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How to set up a limited liability company in Saudi Arabia
The steps as the Ministry of Commerce publishes them: what the service completes in a single pass, the conditions that stop an application, and the stated fees with the date they were last updated.
Dynamics team Editorial desk 3 min read Guides
Incorporating a limited liability company in the Kingdom is an electronic procedure completed in one pass, with no branch visit. What follows is based on the Ministry of Commerce's official service page and on the text of the Companies Law — not on second-hand accounts.
What an LLC is
Article 156 of the Companies Law defines it as a company founded by one or more persons, natural or legal, whose financial liability is separate from that of each partner or owner. The company alone is liable for its debts and obligations, and a partner is answerable only to the extent of their share in the capital.
That separation is the practical reason to choose this form over a sole establishment, whose owner carries its obligations across everything they own.
Where the service lives
On the Saudi Business Center platform. In February 2026 a Council of Ministers decision merged the Saudi Business Center with the National Competitiveness Center into the Saudi Center for Competitiveness and Business, which is now the body delivering business-sector services through the unified platform.
What the service completes
The real advantage is that one pass now covers what used to mean approaching several authorities:
- Recording the commercial registration and the articles of association or bylaws.
- Publishing the contract in the A'mali newspaper.
- Opening a business file with the Ministry of Human Resources and Social Development.
- Registering with the Zakat, Tax and Customs Authority.
- Registering with the General Organization for Social Insurance.
- Subscribing to the National Address with Saudi Post (SPL).
- Subscribing to the Chamber of Commerce for the location.
Identification numbers at those bodies are issued automatically when the CR is printed, so they do not need separate applications afterwards.
The steps
- Enter the Saudi Business Center platform.
- Choose the limited liability company incorporation service.
- Click "Start Service".
- Determine the number of partners.
- Determine the company's status (optional).
- Apply for the service.
You then complete the data: register duration, location, company activities and purposes, partner data, commercial registry data, company data, company management data, company contract data, and the order summary.
The conditions that stop an application
These surprise applicants most often, because they surface only at the form:
- Partners must be at least 18; for a minor, a guardianship deed is required.
- Partners must not be government employees.
- A legal document is required if a partner is a government entity, a civil institution, a charitable association or a waqf, entitling them to incorporate or participate.
- A licence or initial approval from the Saudi Central Bank is required if the activity calls for it.
- The commercial registration must not be cancelled or suspended where a partner is a legal person.
If the company is a professional one
Three further conditions apply: partners must hold a valid professional licence, the share of licensed Saudi partners must not fall below 25%, and the share of licensed partners must not fall below 70%.
Fees and duration
Per the Ministry of Commerce service page (page last updated 16 September 2026):
| Item | Amount |
|---|---|
| Commercial registration | SAR 1,200 |
| Publication fees | SAR 500 |
| VAT | 15% |
Service duration: immediate.
Fees change. Check the service page before relying on these figures, and do not budget from a number copied out of an article.
The single-person LLC
An LLC may be founded by one person. Article 157 provides that this person holds the powers of the manager, the board of managers and the partners' general assembly combined, and that their decisions are issued in writing and recorded in a special register kept by the company.
One detail that catches people out: a single-owner company has articles of association, not a founding contract.
What this service does not cover
- Foreign investors: incorporating under an investment licence is a different route with its own service.
- Activity licences: a commercial registration is not a licence to operate. Many activities require a permit from a competent authority before trading begins.
- Converting an establishment: turning an existing sole establishment into a company is also a separate service.
Before you settle on this form
An LLC is not the only option, and not always the right one. The differences between the five forms are set out in company forms under the Saudi Companies Law.
This article explains a procedure; it is not a substitute for legal advice.
Sources
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