Company Setup Cost in Saudi Arabia 2026: What Affects the Price
What decides the cost of setting up a company in Saudi Arabia in 2026, what the package includes, fees that stopped, and costs to plan for after formation.
"How much will it cost me?" is the question we hear in almost every first call, and it's a fair one. The problem is that most answers online give you one fee here and another there, and you only discover the real total halfway through. Here is the full picture of the cost of setting up a company in Saudi Arabia in 2026: what decides what you pay to get started, what stopped, and what to plan for after formation.
What decides the cost?
Your activity: trading costs more than service, industrial or agricultural activities because of its extra requirements.
Whether you already have a parent company that meets the requirements.
How many activities you need, and whether any of them has special requirements.
For trading, which countries the 3 required companies are in.
Once we know these details, we give you one clear quote that covers the whole formation, with no extras added later. Most of our clients choose an LLC, and the legal form also affects the work involved.
What the price includes
An Egyptian parent company that meets the Saudi investment requirements.
Its financial statements.
All attestations.
The MISA investment license.
The articles of association.
The Saudi commercial registration.
Registration on Qiwa, Sabl and GOSI.
VAT, income tax and Zakat registration.
HR setup.
If you already have a parent company that meets the requirements, the cost is lower, because we won't need to set one up or prepare its financial statements. Send us its documents and we'll give you the exact figure.
Why does a trading company cost more?
A trading license requires 3 companies in 3 countries in different regions, owned by the parent company or carrying its name. Countries from the same region, such as Egypt, Tunisia and Algeria together, won't be accepted. Those extra companies are what push the price up.
The choice of countries also affects what you pay every year after formation. Some countries cost more to maintain; the UAE, for example, is more expensive than most. That's why we choose the countries with you before setting anything up.
The fee that stopped: SAR 62,000
Until February 2025, the investment license cost SAR 62,000 a year, for each license. An investor with two activities in different categories paid more than SAR 120,000 a year. With the new Investment Law, that fee is no longer collected, and several activities can be combined in one license. Read more in our article on the MISA license in 2026.
Costs to plan for after formation
These aren't formation fees, but every new company deals with them, so it's better to know them from day one:
VAT registration, which becomes mandatory once your annual revenue exceeds SAR 375,000.
Income tax of 20% on the net profit of the foreign share.
Social insurance (GOSI) for every employee you hire.
Visas and residency permits for your staff through Qiwa.
Operating licenses for some activities, such as municipality and civil defense licenses for a restaurant or a workshop. See our guide to the municipality license.
An office or premises, if your activity needs a physical location.
Our guide to company formation in Saudi Arabia covers the steps behind each item.
Mistakes that end up costing more
Taking a parent company that already has a social insurance file, which means ongoing contributions you have to keep paying.
Using a parent company that isn't real or has forged papers. Always check its commercial registration yourself. A fake company can cost you your Saudi company and expose you to legal action.
Opening a separate license for each activity when one license can cover them.
Picking the trading countries without considering their yearly costs.
Why EL-LWAA
We have been setting up companies for more than 40 years and have formed more than 1,000 companies in Saudi Arabia. We give you a clear quote with everything included before you start, so there are no surprises later. In this video, Mr. Salah Ellwaa explains the documents and procedures:
Start your request through the ASSIS platform, or contact us for an exact quote for your activity.
FAQ
How much does it cost to set up a company in Saudi Arabia?
It depends on your activity, on whether you already have a parent company, and on how many activities you need. Contact us and we will send you an exact quote that covers the whole formation.
Is the cost lower if I already have a company?
Yes, if it meets the requirements, since we won't need to set up a parent company for you.
Do I still pay SAR 62,000 a year for the license?
No. That fee stopped with the new Investment Law in February 2025.
Do I have to register for VAT straight away?
Registration is mandatory once your annual revenue exceeds SAR 375,000.
How do I pay EL-LWAA?
We agree on the payment method and stages with you before we start, depending on the service and the activity. Contact us for the details.