Company Setup in Saudi Arabia | Formation Cost, Procedures & BoldTarget Business Setup Experts

Introduction: Company Setup in Saudi Arabia – A Strategic Business Move

Saudi Arabia has become one of the most attractive destinations for entrepreneurs and investors worldwide. With Vision 2030, the Kingdom is transforming its economy, opening new sectors, simplifying regulations, and welcoming both local and foreign businesses.

Today, company setup in Saudi Arabia is faster, clearer, and more investor-friendly than ever before. However, understanding formation costs, legal procedures, and compliance requirements remains essential for long-term success.

This comprehensive guide explains:

• Company formation procedures in Saudi Arabia

• Business setup costs in KSA

• Legal and regulatory requirements

• Why BoldTarget is a trusted partner for company formation

Why Saudi Arabia Is Ideal for Business Formation

Saudi Arabia offers unmatched advantages for investors:

• Largest economy in the Middle East

• Strategic location connecting Asia, Europe & Africa

• Government-backed mega projects

• 100% foreign ownership in many sectors

• Strong infrastructure & digital government platforms

As a result, business setup in Saudi Arabia is attracting startups, SMEs, and multinational corporations alike.

Types of Company Structures in Saudi Arabia

Choosing the correct structure is a critical step in company formation in Saudi Arabia.

1. Limited Liability Company (LLC)

The most common structure for local and foreign investors.

Key features:

• 1 or more shareholders

• Limited liability

• 100% foreign ownership (for permitted activities)

• Flexible management

2. Branch of a Foreign Company

Suitable for international companies entering KSA.

Key features:

• No separate legal personality

• Parent company bears full liability

• Common in construction, engineering, and consulting

3. Joint Stock Company (JSC)

Ideal for large projects and enterprises.

Key features:

• Higher capital requirements

• Strong governance framework

• Suitable for public offerings

Foreign Investment & MISA Licensing

Foreign investors must obtain approval from the
Ministry of Investment of Saudi Arabia (MISA).

Activities Open to Foreign Ownership

• Construction & contracting

• IT & software development

• Engineering & consulting

• Manufacturing & industrial activities

• Trading & marketing services

MISA licensing ensures legal protection, profit repatriation, and access to Saudi markets.

Step-by-Step Procedures for Company Setup in Saudi Arabia

Step 1: Define Business Activity

Your activity determines:

• License type

• Capital requirements

• Regulatory approvals

BoldTarget ensures your activity selection is 100% compliant.

Step 2: Trade Name Reservation

The company name must:

• Be unique

• Reflect the licensed activity

• Follow Saudi naming regulations

Step 3: Obtain MISA License (Foreign Investors)

Required documents typically include:

• Passport copies of shareholders

• Company profile

• Board resolution

• Financial statements (for foreign companies)

BoldTarget manages submission, follow-up, and approvals.

Step 4: Draft Articles of Association

Prepared, translated, and notarized in accordance with Saudi law.

Step 5: Commercial Registration (CR)

Issued by the Ministry of Commerce, officially establishing the company.

Step 6: Municipality License & Office Address

A physical business address is mandatory.

BoldTarget assists with:

• Office leasing compliance

• Municipality approvals

• Address registration

Step 7: Corporate Bank Account

We support:

• Bank selection

• Account opening

• Capital deposit procedures

Step 8: Government Platforms Registration

Mandatory registrations include:

• ZATCA (tax & VAT)

• GOSI (social insurance)

• Qiwa (labor management)

• Muqeem (residency & visas)

Company Formation Cost in Saudi Arabia

Understanding company setup cost in Saudi Arabia helps investors plan accurately.

Main Cost Components

• MISA license fees

• Commercial Registration (CR)

• Chamber of Commerce membership

• Municipality license

• Office lease

• Professional consultancy fees

Estimated Cost Range

💡 SAR 15,000 – SAR 80,000+, depending on:

• Business activity

• Ownership structure

• City (Riyadh, Jeddah, Dammam)

• Foreign vs local investor

BoldTarget provides transparent pricing with no hidden fees.

Taxes & Ongoing Compliance in Saudi Arabia

Corporate Tax

• 20% corporate tax on foreign-owned profits

• 2.5% Zakat for Saudi/GCC ownership

VAT

• 15% Value Added Tax

Compliance Requirements

• Annual financial statements

• VAT returns

• License renewals

• Saudization (Nitaqat) compliance

BoldTarget ensures full compliance, protecting your business from penalties.

Saudization & Employment Regulations

All companies must comply with Saudization laws.

Key Points

• Mandatory hiring of Saudi nationals

• Saudization ratios vary by sector

• Non-compliance leads to fines and service suspension

BoldTarget develops custom Saudization strategies aligned with your activity.

Company Setup in Major Saudi Cities

Company Setup in Riyadh

Ideal for:

• Headquarters

• Consulting & professional services

• Technology firms

Business Setup in Jeddah

Best for:

• Trading & logistics

• Import/export companies

• Tourism & hospitality

Company Formation in Dammam & Khobar

Preferred for:

• Construction & contracting

• Manufacturing

• Oil & gas services

BoldTarget handles region-specific compliance seamlessly.

Why BoldTarget Is a Trusted Partner for Company Formation

BoldTarget is more than a service provider—we are a long-term business partner.

What Sets BoldTarget Apart

✔ Saudi-based expert team
✔ Strong government platform experience
✔ Fast-track approvals
✔ Bilingual (Arabic & English) support
✔ End-to-end services from setup to growth

We focus on speed, compliance, and scalability.

Who Should Work with BoldTarget?

• Foreign investors entering Saudi Arabia

• SMEs & startups

• Construction & contracting companies

• IT & software firms

• Trading & logistics companies

• Vision 2030 project investors

Beyond Company Formation: BoldTarget Business Support

After setup, BoldTarget continues supporting you with:

• Government relations (GRO) services

• License amendments & renewals

• ERP & CRM solutions

• Digital marketing & lead generation

• ISO & regulatory certifications

✔ One partner for your entire Saudi business journey.

Conclusion: Start Your Business in Saudi Arabia with Confidence

Company setup in Saudi Arabia offers powerful opportunities—but success depends on proper planning, accurate costing, and full compliance.

With BoldTarget, you gain:

• Clear formation costs

• Structured procedures

• Reliable local expertise

• Long-term operational support

📍 Riyadh | Jeddah | Dammam
🚀 BoldTarget – Your Trusted Partner for Company Formation in Saudi Arabia