Can a foreigner own 100% of a company in Saudi Arabia?
Yes. Saudi Arabia allows full foreign ownership in most activities, provided you first register with MISA and then register the company with the Ministry of Commerce. Since the new Investment Law took effect in 2025, investor registration has replaced the MISA licence, although many people still call it a MISA licence. In most cases, company formation in Saudi Arabia for foreigners no longer requires a sponsor or Saudi partner.
The exception is a set of activities that remain closed to foreign investment or come with conditions, such as a Saudi partner, high capital or approval from a sector regulator. That is why the first thing we do with any investor is check the activity before any fee is paid.
After formation, a foreign-owned company is generally treated like a Saudi company in most procedures: it can lease premises, hire Saudi and foreign staff and contract with government and private clients within its licensed activity.
Note that the sole establishment is reserved for Saudi and GCC nationals, so a foreign investor usually sets up an LLC or a branch of the parent company.
Entity options for foreign investors
Foreign investors usually choose between three entities: a limited liability company (LLC), a branch of a foreign company, or a regional headquarters (RHQ). The table compares them.
| Entity | Suits | Liability | Indicative timeline |
|---|---|---|---|
| LLC | Individuals and companies wanting an independent Saudi entity | Limited to the company's capital | 30 - 45 days |
| Branch of a foreign company | An existing company delivering its own contracts in KSA | Parent company is liable for the branch | 30 - 50 days |
| Regional headquarters | International groups managing the region from Riyadh | Set by the RHQ licence and scope | 45 - 75 days |
Timelines are indicative and depend on complete documents and authority processing. Confirm before applying.
Activities that need a Saudi partner or high capital
Most service, industrial, technology and consulting activities are open to 100% foreign ownership, but some remain excluded or conditional. MISA publishes excluded and restricted activities and their conditions in its Investor Guide and updates them from time to time. Examples that have historically appeared on the list or carry current conditions include:
- Oil exploration and production.
- Manufacture of military equipment.
- Security and investigation services.
- Real estate investment in Makkah and Madinah, with specific legal exceptions.
- Commercial activity (wholesale and retail): according to MISA's 2026 Investor Guide, 100% foreign ownership requires SAR 30 million in capital, presence in at least 3 regional or global markets and commitments such as investing SAR 300 million over five years or specified alternatives; with a Saudi partner holding at least 25%, the capital is about SAR 26.7 million. Check the current rule before applying.
- Regulated professions such as law, accounting, engineering and medicine, which need a professional licence from the sector body as well as the investment licence.
This list is indicative and changes. We check your specific activity before you pay any fee.
Documents and attestation
A foreign company or individual investor needs documents from their home country, attested and then translated into Arabic. Attestation is normally done by the notary or competent authority in the issuing country and then by the Saudi embassy or consulate, or by apostille depending on the country; attestation and translation cost about SAR 2,000 to 6,000.
Make sure company and shareholder names match across every document and translation, and use a certified translation office, because any difference in a name or date can trigger a correction request and repeat attestation, one of the most common causes of delay we see with foreign investors.
- For the parent company: commercial registration or certificate of incorporation, and articles or memorandum of association.
- Audited financial statements for the parent's latest financial year, where requested.
- Board or shareholders' resolution to invest in Saudi Arabia and appoint the manager.
- Passport copies of the shareholders and the appointed manager.
- For an individual investor: passport and proof of financial standing or experience if requested.
- Power of attorney or delegation so the service provider can complete transactions on the official portals.
Steps for company formation in Saudi Arabia for foreigners
Company formation in Saudi Arabia for foreigners runs in six main stages, and we send you an update at each one.
Activity and entity check
We confirm the activity is open to foreign investment and choose the right entity and capital.
Prepare and attest documents
Attest documents in your country and at the Saudi embassy, then obtain certified Arabic translations.
MISA registration
Submit the investor registration (formerly the MISA licence) on the MISA platform and follow it to approval; MISA's published service time is 10 working days once the application is complete.
Commercial registration and articles
Reserve the trade name, notarise the articles of association and issue the CR with the Ministry of Commerce.
Post-CR registrations
Chamber of Commerce, Balady licence, national address, ZATCA, GOSI, Qiwa and Muqeem.
Bank account and visas
Open the company bank account and issue visas and iqamas for the manager and staff.
Obligations after formation for a foreign-owned company
The work does not end with the commercial registration: a foreign-owned company has yearly obligations that should be planned from the start so its services on government platforms are not blocked.
- Register with ZATCA, file tax returns and register for VAT once you reach the registration threshold. The foreign shareholder's share is usually subject to income tax while a Saudi shareholder's share is subject to zakat; check with a licensed accountant.
- Register employees with GOSI and record their contracts on Qiwa.
- Meet Saudization ratios under the Nitaqat programme for your activity and headcount, as they affect visa issuance.
- Renew Chamber of Commerce membership and the Balady licence every year, and renew iqamas before they expire.
- Complete the annual update of your MISA investor registration, and update the record whenever partners, capital or activities change.
We handle these obligations as part of our government transaction services, for a fixed quote.
Cost and timeline for foreign investors
Government fees for a foreign-owned LLC start at about SAR 6,700 and reach roughly SAR 16,300, plus the MISA registration fee, which MISA sets when it approves the application, so confirm the current fee with us.
| Item | Indicative range (SAR) |
|---|---|
| Commercial registration (incl. VAT) | 1,380 - 2,300 |
| Articles of association notarisation | 500 - 2,000 |
| Chamber of Commerce | 2,000 - 3,000 per year |
| Balady licence | 800 - 3,000 per year |
| Document attestation and translation | 2,000 - 6,000 |
| Work visa and iqama, first year | 10,000 - 15,000 per person |
| Shared or private office | 15,000 - 60,000 per year |
Grow More's fee is a fixed quote agreed before work starts. We are an independent private firm, not a government body, and we never ask for passwords or OTP codes.
Government fees shown are indicative and change from time to time. Grow More is an independent private firm, not a government body; we confirm current fees in your quote before we start.