What is Company Formation in Saudi Arabia?
Company formation in Saudi Arabia is the process of legally establishing a business entity in the Kingdom, either as a Limited Liability Company (LLC), Joint Stock Company (JSC), Branch Office, or Representative Office. The process involves selecting the appropriate business structure, obtaining commercial registration from the Ministry of Commerce and Investment (MOCI), securing necessary licenses, and setting up the required infrastructure for operations. AURNÉ Private Advisory guides clients through every step of Saudi company formation, from initial consultation to ongoing compliance.
Saudi Arabia, under Vision 2030, has significantly liberalized foreign investment, allowing 100% foreign ownership in most sectors. The Kingdom offers access to the largest economy in the Middle East, strategic regional positioning, and growing market opportunities. Our expert advisors help you navigate the evolving regulatory landscape, select the optimal business structure, and handle all aspects of company formation, including licensing, compliance, bank account opening, and visa processing.
Why Choose Saudi Arabia for Company Formation?
Saudi Arabia offers numerous advantages for international businesses:
- Largest Economy in Middle East: Access to a market of over 35 million people with growing purchasing power
- Vision 2030 Opportunities: Strategic initiatives opening new sectors and investment opportunities
- 100% Foreign Ownership: Most sectors now allow full foreign ownership under Vision 2030
- Strategic Location: Gateway to GCC markets and regional expansion
- Growing Market: Diversifying economy with opportunities across multiple sectors
- Infrastructure Investment: Massive infrastructure development creating business opportunities
- Tax Benefits: Competitive tax regime with various incentives
Company Formation Options in Saudi Arabia
Limited Liability Company (LLC)
Best For: Most foreign investors, small to medium businesses, service companies
- Minimum capital: SAR 500,000 (can be lower for certain activities)
- 1-50 shareholders
- 100% foreign ownership permitted in most sectors
- Limited liability protection
- Most common structure for foreign investment
Joint Stock Company (JSC)
Best For: Large operations, public offerings, capital-intensive businesses
- Minimum capital: SAR 2,000,000
- Minimum 5 shareholders
- Can be listed on Saudi Stock Exchange
- Suitable for large-scale operations
- More complex structure and compliance
Branch Office
Best For: Foreign companies establishing presence, executing specific projects
- No minimum capital requirement
- Extension of parent company
- Can engage in commercial activities
- Simpler setup than subsidiary
- Parent company liability
Representative Office
Best For: Market research, promotion, non-commercial activities
- No minimum capital
- Limited to non-commercial activities
- Market research and promotion only
- Fastest setup option
- Cannot generate revenue in Saudi Arabia
Key Cities for Company Formation
Riyadh
Capital city, government center, largest business hub. Ideal for government contracts, corporate headquarters, and major operations.
Jeddah
Commercial capital, port city, gateway to Red Sea. Ideal for trading, logistics, and commercial operations.
Dammam
Eastern Province hub, industrial center, near major oil facilities. Ideal for industrial, energy, and manufacturing operations.
Note: All costs, fees, and prices mentioned are approximate and indicative only. They are subject to change without notice. Actual costs may vary based on specific requirements, regulatory changes, and market conditions. Please contact us for current pricing and a detailed quotation tailored to your specific needs.