Investments in Saudi Arabia have made an accelerated growth within the recent years to comply with the 2030 vision, especially in the non-oil investments. This rapid growth is supported by the establishment of different types of companies in Saudi Arabia, either Saudi companies, or foreign investments. This article represents a simplified guide toward more knowledge about types of companies in Saudi Arabia, and how to establish them according to the most recent guides in 2025.
What are the different types of companies in Saudi Arabia?
According to the Saudi Ministry of Investment, the main types of companies in Saudi Arabia are as follows:
- General partnership company
- Joint stock company
- Simplified joint stock company
- Limited liability company
- Simple limited partnership
- Foreign company branch (foreign investments)
- Solidarity of professional company
What are the steps of establishment of different types of companies in Saudi Arabia?
Generally, there are some fixed steps that are used for establishing a company in Saudi Arabia regardless of its type, and other steps that may differ between different company types. In the following paragraph, we will give you the steps of establishing your company in Saudi Arabia.
- The first step you need to do is to prepare the required documents. You will need to prepare a number of required documents in order to begin the registration process of your company, these documents can be listed as follows:
- A copy of a national ID of each one of the shareholders, the owner of the company and the general principles. If one of the owners is a foreigner, he needs to prepare his passport and his national ID certified from the Saudi embassy in his country.
- The company establishment contract which needs to contain all the required information about the company, partners, company’s capital and the type of the company.
- Certificate of Capital Deposit in a Bank Account at a Saudi Bank.
- Certificate of Good Conduct and Behavior certified from the ministry of foreign affair for the partners and the general principle.
- The second step is the issuing of the commercial registration, which includes the registration of the company on the official website of the Saudi Ministry of Commerce, you can register a company in the Ministry of Commerce by doing the following steps.
- Prepare the company’s article of association after its notarization by the Notary, and Shareholders’ resolution to appoint the general manager if present, authenticated by the Ministry of commerce.
- Prepare an identity proof for the foreign shareholders and directors, a copy of national ID for Saudi shareholders and a document by “ABSHAR” System to prove the profession or a copy of the commercial registration, shareholders’ resolution and the articles of association for the engaged Saudi companies.
- The original and a copy of “Booking Commercial Name”.
- Delegation approved for the applicant with a proof of delegating person identity.
- make an electronic publication through the portal of “my Business” on the website of the Ministry of Commerce to summarize the contract of incorporation.
- Some companies may require additional licenses, so you need to check if there are any additional licenses required.
- Make a registration in the Zakat and Tax authority.
- Make a registration in the social insurance authority if you have employees.
- Register your company’s location on the Saudi post website.
Establish your company in Saudi Arabia, with Mousa & partners
With Mousa & partners legal office, you can get your legal consultations required to begin your company in Saudi Arabia. With Mousa & Partners legal services you can get legal consultations to establish the following:
- Foreign companies. Which includes the establishment of foreign branches, representative offices, joint ventures and limited liability companies.
- Saudi and Gulf companies, which involves limited liability companies, joint stock companies,
- Foreign investment services.
Company services with Mousa & partners legal office
Mousa & partners legal office can offer you special consultations regarding your company, to solve all problems you may face during the establishment of a new company, or the operation of the company. With Mousa & partners legal office you can get the following company legal services:
- Transformation of companies from limited liability to simplified joint-stock companies.
- Transformation of companies from limited liability to closed joint-stock companies.
- Transformation of companies from limited liability to publicly listed joint-stock companies.
- Transformation of companies from simplified joint-stock to closed or publicly listed joint-stock companies.
- Attendance at board of directors’ meetings.
Common questions on types of companies in Saudi Arabia
What are the commercial activities in Saudi Arabia exempted from taxes?
Theses types of activities are totally exempted from value added tax as follows:
- Transportation services for goods and passengers outside the Kingdom.
- Qualified international transportation (vehicles, ships, planes) meeting specific criteria.
- Spare parts, consumable materials, maintenance, and repair services for qualified transportation means (under specific conditions).
- International transportation.
- A list of qualified medicines and medical supplies.
- Export of goods outside the GCC region.
- Services supplied to non-residents of GCC countries, enjoyed and utilized outside the GCC.
What is the minimum capital required for each type of company in Saudi Arabia?
- Joint stock company: The minimum capital required to establish a joint stock company is 500,000 SR.
- Limited liability company: the minimum capital required to establish a 100 % Saudi company is 50,000 SR, while the minimum capital will be 20,000,000 SR and 30,000.000 SR in case of 75% and 100% foreign ownership respectively.
- Branch of foreign company: the minimum capital required to establish a branch of foreign company is 500,000 SR.
- Professional companies: there is no minimum capital required for these types of companies.
Contact information for Mousa & partners legal office
Address: Floor H, Building 407, Zone 4, King Abdullah Financial District (KAFD), Riyadh, Saudi Arabia
Phone number: +966505898510
Email: info@mousalegal.com
Working time: everyday from 9 AM to 5 PM, except Saturday and Sunday from 10 AM to 6 PM.
All you need is to contact Mousa & partners legal office to begin the process of establishment of your company, and get the benefits of investment in Saudi Arabia, with the great facilities and encouraging environment.