Saudi Arabia · Guide
A quotation for a Saudi company usually arrives as one figure, anywhere from SAR 30,000 to SAR 550,000 for the first year, with the government fees folded inside.
Only a small part of that figure is a tariff. The commercial register publishes its fees to the riyal. The investment registration, still widely called the MISA licence, no longer publishes any amount at all.
This page separates the two, line by line, then prices what the company costs to keep in its second year.
What the commercial register charges
The Ministry of Commerce lists its fees on the service pages of the Saudi Business Center. They were last modified on 16 September 2026 and they are the only fully published part of a Saudi budget.
| Line | LLC | JSC or simplified JSC | When |
|---|---|---|---|
| Incorporation and commercial registration | SAR 1,200 | SAR 1,600 | Once |
| Publication fee | SAR 500 | SAR 500 | Once |
| VAT on the above | 15% | 15% | Once |
| Trade name, Arabic | SAR 200 | SAR 200 | Once |
| Trade name, English | SAR 500 | SAR 500 | Once |
| Annual confirmation of the register | SAR 1,200 | SAR 1,600 | Every year |
For an LLC the arithmetic is short.
- Incorporation is SAR 1,700 before VAT, or SAR 1,955 if the 15% applies to both lines, which is how the ministry's page lists it.
- The name adds SAR 200 or SAR 500, depending on the language you reserve.
- The total sits between about SAR 2,150 and SAR 2,450, roughly USD 575 to 655.
- The service level is 72 hours for incorporation, once a valid investment registration exists.
A general or limited partnership pays SAR 1,000 instead of SAR 1,200. Which form fits a single foreign founder is a separate question, covered in types of companies in Saudi Arabia.
When sources disagree on the register fee
You will find at least five different figures for the same line. The ministry's own page settles it, so the disagreement is worth seeing rather than hiding.
| Figure in circulation | What it appears to be | Matches the ministry page |
|---|---|---|
| SAR 1,200 plus SAR 500 | The LLC fee and the publication fee | Yes |
| SAR 1,600 a year | The JSC and simplified JSC rate, applied to every form | Only for those forms |
| SAR 1,775 "bundle" | An agency total that also covers the chamber of commerce | No such total is published |
| SAR 200 a year | No source given where it appears | No |
| SAR 6,000, then SAR 1,200 | No source given, possibly a multi year renewal | No |
Multi year figures point to a real change. Under the Commercial Register Law in force since 3 April 2025, a commercial registration no longer expires and is no longer renewed for a block of years. It is confirmed once a year, for the fee in the first table.
If a quotation shows a "CR renewal" for three or five years, it was built on the earlier rules. The full annual routine is set out in Saudi company annual compliance.
MISA license cost: the fee that is no longer published
Since the Investment Law took effect in February 2025, a foreign investor registers with the Ministry of Investment instead of obtaining a licence. The registration still comes before the commercial register, and it still carries a fee.
What the ministry no longer does is state the amount. The 2026 edition of its Investor Guide says the applicant "commits to paying the registration fee later, as determined by the ministry upon approval of the application".
- Payment is due within 15 business days of the ministry notifying the amount.
- Miss the window and the registration is void, in the guide's own words.
- The annual update carries the same sentence, so the second year is not priced in advance either.
- The published processing time is 10 working days for the registration itself.
When sources disagree on the MISA fee
| Position | Who holds it | Status |
|---|---|---|
| SAR 2,000 a year, plus SAR 10,000 of services in year one | Older agency guides | Not in the 2025 or 2026 guide |
| SAR 62,000 from the second year | Older agency guides | Not in the 2025 or 2026 guide |
| SAR 12,000 to SAR 35,000 in year one | Several agency pages | Market figure, unsourced |
| Fees "currently suspended" or "waived" | Three agency pages, March to July 2026 | None cites a ministry decision. Not the guide's wording |
| No fixed fee is published | Two agencies in mid 2026 | Consistent with the guide |
| Set by the ministry on approval | MISA Investor Guide, 2026 | Official |
The practical reading: a MISA line in a quotation is an estimate, whatever precision it is printed with. Ask the firm what it paid on its last three files, and when.
Budget a figure, then treat the ministry's notification as the number that counts. You will have 15 business days to pay it.
The capital line is not a fee
Most quotations carry a capital figure, often SAR 500,000, next to the fees. It is not a cost, because the money stays in the company, and for most activities it is not a published requirement either.
The official table sets a minimum on one category only: wholesale and retail trade, at SAR 30,000,000 for a fully foreign owned company. Whether your activity carries a threshold belongs to 100% foreign ownership in Saudi Arabia.
The costs no fee schedule contains
The company itself is cheap. What the Kingdom charges for is presence: someone resident to run the entity, a place to register it, and a workforce the labour system can count.
None of the lines below sits on a government price list, and all of them are market estimates unless marked official.
| Cost | Indicative figure | Nature |
|---|---|---|
| Legalising and translating home documents | USD 1,500 to 5,000 | Market, scales with a corporate shareholder |
| Resident general manager, salary | SAR 20,000 to 25,000 a month | Market, one agency's range |
| Manager's residence permit, first year | SAR 6,000 to 12,000 | Market, includes insurance |
| First Saudi employee, salary | SAR 5,000 to 8,000 a month | Market |
| Office or registered address | Up to about SAR 20,000 a year, shared | Market, one agency's figure |
| Chamber of commerce subscription | SAR 300 to 3,000 a year | Market, by category and city |
| Professional fees for the setup | SAR 5,000 to 80,000 | Market, by scope |
Three of these deserve a closer look, because they are the ones budgets leave out.
- The manager. The official guide organises residence, work permit and exit visas around the general manager, and assumes that person lives in the Kingdom. A remote founder usually ends up hiring or relocating one.
- The Saudi hire. A company that employs foreigners is measured on the Saudis it employs. The rules are in the compliance guide. The salary is the cost.
- The address. The register needs a National Address. Whether a virtual address is accepted for your activity is a question to settle before you sign a lease.
What each employee adds on top of salary
| Charge | Amount | Source status |
|---|---|---|
| Work permit, per foreign employee | SAR 100 a year | Official, ministry service page |
| Social insurance, foreign employee | 2% of wage, paid by the employer | PwC, reviewed July 2026 |
| Social insurance, Saudi employee | 11.75% employer, 9.75% employee | PwC, reviewed July 2026 |
| Wage ceiling for contributions | SAR 45,000 a month | PwC, reviewed July 2026 |
| Expatriate levy, per foreign employee | SAR 800 a month, or SAR 700 | Reported, not confirmed |
On a Saudi employee paid SAR 6,000 a month, the employer's share is SAR 705. On a foreign manager paid SAR 20,000, it is SAR 400.
The expat levy: SAR 800 a month, with a caveat
Almost every budget for a foreign employee includes a monthly levy paid with the work permit. The figure repeated everywhere is SAR 800 a month, or SAR 700 where the company employs at least as many Saudis as foreigners.
That is SAR 9,600 or SAR 8,400 a year for each foreign employee, including a foreign general manager. On those figures it would be the largest government charge the company pays.
The amount could not be confirmed on an official page for this guide. The ministry's work permit service page states the SAR 100 fee and nothing about the monthly charge, and the Qiwa platform could not be read without an establishment account.
- Treat SAR 800 as the planning figure, since it is the higher of the two reported amounts.
- Ask for the Qiwa payment notice from any firm that quotes a different number.
- Do not assume a small company exemption without seeing it applied to your own establishment file.
The industrial exception since December 2025
One sector no longer pays it. On 17 December 2025 the Cabinet abolished the levy on foreign workers in industrial establishments holding an industrial licence, according to the Saudi Press Agency.
The state had already been covering the charge for those factories from 1 October 2019 to 31 December 2025. The decision made the relief permanent instead of temporary.
It applies to licensed industrial establishments, not to a services company that happens to work for industry. Check that the exemption shows on your own file before you remove the line from a budget.
Year one against year two
A formation quote is a year one number. The useful comparison is the second year, when the setup fees are gone and the cost of presence is not.
| Line | Year one | Year two |
|---|---|---|
| Commercial register, LLC | About SAR 2,150 to 2,450 | SAR 1,200 |
| MISA registration, then annual update | Set on approval | Set on approval |
| Chamber of commerce | SAR 300 to 3,000 | SAR 300 to 3,000 |
| Work permit and levy, per foreign employee | SAR 8,500 to 9,700 | SAR 8,500 to 9,700 |
| Manager's residence permit | SAR 6,000 to 12,000 | Renewal, ask for the figure |
| Professional fees | Setup package | Accounting and filings |
Only the first row is fully official. The work permit row adds the published SAR 100 to the reported levy.
Two things do not shrink in year two: the people and the address. On the ranges above, a company with a resident manager and one Saudi employee carries about SAR 300,000 a year or more in salaries before it pays a single fee.
That is why first year totals differ so much between sources. One agency counts SAR 550,000 with a team, another SAR 30,000 to 50,000 without one. Both can be right, because they are not pricing the same thing.
Does the company need an audit?
An audit is a recurring cost worth settling before you sign, and the answer here is not clean.
The Companies Law exempts micro and small companies from appointing an auditor. The Ministry of Commerce set out the test in January 2023: meet two of three criteria.
- Annual revenue of no more than SAR 10 million.
- Total assets of no more than SAR 10 million.
- No more than 49 employees.
The ministry's release names no ownership condition. Some advisers nonetheless say a company with foreign shareholders is audited whatever its size.
That claim was not confirmed on a primary text for this guide. Ask your accountant which rule they apply and on what basis, and keep an audit line in the budget until you have the answer. How the tax filing works is covered in Saudi Arabia corporate tax.
How to read a Saudi quotation
Because the published fees are small, comparing quotations is a comparison of scope. Two firms at the same price can be selling different things.
| Ask this | Why it changes the number |
|---|---|
| Which lines are government fees, and at what amount? | The register lines can be checked against the ministry page |
| Is the MISA fee included, or passed through at cost? | It is fixed after approval, so an included figure is a guess |
| Does the price cover the manager's residence permit? | It is the step that makes the company operable |
| Is the address included, and for how long? | Often twelve months, then billed separately |
| Are the employee charges in the total? | Levy, work permit and insurance are rarely in a setup quote |
| What does year two cost? | It shows whether the firm has priced the annual cycle |
The answers that reveal the most are about exclusions.
- A low headline price usually stops at the commercial register, before any bank, permit or platform step.
- A precise MISA figure is not more reliable than a range, since the ministry sets it after approval.
- A total with no people in it describes a company that cannot yet invoice or hire.
The order in which these payments fall is set out in how to register a company in Saudi Arabia.
The bottom line
The published cost of a Saudi LLC is small: about SAR 2,150 to 2,450 to enter the commercial register, then SAR 1,200 a year. Those are the only figures in a quotation you can check to the riyal.
Everything else is either set case by case, as with the investment registration, or a price for presence: a resident manager, a Saudi employee, an address, and a monthly charge for each foreign worker.
So budget two years and count the people first. If that figure works for your project, the registration fees will not be what stops you.
To have the investment registration and the commercial register filing handled together, see the Saudi Arabia company formation service.
Frequently asked questions
How much does it cost to register a company in Saudi Arabia?
The published commercial register fees for an LLC are SAR 1,200 plus a SAR 500 publication fee and 15% VAT, and SAR 200 or SAR 500 for the trade name. That is about SAR 2,150 to 2,450. The investment registration fee and all professional fees come on top.
How much is a MISA license in 2026?
No amount is published. The Ministry of Investment's 2026 guide says the registration fee is determined by the ministry when it approves the application and must be paid within 15 business days. Figures such as SAR 2,000, SAR 12,000 or SAR 62,000 come from agencies and older schedules.
What does a Saudi company cost each year after setup?
The annual confirmation of the commercial register costs SAR 1,200 for an LLC. The investment registration has an annual update whose fee is also set by the ministry. The larger recurring costs are salaries, the address, and the charges tied to each foreign employee.
Does a commercial registration still have to be renewed?
No. Since the Commercial Register Law took effect on 3 April 2025, the registration has no expiry date. The company confirms its data once a year and pays the confirmation fee, instead of renewing for several years at a time.
What is the expat levy in Saudi Arabia?
It is a monthly charge on each foreign employee, widely reported at SAR 800, or SAR 700 where Saudis are at least as numerous as foreigners. The amount was not found on an official page for this guide, so confirm it on Qiwa. The work permit itself costs SAR 100.
Do industrial companies pay the expat levy?
Not if they hold an industrial licence. The Cabinet abolished the levy for licensed industrial establishments on 17 December 2025, after the state had covered it since October 2019. The exemption follows the licence, so a services company does not benefit from it.
Is the minimum capital part of the cost?
No. Capital stays in the company. The official guide publishes a minimum for one category only, fully foreign owned trading companies, at SAR 30 million. For other activities no figure is published, which is not a guarantee that none will be asked.
Why do first year estimates range from SAR 30,000 to SAR 550,000?
Because they price different things. The lower figures cover registration and professional fees for a company with no staff. The higher ones add a resident general manager, Saudi employees, an office and a year of compliance.
Does a small foreign owned company need an audit?
The Companies Law exempts a company that meets two of three criteria: revenue up to SAR 10 million, assets up to SAR 10 million, and up to 49 employees. Whether a company with foreign shareholders can rely on it is disputed among advisers, so budget for an audit until confirmed.
How long do the paid steps take?
The published service levels are 10 working days for the investment registration and 72 hours for incorporation at the commercial register. Those are the ministries' own targets for each step, not a total, and they exclude document legalisation, the bank and the manager's residence permit.
Sources
- Ministry of Commerce service page for establishing a company under an investment registration: SAR 1,200 for an LLC, SAR 1,600 for a JSC or simplified JSC, SAR 500 publication fee, 15% VAT, within 72 hours
- Ministry of Commerce service page for the annual confirmation of commercial register data: SAR 1,200 for an LLC, SAR 1,600 for a JSC or simplified JSC, immediate service
- Ministry of Commerce trade name reservation service: SAR 200 for an Arabic name, SAR 500 for an English name
- MISA Investor Guide, 13th edition, version 03 of 2026, section 03.01: the registration fee is set by the ministry on approval and payable within 15 business days, with no amount stated
- Ministry of Human Resources and Social Development service page for issuing and renewing work permits: service fee of SAR 100, through Qiwa
Official and read on 5 October 2026: the Ministry of Commerce fees for incorporation, trade name reservation and annual confirmation of the commercial register (pages last modified 16 September 2026), the wording of the MISA Investor Guide, 13th edition, on registration and annual update fees (read in version 02 of 2026 and unchanged in version 03 of September 2026), the SAR 100 work permit fee on the Ministry of Human Resources and Social Development service page, and the auditor exemption criteria in the Ministry of Commerce release of 29 January 2023. The abolition of the expatriate levy for licensed industrial establishments rests on the Saudi Press Agency report of the Cabinet decision of 17 December 2025. Social insurance rates are taken from PwC Tax Summaries, reviewed 29 July 2026, not from GOSI directly. Market estimates, not tariffs: every MISA fee amount, chamber of commerce subscriptions, platform subscriptions, residence permit costs, salaries, office costs, professional fees and all first year totals, which come from formation agencies and vary by firm. To reconfirm before you budget: the monthly expatriate levy of SAR 800 or SAR 700, which is widely reported but was not found on an official page for this guide, whether the small company auditor exemption is available to a company with foreign shareholders, and any capital expectation MISA applies to your activity. Riyal to dollar conversions use the peg of SAR 3.75. This is not legal or tax advice.