Steps to Establish a Limited Liability Company (LLC) in Saudi Arabia
Introduction
Establishing a company in Saudi Arabia is an important step toward achieving financial independence and business growth, especially after recent government reforms and facilitation measures. Among the most common types of companies, the Limited Liability Company (LLC) stands out as a preferred choice for small and medium-sized enterprises due to its legal protection and flexible management structure.
In this article, we will guide you through the steps to establish a Limited Liability Company in Saudi Arabia, focusing on the requirements, fees, procedures, and overall setup costs, providing you with a complete and comprehensive guide
What is a Limited Liability Company (LLC)?
A Limited Liability Company (LLC) is a type of legal entity formed by one or more individuals, where each partner’s liability is limited to their share in the company’s capital. This structure is ideal for entrepreneurs who want to minimize personal legal and financial risks
Steps to Establish a Limited Liability Company in Saudi Arabia
Determine the Business Activity
The first step in establishing a company is to define the type of business activity you intend to carry out — whether commercial, industrial, or professional — as this will determine the required licenses and approvals
Reserve a Trade Name
Through the Saudi Business Center (SBC) platform, you can reserve a trade name electronically. Make sure the name is unique, not previously registered, and complies with the applicable regulations.
Prepare the Articles of Association (AoA)
You need to prepare a template of the Articles of Association for the LLC, which should include the details of the shareholders, capital amount, share distribution, management structure, company duration, and legal provisions
Submit the Application via the Ministry of Commerce
Submit your company registration application through the Saudi Business Center, and proceed to digitally notarize the Articles of Association
Obtain the Commercial Registration (CR)
Once the contract is approved, the Commercial Registration (CR) for the LLC will be issued. This serves as the official license authorizing the company to operate
Requirements for Establishing a Company in Saudi Arabia
Here are the main requirements for establishing a Limited Liability Company in Saudi Arabia:
The number of partners must be at least one (except for single-member LLCs) and no more than fifty.
The capital must be defined (there is currently no legal minimum requirement).
The company’s purpose must be clearly stated.
A legal physical address for the company must be provided.
One or more managers must be appointed
ost of Establishing a Limited Liability Company
he cost of setting up an LLC in Saudi Arabia varies depending on several factors, including:
Trade name reservation fee: Approximately SAR 200 for names in Arabic and SAR 500 for names in English.
1,775Contract publication and Commercial Registration fees- SAR
Licensing fees: Depend on the nature of the business activity
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CONTACT US
WE’RE Here For your
Company ForMAtion
Call Us
(009) 66560719497
EMAIL ID
alshatwi.law@gmail.com
ADDRESS
Riyadh - Al-Rasis Tower, Al-Olaya Main Street,8 th floor, Office No. 7