Business Setup Timeline & Costs
Understand the time and investment required to establish your business in Saudi Arabia with a clear breakdown of all expenses and timeframes.
Plan Your Business Setup Journey
Setting up a business in Saudi Arabia involves multiple steps and various costs. Understanding these elements is crucial for proper planning and budgeting. Below, we provide a comprehensive overview of the expected timeline and cost structure for establishing your business in the Kingdom.
Business Setup Timeline
Initial Consultation & Planning
1-2 weeksConsultation with business setup advisors, determining the optimal company structure, and developing an implementation strategy for your specific business needs.
Document Preparation
1-2 weeksGathering and preparing all required documents, including company registration forms, shareholder information, articles of association, and other supporting documentation.
MISA License Application
5-7 business daysFor foreign investors, obtaining an investment license from the Ministry of Investment (MISA), which is a prerequisite for establishing a business entity in the Kingdom.
Name Reservation & Articles of Association
3-5 business daysReserving your company name and preparing and notarizing the Articles of Association, which outline the company structure, shareholder information, and operational framework.
Commercial Registration
1-2 business daysRegistering your company with the Ministry of Commerce to obtain a Commercial Registration (CR) certificate, which officially establishes your business entity in Saudi Arabia.
Required Registrations & Licenses
1-2 weeksObtaining additional registrations including Chamber of Commerce membership, municipality license, Zakat and tax registration, and GOSI (social insurance) registration.
Bank Account Opening
5-10 business daysSetting up a corporate bank account with a Saudi bank, which may require various documentation and approvals depending on the bank's requirements and procedures.
Office Setup & Visa Processing
2-4 weeksEstablishing a physical office and processing work visas for expatriate employees, which involves multiple government authorities and security clearances.
Total Timeline
The total timeline for business setup in Saudi Arabia typically ranges from 4-8 weeks for an LLC, depending on the complexity of your business structure, the responsiveness of relevant authorities, and the completeness of your documentation. More complex structures like Joint Stock Companies may take longer.
Cost Breakdown for Business Setup
Government Fees
| MISA License (for foreign investors) | SAR 2,000 |
| Commercial Name Reservation | SAR 200 |
| Commercial Registration (5 years) | SAR 1,200 |
| Articles of Association Notarization | SAR 2,000 - 5,000 |
| Chamber of Commerce Membership (varies by capital) | SAR 2,000 - 10,000 |
| Municipality License (annual) | SAR 1,000 - 5,000 |
| Commercial Registration Publication | SAR 1,500 |
| Labor Office File Opening | SAR 2,000 |
| Social Insurance (GOSI) Registration | Free |
| Zakat & Tax Registration | Free |
Professional Service Fees
| Business Setup Consultancy | SAR 5,000 - 15,000 |
| Legal Documentation Preparation | SAR 3,000 - 8,000 |
| License Application Assistance | SAR 4,000 - 7,000 |
| Articles of Association Drafting | SAR 3,000 - 6,000 |
| Commercial Registration Processing | SAR 2,000 - 5,000 |
| Bank Account Opening Assistance | SAR 1,500 - 3,000 |
| Post-Setup Compliance Support | SAR 2,000 - 5,000 |
| Visa Processing (per person) | SAR 2,500 - 4,000 |
| Comprehensive Setup Package | SAR 15,000 - 30,000 |
Additional Operational Costs
| Office Rent (annual, varies by location) | SAR 30,000 - 200,000 |
| Office Security Deposit | 10% - 20% of annual rent |
| Utilities Setup | SAR 2,000 - 5,000 |
| Basic Office Furniture & Equipment | SAR 20,000 - 50,000 |
| IT Infrastructure Setup | SAR 10,000 - 30,000 |
| Internet & Communication Setup | SAR 3,000 - 8,000 |
| Insurance (annual) | SAR 5,000 - 20,000 |
Annual Recurring Costs
| MISA License Renewal (annual) | SAR 2,000 |
| Municipality License Renewal | SAR 1,000 - 5,000 |
| Chamber of Commerce Membership Renewal | SAR 2,000 - 10,000 |
| Audit & Accounting Services | SAR 10,000 - 30,000 |
| Work Permit Renewals (per employee) | SAR 2,000 - 4,000 |
| Health Insurance (per employee) | SAR 1,800 - 4,500 |
| GOSI Contributions (varies by salary) | 9% - 22% of payroll |
Important Consideration
The costs provided are estimates and may vary based on your specific business requirements, company size, activity type, and location within Saudi Arabia. It's advisable to maintain a contingency budget of approximately 15-20% to account for unexpected expenses or changes in government fees.
Business Setup Cost Calculator
Use our interactive calculator to estimate the cost of establishing your business in Saudi Arabia based on your specific requirements.
Frequently Asked Questions about Timeline & Costs
What is the minimum capital requirement for foreign companies in Saudi Arabia?
The minimum capital requirements vary by sector and activity. For trading activities, the minimum capital is typically SAR 30 million (approx. USD 8 million). For service-based companies, the minimum capital can be as low as SAR 500,000 (approx. USD 133,000).
However, these requirements have become more flexible in recent years, especially for innovative businesses or those in priority sectors under Vision 2030. For 100% Saudi-owned LLCs, there is no statutory minimum capital requirement.
Are there any hidden costs I should be aware of when setting up a business?
While we aim to provide a comprehensive cost breakdown, some additional expenses to consider include:
- Document translation and attestation: If you're bringing documents from outside Saudi Arabia
- Business travel costs: For site visits and meetings with authorities
- Legal representation: For complex cases or dispute resolution
- Marketing and branding: Initial setup of website, marketing materials
- Saudization costs: Higher salaries for Saudi nationals and training programs
- Expatriate levy: An annual fee for each expatriate employee
Our consultants can provide a detailed breakdown tailored to your specific situation to avoid any unexpected expenses.
What factors can delay the business setup process in Saudi Arabia?
Several factors can extend the timeline for business setup:
- Incomplete or incorrect documentation: One of the most common reasons for delays
- Regulatory changes: Updates to laws and procedures can cause temporary delays
- Special approval requirements: For regulated sectors like healthcare, education, or financial services
- Banking procedures: Opening a corporate bank account can sometimes take longer than expected
- Authentication of foreign documents: Delays in document legalization at embassies or ministries
- Security clearances: For certain nationalities or sensitive business activities
Working with an experienced business setup service can help mitigate these risks and navigate any challenges that arise during the process.
What payment methods are accepted for government fees in Saudi Arabia?
Government fees in Saudi Arabia can typically be paid through:
- SADAD system: Saudi Arabia's electronic payment system
- Bank transfers: From Saudi bank accounts
- Debit/credit cards: For many online government services
- Cashier's checks: For some larger payments
Most government services now prefer electronic payments through their online portals. Our team can assist with processing these payments on your behalf if needed.
Can I expedite the business setup process for an additional fee?
Saudi Arabia does not offer official "fast-track" or "express" services for company formation with additional government fees. However, the process can be expedited in several ways:
- Premium service packages: Business setup firms (like ours) often offer premium packages with dedicated resources and priority handling
- Complete documentation: Ensuring all documentation is complete and accurate from the start
- Established relationships: Working with service providers who have established relationships with government entities
- Proper preparation: Thorough preparation before submitting applications
Our team at Talented Hands can help optimize your timeline based on your specific requirements and urgency.
Need a Personalized Cost Estimate?
Our business setup experts can provide a detailed timeline and cost breakdown tailored to your specific business requirements.
Schedule a Free Consultation