The country, through Vision 2030, encourages the setting up company in Saudi Arabia for foreign investors. Thus, you can benefit now due to current facilities and rules that enhance the process.
In this article, we will explain how to start your business in the country, taking advantage of these benefits. Let us see:
1. Why choose Saudi Arabia for your business startup?
The Kingdom of Saudi Arabia offers strategic access to most of the countries of the Asian, European, and African continents. Also, the government has established rules that ease the setting up company in Saudi Arabia, increasing foreign ventures. In this sense, since 2016, the Vision 2030 program has been active, which, in addition to the above, encourages the participation of the national private sector.
In this case, the program opened the national economy to foreign investment through key initiatives and chances. Likewise, investors and people who want to do a business setup in KSA will find great benefits. Some of the actions to increase foreign investment in the country are the following:
- Mechanisms that ease and simplify the business setup in Saudi Arabia.
- Obtaining credits through the solvency law and the guaranteed transactions law.
- Resolution of insolvency and financial reform.
- Protect minority investors.
- Facilities for the fulfillment of contracts.
- Online platforms that allow the approval of construction permits.
2. Know more about 100% foreign owned business setup
To setting up company in Saudi Arabia, you must comply with the legal requirements and administrative processes. Still, through the programs applied by the authorities, now the process is a little easier. Thus, to ensure correct set up it is best to work with proper expert advice on this process.
2.1 Start by planning
The first step for setting up company in Saudi Arabia is to plan properly the features of the business. At this stage, you should think about and determine various aspects related to your company, such as the name and type of entity. One of the most common and recommended entity types is a Limited Liability Company (LLC).
This type of business has an important advantage over others, the chance for registration by a single shareholder. However, in Saudi Arabia, you will be able to find other types of entities and only you can define which one is right for you.
Also, you must prepare all the documents required by the authorities for the company formation in Saudi Arabia. Therefore, be sure to collect the following in time:
- Memorandum and Articles of Association.
- Certificate of incorporation.
- Business License.
- Directory resolution.
- Power of Attorney.
2.2 Start the procedures and applications
The next step in setting up company in Saudi Arabia is to start with the right procedures. In this case, in Company Formation Saudi we can go with you all over the process from the beginning so that you understand each procedure. This way, it ensures that you comply with all the necessary and eases the entire process from start to finish.
2.2.1 Investment license
You will need to file a proper application with the Saudi Arabian General Investment Authority (SAGIA). This is the only authority that can authorize 100% foreign-owned companies to operate in the country. In this case, you must submit a report with all the information on the investment, such as financial information and the nature of the business.
After completing the forms and submitting the report, SAGIA will issue a pre-approval certificate if you meet all the requirements.
2.2.2 Bylaws and company name
The next step in Saudi Arabia company formation is to file the bylaws and register the business name. You must deliver the bylaws to the Ministry of Commerce and Investment, for its approval and a notary public must sign it. On the other hand, the name must be reserved at the Unified Center for approval before continuing the process.
After ending these processes, you must publish both the name and the statutes in the newspaper.
2.2.3 Registration in MERAS
This program makes it easy to setting up company in Saudi Arabia so that you can obtain Business Registration (CR). In addition to this operating license, you will also need to obtain a tax identification number. Also, you must submit the CR request within 30 days from the registration of the statutes with the public notary.
Moreover, the persons listed as part of the company must deposit a certificate of membership in the Chamber of Commerce and Industry. You must submit the whole application to the Ministry of Commerce and Industry of Saudi Arabia (MOCI).
In the same way, you must register your company for the following:
- Registration with the local municipality.
- Ministry of Labor and Social Development (MLSD).
- General Organization for Social Insurance (GOSI).
- General Authority for Zakat and Tax (GAZT).
2.2.4 Foreign trade license
The foreign business investment license can be got from SAGIA by giving the required documents. Thus, you will be able to start hiring workers, signing contracts, issuing invoices, and more. This way, you can ensure the proper functioning of your company and comply with local laws.
2.2.5 Company seal and registration in the Chamber of Commerce
The seal of the company must contain its CR number and the company name, which will allow it to carry out various activities. Likewise, applicants for the business setup in Saudi Arabia must present the Certificate of Membership. This must be done within 30 days of obtaining the CR.
2.3 Bank account
You will need to open a bank account at any of the banks in the country within 3 months of receiving the business certificate. This condition is vital to deposit the share capital, then the account becomes an active one. However, this process can take up to 3 months from opening to the issuance of account numbers.
After completing the processes for the company formation in Saudi Arabia, you must ensure that you comply with the regulations. This includes hiring Saudi staff, obtaining Iqama, making financial statements, filing taxes, and more. Our company can assist you in each of these procedures for the proper creation of your business.
3. Why choose Company Formation Saudi for your business setup?
With more than 25 years of experience in assisting with the setting up company in Saudi Arabia, we are your best ally. Our clients testify to the success and efficiency of foreigners and nationals to start their businesses.