What is The Limited Liability Company Saudi Arabia?

Limited Liability Company Saudi Arabia is a favored business structure that provides owners with protection from personal liability for the company’s debts. This makes it an attractive option for entrepreneurs and investors. With supportive regulations and a growing economy, establishing an LLC in Saudi Arabia offers numerous opportunities for both local and foreign entrepreneurs.

In this article, we will talk about the cost of LLCs in Saudi Arabia,  key points of LLC companies in the country, and the registration process for establishing an LLC.

LLC In Saudi Arabia Cost

When considering the costs associated with establishing a limited liability company Saudi Arabia, there are several important factors to take into account. The primary costs include service fees, publishing fees, and taxes applicable to the establishment process.

What is the cost of Limited Liability Company Saudi Arabia (LLC In Saudi Arabia Cost)?

According to MC GOV SA, here are the fees of limited liability company saudi arabia:

1. Service Fees: The cost to register a limited liability company in Saudi Arabia is 1200 Saudi Riyals.
2. Publishing Fees: Additionally, there is a publishing fee of 500 Saudi Riyals, which is required for announcing the establishment of the company in the official publications.
3. Added Tax: A 15% VAT applies to the total fees, which is calculated on the combined amount of the service and publishing fees.

Read also:Saudi Company Register: What Is The Best Process?

Cost Of Opening a Company In Saudi Arabia

Establishing a company in Saudi Arabia involves several costs that may vary depending on the type of business and its specific requirements. Below is an general overview of the common cost of opening a company in Saudi Arabia:

1. Business Registration Fees: The cost for registering a business typically ranges from SAR 1,000 to SAR 10,000 , depending on the entity type and size.
2. Licensing Costs: Depending on your business sector, you may need various licenses. These costs can range from SAR 2,000 to SAR 15,000 or more, based on industry regulations and entity type.
3. Office Space: Costs for renting or leasing office space vary significantly by location and size. Monthly rental expenses can range from SAR 2,000 to SAR.
4. Important Considerations

Potential business owners should engage with a legal expert familiar with local regulations to ensure compliance and efficiency during the establishment process. Additionally, it is essential to budget for ongoing operational costs and other ancillary expenses.

LLC company Saudi Arabia

A limited liability company Saudi Arabia is governed by Article 56 of the Saudi Companies Law. This article defines the LLC as a company established by one or more individuals or legal entities that has a separate legal identity.

Key Points:

1. Limited Liability: Owners’ liability is limited to their investment in the company, protecting personal assets from business debts.
2. Ownership: limited liability company Saudi Arabia can have one or more partners.
3. Independent Entity: The LLC company Saudi Arabia can own property and engage in contracts independently of its owners.
4. Management Flexibility: Owners can designate management roles, allowing for adaptable business operations.
5. Regulatory Compliance: LLCs must comply with local laws, including obtaining necessary licenses and maintaining accounting records.

Check out: The New Companies Law Saudi Arabia Regulations​ in 2024

LLC Company Registration In Saudi Arabia

LLC company registration in Saudi Arabia involves several steps to comply with local laws. Here’s a brief overview of the process:

1. First, the commercial name must be verified through the Ministry of Commerce (https://mc.gov.sa/en) to check if the name is unique or not, and the company should be registered on the Qiwa platform (https://www.qiwa.sa/)  for labor employment.
2. Pre-Registration Requirements
   • Choose a Unique Business Name: Must comply with Saudi naming regulations.
   • Define Company Objectives: Outline the business activities.
   • Draft the Articles of Association: This details the company’s structure, ownership, and management.
3. Gather Required Documents: Documents needed include:
   • National ID or Iqama: For Saudi partners and expatriates.
   • Passport Copy: For foreign investors.
   • Proof of Address: For the registered office.
   • Capital Verification Document: Proof of minimum capital.
4. Submit the Registration Application
   • Apply Online: Use the MoCI portal to submit your application with required documents.
   • Obtain Initial Approval: MoCI will review and issue a commercial registration certificate if approved.
5. Open a Bank Account
   • Corporate Bank Account: Open an account in a Saudi bank and deposit the required capital.
6. Finalize Registration
   • Obtain Commercial Registration (CR): Submit additional documents after fulfilling requirements.
   • Register for Taxes: Get a tax identification number (TIN) from the General Authority of Zakat and Tax (GAZT).
   • Social Insurance Registration: Register the company and employees with the General Organization for Social Insurance (GOSI).
7. Additional Licenses and Permits
   • You may need further licenses or permits based on your business activities.
   • Registering an LLC in Saudi Arabia is a structured process that requires careful adherence to the legal framework. It offers significant benefits, including liability protection and a straightforward operational framework.

Learn about: Saudi Company Register: What Is The Best Process?

In conclusion, establishing a limited liability company saudi arabia offers entrepreneurs significant advantages, including limited personal liability and operational flexibility. As the business landscape continues to evolve, an LLC remains a viable option for those looking to succeed in the Saudi market.

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