The Financial Truth

Cost of Registering a Company
in Saudi Arabia (2026 Breakdown)

Marketing says “2,000 SAR.” Reality says something else. We expose the hidden fees, subscription costs, and the real budget you need for 2026.

5 Min Read
Jan 2026 Updated

The Short Answer

While the MISA License headline fee is just 2,000 SAR, the Total Government Fees for Year 1 usually total around 12,000 – 15,000 SAR. If you include professional legal fees, office address allocation, and your General Manager’s visa, a safe Year 1 budget is 45,000 – 65,000 SAR.

One of the biggest frustrations for foreign investors is the “Drip Feed” of invoices. You pay one fee, think you are done, and then another portal asks for payment.

To help you plan, we have broken the costs down into three categories: The Fixed Government Fees, The Operational Costs, and The Hidden Subscriptions.

1. The “Fixed” Government Fees (Year 1)

These are mandatory payments made directly to government portals (SADAD). These costs are non-negotiable.

Item Cost (SAR) Notes
MISA License 2,000 Base fee (Year 1 only)
Commercial Registration (CR) 1,200 Main CR (Per Year)
Chamber of Commerce 2,200 2nd Class Membership
National Address (Wasel) 1,000 Saudi Post Fee
TOTAL GOVT FEES ~6,400 SAR Excludes subscription fees

2. The “Hidden” Subscription Fees

This is where most budgets fail. To access government portals (which you need to operate), you often need an active paid subscription.

MISA Subscription

~10,000 SAR

Promotional rate for Year 1. Required for services.

Qiwa (Labor Portal)

1,265 SAR

Required per entity to issue visas.

3. The “Operational” Costs

You cannot have a company without a General Manager (GM) and an address.

Operational Cost Estimator

GM Visa Issuance 2,000 SAR
GM Iqama & Insurance (Yearly) ~9,500 SAR
Medical Test (Gamca) ~300 SAR
Virtual Office / Co-working 4,000 – 15,000 SAR
Note: Office costs vary wildly. A simple “Ejari” contract for licensing can be cheap, but a real physical office in Riyadh starts at 40k SAR/year.

The “Year 2” Shock

Warning: Budget for Renewal

We value transparency at Mehwar Al Madar. You must know that Year 2 is more expensive than Year 1. Why?

The MISA License fee jumps from the promotional 2,000 SAR to the standard 62,000 SAR (License + Subscription). You must factor this into your 3-year P&L.

Professional Fees (Consultancy)

Unless you fly to Riyadh to do this yourself (which requires Arabic fluency), you will hire a partner. Professional fees cover:

  • Drafting the Articles of Association (AoA).
  • Attesting documents at the Ministry of Foreign Affairs (MOFA).
  • Opening the Corporate Bank Account.

Check our packages here: Business Setup Pricing.

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