The following provides a focused overview of the typical costs associated with creating and maintaining a standard limited liability company (LLC) in Saudi Arabia for 2025. All figures are sourced from official government documentation and leading advisory resources, giving you an accurate picture of direct company setup and operational expenses.
Typical Company Formation Costs in Saudi Arabia (2025)
For those considering a standard شـركة ذات مسؤولية محـدودة (LLC) in Saudi Arabia, current data confirms that the average initial setup cost is 6,500 SAR. The process does not require a minimum paid-up capital, but several specific government and professional fees must be budgeted for. The table below details the fees involved in registering an LLC:
| Item | Amount (SAR) | Amount (USD)* |
|---|---|---|
| Minimum capital requirement | 0 SAR | $0 |
| Commercial Registration (CR) issuance fee | 1,200 SAR | $320 |
| Chamber of Commerce registration fee | 2,000 SAR | $533 |
| Publication fee (Official Gazette) | 650 SAR | $173 |
| Notary and legal documentation fees | 500 SAR | $133 |
| Lawyer/consultant average service fee | 2,000 SAR | $533 |
| Other government fees (miscellaneous) | 150 SAR | $40 |
| Total (Average) | 6,500 SAR | $1,732 |
*USD estimates based on 1 SAR = 0.266 USD (approximate rate for 2025; always check up-to-date rates for precision).
Key Observations on Setup Costs
- No minimum capital deposit, but registration and documentation must be meticulously completed.
- Legal and consultant fees are not mandatory, but most businesses incur them to ensure compliance and proper filing.
- Governmental and Chamber fees are standardized but subject to minor annual revisions according to official pricing tables.
Ongoing Annual Maintenance Costs
After formation, maintaining an LLC requires annual renewals and compliance operations. According to 2025 figures, annual maintenance costs range from 3,200 SAR (minimum compliance) to 10,000 SAR (including full accounting, audit, and legal support services). See the detailed breakdown below:
| Item | Amount (SAR) | Amount (USD)* |
|---|---|---|
| Commercial Registration (CR) annual renewal | 1,200 SAR | $320 |
| Chamber of Commerce annual renewal | 2,000 SAR | $533 |
| Mandatory accounting/auditing services (minimum) | 1,000 SAR | $266 |
| Mandatory accounting/auditing services (average) | 6,000 SAR | $1,598 |
| Other government fees (miscellaneous) | 150 SAR | $40 |
| Optional legal retainer (recommended) | 1,650 SAR | $439 |
*USD conversion as above. Note that your annual cost will depend on the breadth of accounting, audit, and legal services opted for.
Maintenance Fee Notes
- Basic compliance (registration and minimum accounting) yields a lower annual figure, while robust audit and legal support will push costs towards the upper range.
- Accounting and audit requirements are determined by the size and turnover of your entity, in line with Saudi commercial law.
- Renewal fees for both Commercial Registration and Chamber of Commerce memberships are required each year.
Official Sources for Business Setup Information
- Ministry of Commerce and Investment
- Council of Saudi Chambers
- Saudi Arabia Investment Authority
- Ministry of Investment
Pro Tips for Optimizing Company Costs in Saudi Arabia
- Price-shop professional service fees. While government rates are fixed, consultant and legal fees can vary; obtain several quotes to benchmark market rates.
- Plan for mandatory renewals in your annual budget. Missed renewals of Commercial Registration or Chamber memberships may result in penalties or operational delays.
- Engage a qualified accountant early, even if you qualify for minimum service levels. Proactive compliance can reduce risks during future audits.
- Keep all legalized documents and receipts organized. Effective records management will save time and stress in annual renewals and any regulatory inspections.
Setting up and running a standard LLC in Saudi Arabia for 2025 is relatively straightforward from a regulatory cost perspective, with most expenses clearly itemized and publicly disclosed. The absence of a minimum capital deposit reduces barriers to entry, while ongoing annual maintenance remains moderate compared to many global jurisdictions. As always, awareness of official fee schedules, mandatory renewals, and professional service options will help ensure full compliance and efficient operation over the life of your company.