Limited Liability Company (LLC)
The Most Popular Business Structure in Saudi Arabia
A Limited Liability Company (LLC) is the most common and flexible business structure in Saudi Arabia. It offers limited liability protection to shareholders while allowing foreign ownership up to 100% in most sectors. LLCs are ideal for small to medium-sized businesses looking for a balance between flexibility and protection.
Minimum Capital
SAR 500,000 (varies by activity)
Ownership Structure
2-50 shareholders, 100% foreign ownership allowed
Liability
Limited to capital contribution
Setup Time
2-4 weeks
Advantages
- Limited liability protection for shareholders
- 100% foreign ownership allowed in most sectors
- Flexible management structure
- No minimum number of Saudi employees required initially
- Can engage in multiple business activities
- Easier to transfer ownership shares
- Lower capital requirements compared to JSC
Considerations
- Cannot offer shares to the public
- Maximum 50 shareholders
- Some activities require Saudi partner
- Annual audit requirements
Requirements
- Minimum 2 shareholders (can be individuals or companies)
- Memorandum and Articles of Association
- MISA license for foreign investors
- Commercial Registration (CR)
- Chamber of Commerce membership
- Municipal license
- GOSI registration for employees
Ideal For
Small to medium enterprises
Foreign investors entering Saudi market
Joint ventures between local and foreign partners
Professional services firms
Trading and distribution companies
Setup Process
Name Reservation
Reserve your company name through the Ministry of Commerce portal
MISA License
Apply for investment license from Ministry of Investment (for foreign investors)
Draft Articles
Prepare Memorandum and Articles of Association
Capital Deposit
Deposit minimum capital in a Saudi bank
Commercial Registration
Obtain CR from Ministry of Commerce
Additional Licenses
Obtain municipal license, Chamber membership, and sector-specific permits