Start a Limited Liability Company in Saudi Arabia

If you want to open a limited liability company in Saudi Arabia, our local specialists are at your disposal with various services to ease the procedure. Discover below why you should choose this entity to start a business in this country.

Is Saudi LTD remote registration available with you?

Yes, we offer dedicated services through which we can represent you for company registration.

What types of LTDs are available for registration in Saudi Arabia?

There is a single LLC form (with one or more partners); the 'public' company is in fact the joint stock company. Compare:

• private;
• public.

Among these, the private limited liability company is the most employed because of the faster and simpler registration procedure with the Ministry of Commerce (Commercial Register).

What are the main features of the Saudi limited liability company?

Here are the main characteristics of this legal form:

1. it has a distinct legal personality from its shareholders;
2. under the new law, the term of a business created under this form is optional, so it can be set up for an unlimited duration;
3. there are several documents that need to be prepared when registering an LLC;
4. the business must have a local office in a Saudi Arabian city;
5. a special license must be obtained in case the business has foreign ownership;
6. it must have at least one shareholder and one director.

What are the steps to start a limited liability company in Saudi Arabia?

1. reserve a commercial name that is unique;
2. draft the Articles of Association, a matter that can be handled by our local agents, as they must be drawn up in Arabic;
3. open the corporate bank account and deposit the share capital;
4. file the documents with the Ministry of Commerce;
5. register for taxation.

NOTE: If the company is owned by a foreign shareholder, the investment must first be registered with the Ministry of Investment (MISA). You can do that with our help.

What documents must I prepare to register a limited liability company in Saudi Arabia?

• valid residence permit or passport for the shareholder;
• ID or residence permit of the director;
• proof of local address for the company;
• share capital certificate;
• Articles of Association;
• Foreign Investment Certificate (if applicable).

What is the minimum number of shareholders in a Saudi limited liability company and is foreign ownership permitted?

The minimum number of shareholders is one. The respective person or company can be a foreigner, respectively foreign owned, as long as the investment is registered with MISA.

Do I need to appoint a local director in my Saudi LTD?

Yes, this is a basic requirement for company formation in Saudi Arabia.

What is the minimum capital for an LTD in Saudi Arabia?

There is no minimum capital imposed; however, the Ministry of Investment recommends at least SAR 100,000 (around USD 26,000) to be deposited.

How long does it take to register a limited liability company in Saudi Arabia?

Approximately 2 months.

What are the main benefits of starting a limited liability company in Saudi Arabia?

One of the main advantages of the LLC in Saudi Arabia is that the company’s shareholders are liable for the debts incurred by the respective business only in the amount they have participated in the company’s capital.

It benefits from a faster and simpler registration procedure with the Ministry of Commerce (Commercial Register) compared to other companies.

Also, the LLC is a great vehicle for foreign entrepreneurs who want to move here and obtain Saudi residence.

Foreign investors are invited to contact our team of consultants in company registration in Saudi Arabia for further assistance on the incorporation of an LLC.