Saudi Arabia, one of the largest economies in the Middle East, is fast emerging as a thriving hub for businesses and investors. Situated strategically for conducting business across Europe, Asia, and Africa, Saudi Arabia is now on the way to becoming a key player in accessing global markets.
Vision 2030 of the nation has led to business-friendly reforms, which have made it easy for foreign investors for business set up in Saudi Arabia. The reforms have permitted foreign investors to have 100% ownership of their businesses in Saudi Arabia without needing a local partner.
Before venturing into a Saudi Company Formation, a foreign investor has to select a business type under which the enterprise will operate. The types of business structures available for foreign investors are mentioned below.
Types of Legal Entity
- LLC (Limited Liability Company): An LLC stands as a dynamic business entity, offering a protective shield against personal liability for its owners.
- Foreign Company Branch: Engaging as a foreign company branch involves representing the parent organization.
- JSC (Joint Stock Company): A JSC functions as a corporate body that distributes ownership among shareholders.
- General Partnership: Here, multiple entities or individuals collectively collaborate to oversee business operations, sharing profits and liabilities.
- Technical and Scientific Offices (TSO): Foreign enterprises often establish technical and scientific hubs to distribute products in Saudi Arabia.
- The Establishment: The establishment process involves founding a new business or organization, encompassing various legal structures tailored to specific needs, ranging from sole proprietorships to corporations.
- Regional Headquarters (RHQ): An RHQ is a pivotal command centre for a company’s regional operations.
Detailed Steps for registering a company in Saudi Arabia
The steps below may be followed to register a company in Saudi Arabia:
- Securing MISA License: Secure the necessary MISA (Ministry of Investment, Saudi Arabia) license pertinent to your industry to ensure the lawful operation of your business.
- Choosing Your Business Name: Define your organization’s formal and unique identity, ensuring legal compliance and creating a solid brand presence.
- Legalizing Articles of Association: Validate the official acceptance of your Articles of Association to ensure their legitimate and authorized status.
- Completing Commercial Registration: Formally enrol your business in lawful commercial endeavours with a Commercial Registration Certificate in Saudi Arabia.
- Listing with the Chamber of Commerce (COC): It is mandatory to register with the Chamber of Commerce.
- Filing with the Ministry of Labor: Businesses in Saudi Arabia must register with the Ministry of Labor, ensuring compliance with employment laws.
- Issue General Manager’s Visa: GM needs swift approval for a residence permit and visa, with the MLSD (Ministry of Labour and Social Development) managing essential labour documentation.
- Enrolling the National Address for Your Company: Establish an authorized business address for inclusion in government records.
- Listing with Qiwa portal – Human Resources & Social Development: The Qiwa platform enhances Ministry of Human Resources & Social Development services, optimizing electronic solutions for the labour sector.
- Enrolment with Zakat, VAT & Corporate tax:Businesses in Saudi Arabia must register for tax compliance with the Zakat, VAT & Corporate tax.
- Company seal: Obtain the company seal
- Listing with Muqeem portal: Muqeem streamlines residency data management, ensuring real-time coordination with Saudi authorities for efficient entry and exit processes.
- Filing with Absher portal: Access 279+ services for Saudi residents, from appointments to passport renewals, ID cards, driver’s licenses, and more—all in one convenient application.
- Enrolment with General Organization for Social Insurance: Enrol with the General Organization for Social Insurance for worker welfare.
- Establishing Your Business Bank Account: Establish an exclusive bank account for business-related financial transactions.
Documents required for company setup in Saudi Arabia
The paperwork needed to establish a Saudi business will change according to the type of business. The following is a preliminary list of documents that are needed:
- CR and Articles of Association of the mother company, certified by the local commercial authority and the Saudi Embassy or apostille.
- Company’s Financial Statements from the last year, prepared by a licensed accounting firm and certified by the Saudi Embassy or apostille.
- Shareholders’ Resolution stating the intention to invest, including names, capital contribution, ownership percentages, and manager details If opening a Branch.
- Power of attorney for Helpline Group, attested by the Saudi Embassy or apostille, authorizing incorporation.
- POA for General Manager, attested by the Saudi Embassy or apostille.
How does the Helpline Group help set up a business in Saudi Arabia?
With more than 25 years of experience and 300+ qualified team members, the Helpline Group will help your Business Registration in Saudi Arabia with all necessary registrations and approvals from the concerned authorities of the Saudi Arabian government.
We can be your trusted partner for company formation in Saudi Arabia and for registration expeditiously.
