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Company Formation in Saudi Arabia
The Kingdom of Saudi Arabia (KSA), with its booming economy and ambitious Vision 2030 initiatives, is attracting international businesses for Saudi business setup and company formation in KSA. But why choose Saudi Arabia? A thriving economy, strategic location, supportive government policies, and a young, tech-savvy population create fertile ground for growth. Dive deeper and explore the potential of establishing your company in this dynamic and promising Saudi business setup landscape.
Located in the heart of the Middle East and North Africa (MENA), Saudi Arabia is the largest country among the Gulf Cooperation Council (GCC), with the highest GDP reaching SAR 105 billion in 2022. Compared to other G20 countries, Saudi Arabia ranks 10th in terms of FDI net inflows among the G20 countries and 16th among the G20 countries in terms of FDI stock for the same year.
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Advantages of Setting Up Your Business in Saudi Arabia
100% foreign ownership for services, industrial, and trading activities.
No personal income tax.
No Saudi partner is required for most of the activities.
Broad economy.
Safety, security, and a good standard of living.
Investor-friendly policies.
Types of Legal Entities in Saudi Arabia
The business structures available in Saudi Arabia are:
A Limited Liability Company, also known as a private limited company, is the most common type of legal entity for setting up a business in Saudi Arabia. It requires a minimum of two shareholders and a maximum of 50 shareholders. Foreigners are able to own 100% of an LLC business in Saudi Arabia through the Ministry of Investment in Saudi Arabia (MISA).
A joint stock company is a highly regulated company structure in Saudi Arabia that requires a minimum capital of SAR 5–10 million.
The foreign company branch in Saudi Arabia must align with the business activities of the parent company. The minimum paid-up capital requirements must be fulfilled and deposited into the Saudi corporate bank account.
The structure you choose depends on the business legal requirements, ownership, and corporate structure of the company.
Document Requirements for Obtaining a Business License in Saudi Arabia
✔ Attested license of the parent company or certificate of incorporation.
✔ Attest the financial statement, Memorandum of Association, and Article of Association (AOA) of the parent company.
✔ Attested Power of Attorney (POA) and board resolution.
How Do You Form a Company in Saudi Arabia?
Stage 1: Pre-Incorporation Process.
- MISA license.
- Name reservation.
- Attestation of Articles of Association (AOA).
- Commercial registration issuance.
- Chamber of Commerce registration.
Stage 2: Incorporation Process.
- Registration with government entities is required.
- National address registration.
- General manager Iqama application.
Stage 3: Post-Incorporation Process.
- Chamber of Commerce account activation.
- General Manager Iqama processing in KSA.
- Registration with government platforms.
- Bank account opening.
Types of Business Licenses in Saudi Arabia
Services License, i.e., Constructions, Administrative Investment, Information Technology, Tourism, Training, Health, Insurance, and Re-Insurance, Education, Advertising and Media, Logistic Services, Organizing Exhibitions, Catering and Food Services, Financial Services, Aviation and Handling Services, etc.
Industrial License, i.e., all industrial licenses, such as heavy and light industries and transformative industries.
License for a scientific and technical office company that wishes to open an office to provide scientific and technical services to agents, distributors, and consumers of their products.
Commercial license, i.e., wholesale trade and retail trade in the Saudi market.
Professional License, i.e., Consultancies.
Documents Required for Establishing a Saudi Company
✔ Attested license of the parent company or certificate of incorporation.
✔ Attest the financial statement, Memorandum of Association, and Article of Association (AOA) of the parent company.
✔ Attested Power of Attorney (POA) and board resolution.
Unlock Saudi Arabia's Potential: Register Your Company with Our Streamlined Process and Expert Guidance
Are you ready to tap into the exciting opportunities of the Saudi Arabian market? Gatestone Group, company formation consultants in Saudi Arabia, offers comprehensive and efficient services to help you seamlessly navigate the process and launch your business with confidence.
From navigating legal requirements to optimising tax strategies, our dedicated team ensures a smooth and efficient setup process tailored to your business needs. Take the first step towards success in the Saudi market today!