LLC Company Formation in Saudi Arabia

The shareholders of an LLC are liable for the debts of the establishment only to the magnitude of their respective interests in the shares of the LLC.

LLC is the most common form for entering joint ventures with Saudi partners; however, a Saudi partner is not required since there are no legal limitations on the percentage of foreign ownership.

Requirements for LLC company formation in Saudi Arabia

• The minimum capital investment required to establish an LLC is SAR 500,000 (USD 130,000).
• Minimum capital of an LLC with foreign participation is SAR 100,000 (USD 26,000) under the Foreign Investment Law.
• The required capital amount is increased to SAR 5,000,000 (USD 1,333,000) for industrial ventures and SAR 25,000,000 (USD 6,666,000) for agricultural projects respectively.
• Setting up an LLC company in Saudi Arabia must have a minimum of two and no more than fifty shareholders and is managed and represented by one or more managers. There is no necessity for any manager to be a Saudi national.
• The LLC must also have an auditor and where it has more than twenty shareholders, it must establish a Board of Controllers.
• A KSA LLC with more than twenty shareholders must have a supervisory board comprising of at least three members.

Setting up an LLC Company in Saudi Arabia

• Six months to form the company
• National shareholder not required
• Be able to rent office space in KSA
• Can buy property in Saudi Arabia
• Easy to setup an LLC in KSA for GCC Nationals
• Foreign investors can own a company in Saudi Arabia for certain industries without the need of a Saudi National.
• SAGIA regulates LLCs in Saudi Arabia

Memorandum of Association

For the government’s appropriate approval, acceptance and registration of a Limited Liability Company, the memorandum of association, and the LLCs governing documents should follow the Ministry of Commerce and Industry’s memorandum of association model.