How to Establish an LLC Company in Saudi Arabia? A Complete 2025 Guide

Establishing an LLC company in Saudi Arabia is one of the most strategic moves for investors and entrepreneurs seeking to expand into the Kingdom’s rapidly growing economy. As a business structure, the Limited Liability Company (LLC) offers flexibility, credibility, and legal protection — making it the most popular choice among local and foreign investors.

Governed by the Saudi Ministry of Commerce, the LLC model ensures that the company operates as an independent legal entity, safeguarding the personal assets of its owners while promoting efficient business growth.

What Is Llc company in Saudi Arabia?

According to the Saudi Ministry of Commerce, the LLC company meaning refers to a Limited Liability Company established by one or more individuals or corporate entities. It is a distinct legal entity with its own independent financial liability, separate from that of its owners or partners.

In an LLC company in Saudi Arabia, the company itself bears full responsibility for any debts or obligations resulting from its activities, while the owners or partners are only liable to the extent of their capital contributions. This structure provides both flexibility and protection, making it one of the most popular forms of business setup in the Kingdom.

What Are The Steps to Register an LLC Company in Saudi Arabia?

The registration of an LLC company in Saudi Arabia is conducted through the Ministry of Commerce following a clear and streamlined process. To establish your LLC company in Saudi Arabia, you need to complete several essential steps via the Saudi Business Center Platform:

1. Visit the Saudi Business Center Platform, select the “Establish a Limited Liability Company (LLC)” service, and click “Start Service.”
2. Specify the number of partners and determine the legal form of your LLC company in Saudi Arabia, then proceed with the application.
3. Enter the necessary information, including the company’s duration, registered address, business activities, objectives, partner details, and commercial registration data.
4. Finalize your LLC company in Saudi Arabia registration by submitting company information, management details, articles of association, and a summary of the application for final review.

Read also: How to Start a Business in Saudi Arabia in 2025?

What Are The Conditions for Establishing an LLC Company in Saudi Arabia?

To establish an LLC company in Saudi Arabia, several essential conditions must be met when submitting a formation request. These include:

• The applicant must be at least 18 years old.
• If the applicant is a minor, a legal guardianship deed must be submitted.
• Government employees are not permitted to be partners.
• If one of the partners is a legal entity, its commercial registration must not be revoked, suspended, or expired.
• If the company is of a professional nature, the following must be ensured:
  • All partners must hold a valid professional license.
  • For mixed companies, the licensed Saudi partner must own at least 25% of the capital.
  • The licensed partners must collectively hold at least 70% of the ownership.

Check out: What is The Limited Liability Company Saudi Arabia?

What Are The Required Documents to Establish an LLC Company in Saudi Arabia?

To complete the registration process for an LLC company in Saudi Arabia, the following documents are required:

• A legal authorization document if one of the partners is a government entity, charitable organization, foundation, or endowment, allowing it to establish or participate in a company.
• A license from the Saudi Central Bank if the business activity requires it.
• Issuance of the commercial registration and articles of association.
• Optionally, issuance of an instant commercial license if the investor desires.
• Creation of a business file with the Ministry of Human Resources and Social Development.
• Tax registration through the Zakat, Tax, and Customs Authority (ZATCA).
• Registration with the General Organization for Social Insurance (GOSI).
• Registration of the company’s national address through Saudi Post (SPL).
• Membership registration with the local Chamber of Commerce according to the company’s location.

How Much Is LLC in Saudi Arabia cost?

According to the Saudi Ministry of Commerce, the service fee for establishing an LLC company in Saudi Arabia is 1,700 SAR, in addition to a 15% value-added tax (VAT).

Best Company Formation Lawyer in Saudi Arabia

Lawyers play a crucial role in saving business owners and entrepreneurs significant time and effort by handling all necessary legal procedures, particularly those related to company formation in Saudi Arabia.

Etqan Law Firm, one of the leading law firms in Saudi Arabia, is home to a team of expert company formation lawyers who assist investors in establishing their businesses efficiently, accurately, and in full compliance with Saudi regulations.

Beyond company formation, the firm provides a wide range of legal services in Saudi Arabia, including litigation, legal consultations, debt collection, labor law, franchise law, and contract drafting, ensuring comprehensive legal support for every client.

Learn about: Article 109 Saudi Labor Law: Employee Leave Rights & Benefits

Conclusion

forming an LLC company in Saudi Arabia opens the door to a stable, investor-friendly market supported by modern infrastructure and clear legal frameworks. With the right legal guidance — such as that provided by Etqan Law Firm — entrepreneurs can navigate every step of the process efficiently, from registration to licensing and compliance.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +966550600204, +966551020060.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

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