Open a Business branch in Saudi Arabia with our Services
If you want to open a branch in Saudi Arabia, you will find the process to be laborious, but we can help you simplify it. This way, we can assure you that opening a new branch of business in this country will be a quick and satisfactory process. Furthermore, with our help, your company will have a prominent presence in Saudi Arabia, due to its great benefits.
In this way, your branch will be a safe reflection of the functions and activities of your parent company. Moreover, with our experience, you will be able to promote and generate business for your main company. This is also because when you open a branch, you will have 100% ownership of it, as well as not need a local partner.
Thanks to the Foreign Investment Law of Saudi Arabia, you will also own the properties required for your branch. In addition, you will be able to keep the same incentives that are granted to national companies. Thus, when you open a branch in Saudi Arabia you will have a more direct presence than a commercial agent.
Company Formation Saudi will help you with your compliance
The SAGIA (Saudi Arabia General Investment Authority) is the one that establishes the initial approval to be able to open a branch. Then the Company Regulations and the Foreign Investment Regulations grant the permission to establish it. One of our primary jobs is to guide you through these first steps to the end of the process.
Similarly, if you want to open a branch owned by GCC nationals, it needs the approval of the Ministry of Trade and Investment. Likewise, this ministry acts following the Company Regulations to support the development of branches. Therefore, we are the link that you need so that you can fulfill the requirements of the aforementioned ministry.
In addition, your business branch may engage in business activities covered by your permit. Also, a company that wants to open a branch needs a base capital of SAR 500,000. Also, a company must open a new branch in an area with easy access to the activity to be carried out.
We have the best business advice for your new branch in Saudi Arabia
Due to our experience helping businesses to open a branch, we provide you with advice on the following aspects. For example, the branch must have the same name as the main company. Also, this is an extension of the main company, so you cannot decide regarding its activities.
Also, when you open a branch, it must have a legal address in a Saudi city. Thanks to this you will be able to obtain the benefit of avoiding double taxation.
This is because they are subject to the activities carried out by their parent company. Likewise, we can help you not only to open a branch but several, since foreign companies can do so. Otherwise, these subsidiaries are suitable for both medium and large companies.
For these and other reasons, we can provide personalized support to both foreign individual investors and interested companies. We offer you security in all these processes due to our vast experience in opening a new branch of business.
Open any type of branch with our professional help
In Saudi Arabia, you can open a branch of two types, each with particular characteristics. In any of the cases, our team is ready to advise you and make sure you are successful with the one you choose. These are:
When opening a new branch of business in Saudi Arabia, you can choose to make it permanent. In this case, it is an extension of the main company located in another country. One of the main requirements of SAIGA is that the initial capital must be SAR 500,000.
Advantages of a permanent branch
Opening a permanent branch in Saudi Arabia has certain advantages, among which are:
- Depending on the circumstances, the process can be straightforward.
- The process bears similarity to forming an LLC.
- You do not need articles of association.
- It has the possibility of carrying out projects in both the public and private sectors.
- It has a wide range of activities.
Disadvantages of a permanent branch
The disadvantages of opening a permanent branch are:
- Activities are limited by SAGIA.
- You cannot carry out promotional, marketing, and commercial activities. Only under conditions of Saudi participation and higher capitalization.
- You may not open a branch solely for promotional or representative activities.
Technical Scientific Services Office (TSSO)
If you want to open a branch of the TSSO type, you should know that it is through an agreement. The registered trade agency distribution agreement must be between a foreign manufacturing entity and a registered Saudi distributor. Also, this can only be applied to complex products.
Another point is that this branch can help the distributor with marketing and customer relations. However, you may not market or sell the product or generate income from it. Furthermore, the advantage when you open a branch of this type is that does not require capitalization.
Likewise, you must register a current distribution contract in the Department of Commercial Agencies of the Ministry of Commerce and Industry. This is another point where our specialists play an important role in simplifying this requirement for you.
Advantages of a TSSO
The opening of a new business branch of this type has its advantages, among which are:
- The establishment process is simpler than that of a company.
- It serves as market research for the main company.
- There is no required capital.
Disadvantages of a TSSO
Despite having certain disadvantages, our experts can advise you to alleviate some of them. The disadvantages when you open a branch of this type are:
- Limitation of complex products to require a TSSO.
- The applicant has to be the actual manufacturer of the product and not an intermediate supplier.
- The main parent company cannot evade liability in KSA, which may expose it to its place of incorporation.
- You cannot provide services outside of local technical support for the local distributor.
- The number of employees is limited by the Saudi authorities.