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Commercial Registration in Saudi Arabia: requirements, steps and fees under the new law

Since 3 April 2025 a new Commercial Register system has been in force: a single registration for the whole Kingdom with no expiry date, and an annual confirmation of details in place of renewal. This guide explains the options, steps and fees as published by the Ministry of Commerce.

Last updated: 4 November 2026

What has changed under the new Commercial Register Law?

  • One registration for the Kingdom: branch registrations have been abolished, and you do not need to specify a city for the registration [1][2].
  • No expiry date: an annual electronic confirmation of details has replaced renewal. If you do not confirm your details, the registration is suspended, and a suspended registration is struck off after one year [1][2].
  • Licence deadline: activity licences must be obtained within 90 days of registration, and the licensing authority may extend this period [1].
  • Linking a bank account to the registration is now a requirement of the law [1].
  • Existing branch registrations have 5 years from the law's entry into force to regularise their status [3].

Sole proprietorship or company?

A sole proprietorship is owned by one person, who is liable for its obligations with all of their assets. Its requirements, as stated on the service page: you must be at least 18 years old, not be a government employee, not already hold a sole proprietorship registration, and have the licensing authority's consent if the activity requires prior licensing [4].

A limited liability company (LLC) is founded by one or more persons, and each partner's liability is limited to their share. The service page does not state a minimum capital [5].

A simplified joint stock company (SJSC) is founded by one or more persons; its shares are tradable, and a single shareholder can manage it without a board of directors. The service also registers it automatically with Human Resources, Zakat, GOSI, the National Address and the Chamber of Commerce [6].

If you work alone in a freelance profession without premises or employees, the free Freelance Document may be enough.

Steps to obtain a Commercial Registration

The service is completed online through the Saudi Business Center platform (business.sa), signing in with Nafath (National Single Sign-On) [4]:

  • Enter the owner's details, contact details and address.
  • Select the activities, indicate whether you will conduct e-commerce, and enter the capital and the trade name.
  • Enter the address and the manager, then confirm the declaration and submit.
  • Obtain the required approvals, then pay via SADAD or card.
  • The registration is issued and automatically recorded with the relevant authorities.

Note: in March 2026 a Council of Ministers decision merged the body that operates the Saudi Business Center platform into a new entity named the Saudi Center for Competitiveness and Business; the platform address remains business.sa [7].

Commercial Registration fees as published by the Ministry of Commerce

  • Sole proprietorship: service fee SAR 500, and annual confirmation of details SAR 500 [4][8].
  • Limited liability company: SAR 1,200 for registration and SAR 500 for publication, plus 15% VAT [5].
  • Simplified joint stock company: SAR 1,600 for registration and SAR 500 for publication [6].

These service pages on the Ministry's website do not show a recent update date, so confirm the final amount on the payment screen. On top of this there is usually the National Address for businesses subscription and the municipal licence fees for your activity.

To estimate the full government cost for your project, use the setup cost calculator.

After obtaining the registration

  • Obtain the activity licence from Balady within the deadline if your activity requires one.
  • Register for VAT if your revenue exceeds the mandatory registration threshold, and for Zakat.
  • If you will hire staff: GOSI, Qiwa and Mudad.
  • Confirm your registration details every year so that it is not suspended.
  • For companies: disclose beneficial ownership information, and file financial statements every year [9].

Frequently asked questions

Does the Commercial Registration have to be renewed every year?

Under the new law the registration no longer has an expiry date; renewal has been replaced by an annual electronic confirmation of details. Failing to confirm suspends the registration, and a suspended registration is struck off after one year [1].

Can a government employee open a Commercial Registration?

The Ministry of Commerce service pages for sole proprietorship registration and for company formation require that the applicant is not a government employee [4][5].

Do I need a feasibility study to obtain a Commercial Registration?

The Commercial Registration service does not require a feasibility study. However, some funding bodies do require one, such as the Saudi Industrial Development Fund (SIDF). See the funding guide.

Sources

  1. Commercial Register Law and Trade Names Law enter into forceSaudi Press Agency · 2025-04-03
  2. Key features of the new Commercial Register LawMinistry of Commerce · 2024-09-17
  3. Council of Ministers Decision No. 237 approving the two lawsUmm Al-Qura Gazette · 2024-10-04
  4. Sole proprietorship registration serviceMinistry of Commerce · accessed 2026-11-04
  5. Limited liability company formation serviceMinistry of Commerce · accessed 2026-11-04
  6. Simplified joint stock company formation serviceMinistry of Commerce · accessed 2026-11-04
  7. Council of Ministers Decision No. 662 merging the two centresUmm Al-Qura Gazette · 2026-03-13
  8. Annual confirmation of sole proprietorship details serviceMinistry of Commerce · accessed 2026-11-04
  9. Filing financial statements via the Qawaem platformMinistry of Commerce · 2025-12-16

Sources last checked: 4 November 2026.