Limited Liability Company (LLC) Formation Saudi Arabia | Mehwar Al Madar
Most Popular Entity
100% Foreign Ownership

Limited Liability
Company (LLC)

The gold standard for foreign investors. An LLC offers liability protection, operational flexibility, and 100% ownership without a local sponsor.

Legal Type

Limited Liability Co.

Standard
Shareholders 1 (Single Owner)
Liability Limited to Capital
Activity Trading / Service
Capital (Service) 0 SAR
100% FOREIGN OWNERSHIP
NO LOCAL SPONSOR
SINGLE SHAREHOLDER LLC
MISA LICENSE
100% FOREIGN OWNERSHIP
NO LOCAL SPONSOR
Choose Your Vehicle

LLC vs Branch Office

Most investors choose an LLC for its liability protection. A Branch is an extension of the parent company.

Recommended

LLC (Subsidiary)

  • Liability limited to share capital.
  • Can engage in all activities (Trading/Service).
  • Independent legal entity.
  • Eligible for government tenders.

Branch Office

  • Parent company bears 100% liability.
  • Limited to parent company activities.
  • Faster setup (No AoA required).
  • Good for executing a specific contract.

LLC Key Features

Shareholders

Ownership Structure

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1 – 50 Owners

  • Minimum 1 Shareholder
  • Can be Individual or Corp
  • 100% Foreign Allowed
  • No Local Partner Needed

Capital Req.

Investment Amount

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Flexible Capital

  • Services: 0 SAR Min.
  • Industrial: Based on Project
  • Trading: 27M SAR*
  • *Exemptions apply for SMEs

Management

General Manager

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GM Roles

  • Can be Foreigner
  • Must be Resident (Iqama)
  • Power of Attorney
  • Bank Signatory
Formation Steps

LLC Setup Roadmap

01

MISA License

Issuance of Investment License

02

AoA

Drafting Articles of Association

03

CR Issuance

Commercial Registration

04

Files Open

Labor, Tax & Social Insurance

05

Bank Acc.

Corporate Account Opening

Why Investors Choose Us

AoA Expertise

We draft compliant Articles of Association (AoA) tailored to your governance needs, not just generic templates.

Fast-Track CR

We expedite the Commercial Registration process, often securing it within 24 hours of MISA approval.

Post-Setup Support

We don’t just form the company; we handle your GM Visa, file opening, and initial Saudization plan.

LLC Formation FAQ

For most Service and Industrial licenses, there is 0 minimum capital requirement. However, for Trading licenses, the standard requirement is 27 Million SAR, though exemptions exist for international companies.
No. Under the current foreign investment law, you can own 100% of the shares in an LLC for most activities (Services, Industrial, Trading, etc.). Read more
The entire process typically takes 2-4 weeks. MISA licensing takes 1-3 days, followed by the Commercial Registration and Articles of Association notarization.
Yes. Once the LLC is formed and files (Labor/Immigration) are opened, the company can issue block visas and sponsor expatriate employees (Iqamas).

Get Your CR Today

Fast-track issuance with Ministry of Commerce.

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