COMPANY SETUP IN SAUDI ARABIA
Saudi Arabia, which is primarily an oil-based economy, has a strong international image for being a business-friendly country. The country is a member of various international organisations, including the World Trade Organization (WTO), the G20, the Gulf Cooperation Council (GCC), and the Organization of Petroleum Exporting Countries (OPEC), and it has a plethora of investment prospects. The most popular non-oil business areas for setting up a company in Saudi Arabia include construction, real estate, healthcare and life sciences, education, energy, chemicals, information technology, and industrial manufacturing.
Business structures in Saudi Arabia:
According to Saudi Arabian company legislation, the following business formats are available for company setup in Saudi Arabia:
- Foreign investors are most likely to incorporate branches of a foreign corporation.
- Joint ventures
- Joint stock company
- Limited partnership
- General partnership
Steps for setting up company in Saudi Arabia:
To establish a corporate branch office or form an LLC, you must wait three to six months for the Saudi Arabia Ministry of Commerce and Industry to issue a commercial registration. The process of setting up business in Saudi Arabia includes the following steps:
- Acquiring investment licence from Saudi Arabian General Investment Authority (SAGIA).
- Notarizing the memorandum of association
- Making the initial deposit into a local bank account
- Enroll with the Department of Customs
- Registering with the Department of labour
- To make administrative and financial operations for your company organisation easier, register with the Mudad Business Portal.
- Reservation of the company name, as well as the submission of the AOA, articles of association, and other other papers.
- Making a payment for the registration of a company.
- Obtaining a registration number from the General Organization for Social Insurance (GOSI).
- Creating an account with the Chamber of Commerce.
- Obtaining a municipal permit.
- Creating an account on the computerised Qiwa HR portal.
For registration with government entities, all documents required related to company setup in Saudi Arabia for submission must be translated into Arabic.
According to the Foreign Investment Act, all non-Saudi nationals are permitted to invest in the Kingdom and can invest in minority, majority, or 100% foreign-owned companies. However, according to the government's "negative list," many areas are off-limits to foreign investment. Therefore, setting up business in Saudi Arabia is off-limits at places that are on the negative list.
The sectors that aren't on the list should be considered accessible to foreign investment. Non-Saudi corporations have the same chances as Saudi companies under the Saudi Foreign Investment Act. Saudi law allows for the expropriation of foreign-owned assets only in exceptional circumstances. The Kingdom allows people to acquire land and companies to sponsor their employees.
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