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Introduction
Setting up a Limited Liability Company (LLC) in Saudi Arabia is one of the most preferred business structures for investors and entrepreneurs. With its business-friendly regulations and rapidly expanding economy, Saudi Arabia offers a promising landscape for LLC company formation. This article provides a step-by-step guide to help you establish your LLC successfully.
Benefits of LLC Company Formation in Saudi Arabia
100% Foreign Ownership
Limited Liability Protection
Access to the Saudi Market
Tax Incentives
Ease of Business Setup
Step-by-Step Process for LLC Company Formation in Saudi Arabia
1. Choose a Business Activity and Company Name
Select an appropriate business activity as per Saudi regulations.
Ensure the company name complies with the Ministry of Commerce and Investment (MOCI) guidelines.
2. Secure an Investment License from MISA
The Ministry of Investment Saudi Arabia (MISA) issues investment licenses for foreign-owned businesses.
Submit the required documents, including a business plan, passport copies of shareholders, and financial statements.
3. Draft and Notarize the Articles of Association (AoA)
The Articles of Association (AoA) outline the company’s structure, ownership, and operational details.
It must be notarized and attested by the relevant Saudi authorities.
4. Register with the Ministry of Commerce and Obtain Commercial Registration (CR)
Submit the notarized AoA along with shareholder details to the Ministry of Commerce (MOC).
Upon approval, a Commercial Registration (CR) certificate is issued.
5. Open a Corporate Bank Account
A corporate bank account is mandatory for handling financial transactions.
The bank may require the CR, investment license, and shareholder details.
6. Register with ZATCA for Tax and VAT Compliance
The Zakat, Tax and Customs Authority (ZATCA) registration is necessary for tax compliance.
Obtain a VAT registration number if your annual turnover exceeds the VAT threshold.
7. Obtain Necessary Business Licenses and Visas
Apply for sector-specific business licenses if required.
Secure Iqama (residency permits) for foreign employees and partners.
Cost of LLC Company Formation in Saudi Arabia
The cost varies depending on the business activity, licensing requirements, and additional government fees. On average, the cost includes:
MISA Investment License: SAR 2,000 – SAR 10,000
Commercial Registration (CR) Fees: SAR 1,200 – SAR 5,000
Notarization & Legal Fees: SAR 3,000 – SAR 7,000
Office Rental & Setup Costs: Varies by location and business type
Why Choose Saudi Arabia for Your LLC Formation?
Saudi Arabia is a strategic business hub with a growing economy, government-backed initiatives like Vision 2030, and a strong regulatory framework. The country provides a stable environment for both startups and multinational enterprises.
Conclusion
LLC company formation in Saudi Arabia is a lucrative opportunity for business expansion. By following the right procedures and complying with local regulations, entrepreneurs can set up their businesses efficiently. Whether you are a local investor or a foreign entrepreneur, the Saudi market offers immense potential for growth.
Need Expert Assistance? Contact our consultancy to streamline your business setup in Saudi Arabia!
