While the Commercial Registration (CR) and Municipal License fees are the most visible costs of starting a business, several mandatory operational fees often catch new business owners by surprise. These costs are linked to the digital infrastructure required to operate legally in the Kingdom.
The following sections detail the recurring "hidden" costs that must be factored into your annual budget.
Mandatory Digital Subscriptions
In Saudi Arabia, holding a CR is not enough to hire staff or manage payroll. You must subscribe to specific government-linked portals. These are not one-time fees; they are annual subscriptions.
National Address (SPL):
Unlike the free residential version, commercial entities must pay to register their National Address.
Cost: Approximately SAR 500 to SAR 1,000 per year, depending on the legal entity type (Establishment vs. Company).
Impact: You cannot open a bank account or renew licenses without this.
Qiwa Platform:
This portal manages all labor contracts, Saudization ratings (Nitaqat), and employee transfers.
Cost: Approximately SAR 1,265 per year for small to medium enterprises.
Muqeem Portal:
Required for issuing and renewing Iqamas (residency permits) and print visas.
Cost: The "Basic" package starts around SAR 1,100 to SAR 1,500 per year.
Note: This fee covers the access to the portal. You still pay the actual government fees (e.g., SAR 650 for Iqama renewal) separately within the portal.
Mudad Platform (Payroll Protection):
You are legally required to pay salaries through the Wage Protection System (WPS). Mudad is the platform that tracks this compliance.
Cost: Fees are tiered based on the number of employees. For a small business (1–9 employees), expect to pay around SAR 460 to SAR 500 per year. Prices increase as headcount grows.
Location and Municipal Compliance
Beyond the basic license fee, physical locations incur specific compliance costs.
Commercial Waste Fee:
The municipality charges a separate fee for waste collection, which is often not included in the initial license estimate.
Cost: Varies by activity. A standard office may pay SAR 1,200, while a restaurant or coffee shop could pay SAR 5,000 to SAR 10,000+ annually.
Civil Defense Permit:
To obtain the municipal license, you need Civil Defense approval.
Hidden Cost: This often requires purchasing specific safety equipment (smoke detectors, fire extinguishers, cameras) from approved vendors. The equipment and installation can cost between SAR 2,000 and SAR 10,000 for small shops, depending on the strictness of the requirements for your specific activity.
Signage Compliance:
Shop signs must strictly adhere to municipal codes (e.g., 50% Arabic text size).
Risk: If your sign is installed incorrectly or fails the aesthetic inspection, you will be fined and forced to replace it at your own expense.
Financial and Banking Costs
Corporate Bank Accounts:
While opening an account is often free, some banks charge "maintenance fees" (e.g., SAR 50–100/month) if your average balance falls below a certain threshold (often SAR 5,000 to SAR 20,000).
POS Terminals:
If you take card payments, you will need a Point of Sale (POS) machine.
Cost: Banks may charge a setup fee or a monthly rental fee if your transaction volume is low. Additionally, transaction fees apply (approx. 0.8% for Mada cards, higher for Visa/Mastercard).
Workforce "Shadow" Costs
Hiring staff involves costs beyond the salary and basic visa fees.
Medical Insurance:
Mandatory for all non-Saudi employees and their dependents.
Cost: Prices fluctuate based on age and marital status. A standard policy for a single employee typically ranges from SAR 1,200 to SAR 3,000 per year, but this can double for older employees or married staff with families.
GOSI (Social Insurance):
Saudi Employees: The employer must contribute 9% of the employee's total salary to GOSI monthly (plus 2% for occupational hazards in some cases).
Non-Saudi Employees: The employer pays 2% of the salary for Occupational Hazard coverage.
