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Running costs

What a Saudi company costs to keep each year

Setup gets the attention and the spreadsheet. The recurring lines decide whether a small Saudi entity is worth holding open, and the first of them is the same size as the setup fee.

Last checked

The annual confirmation of your main commercial registration data costs SAR 1,200 for a limited liability company, SAR 1,600 for a joint stock or simplified joint stock company, and SAR 1,000 for a partnership. Each branch adds SAR 1,000 to 1,600. On top sit the Ministry of Investment's annual update, whose fee is set by the ministry on approval, and the labour ministry's charges for every foreign employee.

The fee that mirrors your setup fee

Put the two numbers side by side and the design is obvious: establishing an LLC costs SAR 1,200 and confirming it each year costs the same. The service is immediate, and it is what keeps your registration data current on the Ministry of Commerce record. The ministry lists two conditions: the commercial registration must be active, and a foreign company needs an investment licence valid for at least 30 days.

Branches multiply the line. For a retail operation with a main registration and two branches, the Commerce side of a quiet year is the main confirmation plus two branch confirmations of between SAR 1,000 and SAR 1,600 each, before anything productive has happened.

Recurring and occasional Ministry of Commerce fees Modify registration data SAR 100, Commercial register extract SAR 100, Annual confirmation, partnership SAR 1,000, Annual confirmation, LLC SAR 1,200, Publish extraordinary assembly resolutions, before VAT SAR 1,500, Annual confirmation, joint stock SAR 1,600. Source: Ministry of Commerce service pages. Modify registration data SAR 100 Commercial register extract SAR 100 Annual confirmation, partnership SAR 1,000 Annual confirmation, LLC SAR 1,200 Publish extraordinary assembly resolutions, before VAT SAR 1,500 Annual confirmation, joint stock SAR 1,600
Source: Ministry of Commerce, Annual Confirmation of the Company's Main Commercial Registry Data
Show the numbers
ServiceFee
Modify registration dataSAR 100
Commercial register extractSAR 100
Annual confirmation, partnershipSAR 1,000
Annual confirmation, LLCSAR 1,200
Publish extraordinary assembly resolutions, before VATSAR 1,500
Annual confirmation, joint stockSAR 1,600

The MISA update stays open

The annual registration update is a real obligation with an unpriced budget line: the guide says the fee is set by the ministry on approval, on the same terms as the original registration, with an estimated processing time of 5 working days. The condition for the service is that the home-country registration stays valid, which deserves its own calendar entry if your parent company renews on a different cycle.

The two ministries also depend on each other. Commerce will not confirm a foreign company's data without a valid investment licence, and the investment update will not go through if the home registration has lapsed. One missed renewal abroad can hold up both.

Staff costs repeat too

For each foreign employee the labour ministry charges a work licence fee of SAR 100 a year and the financial equivalent: SAR 700 a month where foreign staff do not outnumber Saudi staff, and SAR 800 a month where they do. Using the ministry's printed annual amounts, that is between SAR 8,500 and SAR 9,200 per foreign employee per year. Even a single foreign employee costs more in these charges each year than any published Commerce fee above. The staff cost guide explains the tiers.

A worked year two

A foreign-owned LLC with one registration and three foreign employees, none of them matched by Saudi staff. In year one it paid SAR 2,155 in published Commerce setup fees. In year two, Commerce asks for the annual confirmation of SAR 1,200. With no Saudi staff, the labour charges for the three foreign employees come to SAR 27,600; had each been matched by a Saudi hire, they would be SAR 25,500. The MISA update is added when its fee is notified. Residence permits, medical insurance and social insurance follow, without official amounts to quote.

The small fees that add up in a busy year

Changing anything on the record costs SAR 100, and a commercial register extract is SAR 100. Neither matters alone. A year with a new manager, an address change, a capital increase and three banks each asking for a fresh extract turns them into a line item.

For joint stock companies there is a larger one waiting: publishing extraordinary general assembly resolutions costs SAR 1,500 plus VAT. If your structure means shareholder resolutions get published more than once a year, that is a reason to look hard at whether you need a joint stock company at all.

What a consultancy says about the rest

Two recurring costs sit outside the ministries' published pages. A Saudi setup firm says the Chamber of Commerce subscription varies by region and capital, and that labour platform fees vary by nationality, headcount and Saudization. Neither description is a number. Ask for both as written quotes with your actual capital and headcount, and keep them separate from the fixed fees above.

An annual checklist

  • Annual confirmation for the main registration, and one for every branch.
  • Investment licence validity checked before the confirmation is due.
  • MISA annual registration update, with the fee confirmed on approval.
  • Home-country registration kept valid, because the MISA update depends on it.
  • Work licences and the financial equivalent for every foreign employee, at the rate your Saudi headcount allows.
  • Chamber subscription, quoted against your registered capital and region.
  • VAT returns, if the company is registered. See the VAT guide.

When each recurring line falls due

Recurring government obligations, their amounts and their timing
ObligationAmountTiming
Annual confirmation, LLCSAR 1,200Each year; immediate once paid
Annual confirmation, each branchSAR 1,000 to 1,600Each year, per branch
MISA annual updateset by the ministry on approvalAbout 5 working days; pay within 15 business days of notification
Work licence, per foreign workerSAR 100 a yearOn issue or renewal, payable every three months
Financial equivalent, per foreign workerSAR 700 a month or SAR 800 a monthWith the work licence

The MISA update carries the same penalty as registration: if the fee is not paid within 15 business days of notification, the guide says the registration is considered void. A missed email in year three can undo a company that has been trading for two years, so route the ministry's notifications to more than one person.

Frequently asked questions

How much is the annual CR renewal for an LLC?

The annual confirmation of the main commercial registration data is SAR 1,200 for a limited liability company.

Do branches pay separately?

Yes. Each branch confirmation is SAR 1,000 to 1,600, depending on the company type.

Is there an annual MISA fee?

There is an annual update. Its fee is set by the ministry on approval, so no fixed amount can be quoted in advance.

What is the biggest recurring government cost?

For a company with foreign staff it is usually the financial equivalent, charged for each foreign worker: SAR 700 a month or SAR 800 a month.

Every figure on this page is taken from the issuing body’s own page, with the date that page was opened. How the figures are checked