Annual Running Costs of a Company in Saudi Arabia 2026

By Ishita Roy, Business Consultant, Noble Core · Updated October 2026

Most founders budget carefully for the setup and then discover that the second year has its own calendar of fees, filings and renewals. None of them is large on its own. Together, and with payroll added, they decide whether a Saudi entity stays in good standing or slips into suspension. This guide lists every recurring cost a foreign-owned LLC or branch carries after incorporation, which authority charges it, how it is calculated and when it falls due. Where a fee is fixed by regulation, we state it and name the source. Where it is calculated per case, we say so and point you to the portal that calculates it, because a guessed government fee is worse than no number at all.

If you are still at the incorporation stage, start with our guide to company formation in Saudi Arabia, which covers structure, capital and the full setup sequence. This article picks up from the day your Commercial Registration is issued.

Annual running costs at a glance: the 2026 table

The table below is the core of your annual budget. It separates fixed official fees from items that are calculated on a platform, so you know which numbers can go straight into a spreadsheet and which need a live quote.

Recurring item	Authority	Fee or basis of calculation	Frequency
CR annual confirmation (LLC)	Ministry of Commerce	SAR 1,200	Every 12 months
CR annual confirmation (JSC or simplified JSC)	Ministry of Commerce	SAR 1,600	Every 12 months
CR annual confirmation (partnerships)	Ministry of Commerce	SAR 1,000	Every 12 months
CR annual confirmation (sole proprietorship)	Ministry of Commerce	SAR 500	Every 12 months
Chamber of Commerce membership	Chamber of Commerce	Free for the first 3 years, then SAR 200 to 5,000 by class	Yearly from year 4
Investment registration annual update	MISA	Determined by the ministry upon approval	Yearly
Municipal (Balady) licence for premises	Balady platform	Calculated on Balady under the Municipal Services Fees Regulation	Licence valid 1 to 5 years
GOSI occupational hazards	GOSI	2% of contributory wage, paid by the employer	Monthly
Work permits and expat levy	Qiwa / MHRSD	Calculated when each permit is issued or renewed	Per permit term
Zakat or corporate income tax return	ZATCA	Zakat 2.5% of the Zakat base; income tax 20% on the non-Saudi share of profit	Yearly, within 120 days of year end
VAT returns	ZATCA	15% on taxable supplies	Monthly above SAR 40m supplies, otherwise quarterly

Two things stand out. First, the fixed government fees are modest: an LLC pays SAR 1,200 to the Ministry of Commerce and nothing to the Chamber until year four. Second, the large numbers are all variable and are driven by headcount and profit, not by your licence. That is where planning pays off.

Commercial Register annual confirmation under the new law

The Commercial Register Law and the Trade Names Law have been in force since 3 April 2025 (5 Shawwal 1446H). They changed how the register works in ways that matter for your yearly budget. There is now one national CR per trader, the CR number is the unified number that starts with 7, and the registration has no expiry date. Renewal as a concept has gone. In its place is an annual confirmation of your data every 12 months. The Ministry of Commerce announced the change on mc.gov.sa.

What the confirmation costs

• Sole proprietorship: SAR 500
• Partnerships: SAR 1,000
• Limited liability company: SAR 1,200
• Joint stock or simplified joint stock company: SAR 1,600

What happens if you miss it

The consequence is not a small late fee. If the confirmation is not completed within 90 days of the due date, the CR is suspended. If it stays suspended for one year, the registration is struck off. A suspended CR blocks a long chain of other services: bank mandates, government contracts, Qiwa transactions and new work permits can all stall. For a company with staff on payroll, that is a far greater cost than SAR 1,200.

Separately budget for any data changes during the year. A CR data change costs SAR 100, and an amendment to the articles of association costs SAR 1,500 plus SAR 100 plus VAT. Moving office, adding an activity or changing a manager will trigger one of these. Our pillar on the CR annual confirmation walks through the portal steps.

MISA annual update for foreign-owned companies

Since the Investment Law came into force in February 2025, foreign investors register with the Ministry of Investment (MISA) rather than holding a traditional MISA licence. For a first registration, MISA notifies the result within 10 working days of a complete file. After that, an annual update replaces the old licence renewal.

The fee for both registration and the annual update is, in MISA’s own words in the Investor Guide (13th edition, March 2026), determined by the ministry upon approval. We therefore do not print a number, and you should be cautious of anyone who does. Older figures that circulate online belong to the previous licensing regime and no longer apply. Ask for the amount in writing when your registration is approved and put it in your budget from that confirmed figure. You can read the current framework on misa.gov.sa, and our MISA registration guide explains the full process for foreign shareholders.

Keep the MISA record and the CR in step. When ownership, capital or activities change, both need updating, and a mismatch between the two is one of the most common reasons a later transaction is held. The annual update is the natural moment to check that they agree. For the renewal side specifically, see our page on MISA annual update and renewal.

Chamber of Commerce and the Balady licence

Chamber of Commerce membership

Under the implementing regulation of the Chambers Law (Articles 38 and 40), a business pays no Chamber subscription for the first 3 years after CR registration. From the fourth year, the subscription is SAR 200 to SAR 5,000 a year depending on the membership class. Many founders forget this line because it is genuinely zero at the start. Put a reminder in year three so the first invoice does not come as a surprise, and so that Chamber-certified documents (often needed for tenders and attestation) remain available.

Balady municipal licence

Every physical premises needs a municipal licence through the Ministry of Municipalities and Housing’s Balady platform. Fees are set by the Municipal Services Fees Regulation and are calculated on Balady itself, based on factors such as premises area, location and activity. A licence can be issued for 1 to 5 years. Because the calculation is case by case, no fee range is official, and we do not quote one. Run the calculation on balady.gov.sa for your actual unit before you sign a lease. Choosing a longer licence term reduces the number of renewal events, although it does not necessarily reduce the total fee.

Payroll costs: the largest line in the annual budget

For almost every operating company, staff costs dwarf every government fee in this guide combined. They break down into four parts.

1. Salaries and allowances. Set by contract and market rates. Contracts are documented on Qiwa.
2. GOSI contributions. Registration with the General Organization for Social Insurance is mandatory. The employer pays occupational hazards at 2% of the contributory wage for every employee, Saudi or non-Saudi, and Saudi employees also carry annuities and unemployment insurance contributions shared between employer and employee. Rates are published on gosi.gov.sa.
3. Work permits and the expat levy. Each non-Saudi employee needs a work permit issued through Qiwa under the Ministry of Human Resources and Social Development (MHRSD). The permit fee and the monthly levy are calculated by the platform when the permit is issued or renewed, so confirm the amount on Qiwa for your headcount. One exception is fixed: since 17 December 2025, establishments holding an industrial licence pay no expat levy.
4. Residency, medical insurance and end of service. Iqama renewals, mandatory health insurance and the accrued end-of-service benefit belong in the same budget line. Accrue end of service monthly rather than treating it as a surprise at contract end.

Nitaqat matters here too. Your Saudization band (Red, Low Green, Medium Green, High Green or Platinum) determines which Qiwa services you can use. A company in a green band can issue and renew work permits normally. Planning hires with the band in mind is part of controlling cost, because a hiring plan that drops the band can stall renewals for existing staff.

One budgeting habit makes the payroll line far more predictable: price each role on a fully loaded basis. That means salary plus allowances, plus GOSI, plus the Qiwa permit and levy for non-Saudi staff, plus residency, insurance and the monthly end-of-service accrual. When a hiring decision is made on the fully loaded number, the annual budget rarely needs revisiting mid-year.

Zakat, income tax and VAT obligations

The Zakat, Tax and Customs Authority (ZATCA) handles three recurring obligations for most companies.

Zakat and corporate income tax

A company owned by Saudi or GCC shareholders pays Zakat at 2.5% of its Zakat base. A foreign-owned company pays corporate income tax at 20% on the non-Saudi share of taxable profit. A mixed-ownership company files for both, in proportion to each group’s share. The return, and payment of any amount due, must be submitted within 120 days of the end of the financial year. For a December year end, that means 30 April. ZATCA publishes the deadlines and reminders on zatca.gov.sa. Our guide to income tax for foreign companies covers the calculation in more depth.

VAT returns

VAT is charged at 15%. Registration is mandatory once taxable supplies exceed SAR 375,000 in 12 months and optional from SAR 187,500. Businesses whose annual supplies exceed SAR 40 million file monthly. Everyone else files quarterly. Each return is due by the last day of the month after the period ends, so a quarter ending 31 March is filed by 30 April. VAT itself is not a cost to a fully taxable business, but the compliance work is: e-invoicing through Fatoora, bookkeeping and the filing itself. See our VAT registration guide.

Audited financial statements

Companies file annual financial statements with the Ministry of Commerce, and most need an external audit. Audit and accounting fees are professional fees that depend on transaction volume, so budget them as a market quote rather than a government charge.

A worked example: year two budget for a foreign-owned LLC

Here is how the fixed items look for a typical 100% foreign-owned LLC in its second year, with a leased office in Riyadh and a small team. Variable items are listed by how they are calculated so you can plug in your own figures.

Line	Fixed or variable?	Year two planning note
CR annual confirmation	Fixed: SAR 1,200	Set a reminder one month before the due date
Chamber of Commerce	Fixed: SAR 0 in years 1 to 3	From year 4, SAR 200 to 5,000 by class
MISA annual update	Set by MISA on approval	Use the figure confirmed in writing
Balady licence	Variable, calculated on Balady	Depends on premises area, location and term
GOSI occupational hazards	Fixed rate: 2% of wage	Monthly, every employee
Work permits and levy	Variable, calculated on Qiwa	Driven by non-Saudi headcount and Nitaqat band
Corporate income tax	Fixed rate: 20% of foreign share of profit	Only payable on profit; return within 120 days
VAT filing	Quarterly below SAR 40m supplies	4 returns a year, each due the month after the quarter
Audit and bookkeeping	Professional fee	Get a written quote early in the year
Office rent	Market rate	Lease registered on the Ejar network

Read the table as a structure, not a price list. The fixed government fees for this company add up to SAR 1,200 plus the MISA update in year two. Everything else scales with people, space and profit. That is good news: a lean company in Saudi Arabia carries a low fixed compliance cost, and the bigger lines only grow when the business does.

How a branch of a foreign company differs

A branch carries the same calendar with a few differences. It has no separate share capital and no shareholders of its own, so the Zakat and income tax position follows the foreign parent: the branch is generally taxed at 20% on the profit attributable to its Saudi operations. It still confirms its CR every 12 months, still holds a MISA registration with an annual update, and still needs Balady, Qiwa and GOSI in place. The extra cost is usually documentary: the parent’s audited accounts, board resolutions and legalised documents are needed more often, so build the attestation time into your plan.

Costs that appear during the year without warning

Beyond the scheduled items, a few events trigger fees that founders rarely budget for.

• Changing CR data. A new address, manager or activity costs SAR 100 per change on the Ministry of Commerce platform.
• Amending the articles of association. A new partner, capital change or revised management clause costs SAR 1,500 plus SAR 100 plus VAT.
• Adding a branch register. Existing branch registers have a 5-year grace period under the new law, but a new location or structure change still needs proper registration.
• Bringing in new hires. Each new non-Saudi hire means a new work permit, residency, insurance and GOSI registration.
• Expanding premises. A larger or second unit changes the Balady calculation.
• Attestations and certified copies. Banks and tender committees often ask for Chamber-certified documents and updated CR extracts.

A practical rule: keep a contingency of a few months of the fixed compliance cost for these events, and log every change on the CR and MISA records at the same time so you only pay once.

The annual compliance calendar

Costs are easier to control when they sit on a calendar. For a company with a December financial year end and CR issued in, for example, June, the year looks like this.

• Every month: payroll, GOSI contributions, monthly levy where applicable, bookkeeping.
• End of April, July, October and January: quarterly VAT returns (or monthly returns if supplies exceed SAR 40 million).
• By 30 April: Zakat or corporate income tax return for the previous year, plus audited financial statements.
• Around the CR anniversary (June in this example): CR annual confirmation, and a good moment to complete the MISA annual update and check both records agree.
• Balady expiry date: renewal on the platform, timed to the licence term you chose (1 to 5 years).
• Each permit and iqama expiry: renew on Qiwa and Muqeem ahead of the date, never after.
• Year 3 anniversary: first Chamber of Commerce subscription becomes due in year 4.

Put every date into one shared calendar with a 30-day reminder. The single most expensive mistake on this list is a missed CR confirmation, because the 90-day suspension then freezes everything else.

Common mistakes to avoid

• Budgeting from old MISA licence figures. Registration and annual update fees are now set by MISA on approval.
• Treating the CR as something that expires. Under the law in force since 3 April 2025 it has no expiry date, but it must be confirmed every 12 months.
• Letting the CR confirmation pass the 90-day window and triggering suspension.
• Forgetting the Chamber of Commerce subscription that starts in year four.
• Copying a Balady fee range from the internet instead of calculating it on the platform for your own premises.
• Filing Zakat or income tax late because the 120-day window was counted from the wrong date.
• Planning hires without checking their effect on your Nitaqat band.
• Updating the CR after an ownership change but not the MISA record, or the other way round.
• Leaving end-of-service benefits unaccrued until an employee leaves.

How Noble Core keeps your Saudi company in good standing

Noble Core sets up and maintains foreign-owned LLCs, branches and regional headquarters in Saudi Arabia. After incorporation, our team handles the recurring compliance on your behalf: CR annual confirmation with the Ministry of Commerce, the MISA annual update, Balady renewals, Qiwa and GOSI administration, and coordination with your accountant for ZATCA filings. We complete the procedures on your behalf through the official portals and give you one calendar with every due date and every official fee confirmed in writing.

If you want a written annual cost plan and compliance calendar for your company, message our team on WhatsApp. Tell us your structure, headcount and CR date, and we will send a plan built from confirmed figures.

Frequently Asked Questions

What are the annual running costs of a company in Saudi Arabia in 2026?

The fixed government fees are modest: the Commercial Register annual confirmation costs SAR 1,200 for an LLC or SAR 1,600 for a joint stock company, and the Chamber of Commerce is free for the first 3 years. The largest costs are variable: payroll, GOSI at 2% occupational hazards, Qiwa work permits and levy, Balady, and Zakat or 20% income tax on the foreign share of profit.

Does a Saudi Commercial Registration still need to be renewed every year?

No. Under the Commercial Register Law in force since 3 April 2025, the CR has no expiry date. Instead, the company confirms its data every 12 months through the Ministry of Commerce. If the confirmation is not completed within 90 days of the due date, the CR is suspended, and after one year of suspension it is struck off the register.

How much is the CR annual confirmation fee for an LLC?

An LLC pays SAR 1,200 for the annual confirmation. A joint stock or simplified joint stock company pays SAR 1,600, partnerships pay SAR 1,000 and a sole proprietorship pays SAR 500. These are Ministry of Commerce fees. Separate charges apply to changes during the year, for example SAR 100 for a CR data change.

What does the MISA annual update cost for a foreign-owned company?

MISA states in its Investor Guide (13th edition, March 2026) that registration and annual update fees are determined by the ministry upon approval. Since the Investment Law took effect in February 2025, older MISA licence figures no longer apply. Ask MISA to confirm the amount in writing when your registration is approved and budget from that confirmed figure.

When does the Chamber of Commerce subscription start?

Under the implementing regulation of the Chambers Law, there is no subscription for the first 3 years after CR registration. From the fourth year, membership costs SAR 200 to SAR 5,000 a year depending on the class. Set a reminder in year three so the first invoice is planned and Chamber-certified documents stay available for banks and tenders.

How much corporate income tax does a foreign-owned company pay in Saudi Arabia?

Corporate income tax is 20% on the non-Saudi share of taxable profit. Saudi and GCC shareholders’ shares are subject to Zakat at 2.5% of the Zakat base instead. The annual return and payment are due within 120 days of the financial year end, which is 30 April for a December year end, filed with ZATCA.

How often must a Saudi company file VAT returns?

VAT is 15%. Businesses with annual taxable supplies above SAR 40 million file monthly returns; all others file quarterly. Each return is due by the last day of the month after the period, so a quarter ending 31 March is filed by 30 April. Registration is mandatory once supplies exceed SAR 375,000 in 12 months.

Can Noble Core handle the annual compliance for my Saudi company?

Yes. Noble Core completes the recurring procedures on your behalf through the official portals: CR annual confirmation, the MISA annual update, Balady renewals, Qiwa and GOSI administration, and coordination with your accountant on ZATCA filings. You receive one compliance calendar with every due date and every official fee confirmed in writing before it is paid.