LLC in Saudi Arabia 2026: Requirements, Steps & Cost
How foreign investors set up a limited liability company (LLC) in Saudi Arabia in 2026: requirements, ownership vs management, steps and what the cost covers.
When a foreign investor decides to enter the Saudi market, the question we ask first isn't "which activity?" but "who will own the company, and who will run it?" The answer almost always leads to the same legal form: the limited liability company (LLC) in Saudi Arabia. It is the form most of our clients choose, and here is why, how it works, and what the cost covers.
What is an LLC in Saudi Arabia?
An LLC is a company with its own legal personality, owned by one or more partners. Its debts stay with the company: if it runs into trouble, creditors can only claim what the company owns, not the partners' personal money. Under the Saudi Companies Law, an LLC can have up to 50 partners, and it can also be owned by a single person, which is called a single-person company. Read more about the single-person company.
Why the LLC suits foreign investors
Full foreign ownership in most activities, with no Saudi partner.
Liability limited to the capital.
A Saudi legal entity that can bid for many government tenders, unlike a branch. Compare it with a foreign company branch.
Easy to bring in a new partner or sell a share later.
Partnership companies, by contrast, aren't open to foreign investors at all.
Ownership is not management
A point many investors miss: owning the company and managing it are two different things. You can own 100% and appoint someone else as manager, or own a share and manage the whole company. The articles of association decide this.
That is why we take time on the manager's powers. Some decisions should be taken by the partners jointly, such as selling assets or borrowing, and some can be taken by one manager alone, such as day-to-day operations. If a partner has less experience, keep the big decisions joint. A clear split from the start protects you from disputes later.
Requirements for a foreign investor
A parent company outside Saudi Arabia that has completed at least one financial year and has financial statements.
A clean record in its home country, with no unpaid taxes or social insurance.
Documents notarized and attested in its home country and by the Saudi embassy.
A MISA investment license for the activities you want.
If you don't have a parent company, we set one up for you in Egypt to the Saudi requirements, and it is included in the package price. If you already have one that meets the requirements, the cost is lower.
Steps to set up an LLC in Saudi Arabia
1. Prepare the parent company
We review its papers, prepare its financial statements, and attest the documents.
2. Get the investment license
We apply to the Ministry of Investment for your activities. Under the new Investment Law, several activities can be combined in one license. See our guide to the MISA license.
3. Reserve the trade name
The name must not already be used in the Kingdom. Since 2025, English trade names are also allowed, so you are no longer limited to an Arabic name.
4. Draft the articles of association
This is where we set the partners' shares, the capital, the manager and the manager's powers.
5. Issue the commercial registration
Once the articles are approved, the Saudi CR is issued.
6. Register on government platforms
ZATCA for Zakat and income tax, then GOSI, then Qiwa, and after that you can appoint an account manager and issue visas for your staff. VAT registration is mandatory once your annual revenue exceeds SAR 375,000.
You can start your request online through the ASSIS platform.
How much does an LLC cost in Saudi Arabia?
The cost depends on your activity (trading costs more because of its extra requirements), whether you already have a parent company, and how many activities you need. We give you a clear quote before you start.
The price includes the Egyptian parent company, its financial statements, all attestations, the investment license, the articles of association, the CR, and registration on Qiwa, Sabl, GOSI, VAT, income tax and Zakat, plus HR setup. For the full breakdown, see our guide to company formation in Saudi Arabia.
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, with offices in Riyadh, Jeddah and Cairo. In this video, Mr. Salah Ellwaa walks through the formation steps:
Contact us and we will help you set the shares, the manager's powers and the activities that fit your plan.
FAQ
How many partners can an LLC have in Saudi Arabia?
From one partner, as a single-person company, up to 50 partners.
Can several investors share one company and split the cost?
Yes, through a multi-partner LLC, with each partner's share set in the articles of association.
I work for a company in Saudi Arabia. Can I set up my own LLC?
Yes. Saudi labor law doesn't stop you from starting your own business as long as you do it properly. You can stay with your current employer and move your residency to your own company later. Contact us so we can plan the right order of steps for your case.
Can my company have an English name?
Yes, English trade names have been allowed since 2025, as long as the name isn't already in use.
Can I increase the capital later?
Yes, by a partners' resolution and an amendment to the articles of association and the CR.
Can I be a partner without being the manager?
Yes. Ownership and management are separate, and the articles of association define who manages the company and with what powers.
How does a partner leave the company?
The partner sells their share to the other partners or to a new partner, and the change is made through a partners' resolution and an amendment to the articles of association and the CR. Contact us and we'll prepare the resolution and handle the procedure.