Startup Company Formation in Saudi
Saudi Arabia, one of the largest economies in the Middle East, is expected to emerge as a thriving hub for business set up by foreign investors. The liberalized rules for business registration in Saudi Arabia permit a foreign entrepreneur to have 100 % foreign ownership in Saudi Arabia. A Startup Company Formation in Saudi Arabia involves several essential steps. The succeeding paragraphs describe the steps involved in a KSA Company setup.
Before the new Saudi Arabian investment laws came into effect in 2025, it was necessary to obtain an investment license from the Ministry of Investment of Saudi Arabia to give authority to foreign investors to invest and operate their Saudi business setup. In coming years, foreign investors can operate within the country by registering with the Ministry of Investment.
Pre-incorporation steps for Startup In Saudi Arabia
- Select a business structure: You need to select a suitable one from the options available, such as a limited liability company (LLC), joint stock company, or branch office.
- Conduct a Business Name Search: The availability of your desired business name may be verified through the Saudi Ministry of Commerce and Industries website.
- Obtain initial approval: Get initial approval for your business name and activity from the Ministry of Commerce and Industry.
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Incorporation Steps
- Draft articles of association: Draft the articles of association for your Company outlining the Company’s internal regulations, including share capital, management structure, and operational procedures. The AOA must be notarized by a licensed Saudi attorney and submitted to MOCI for approval.
- Register with the Ministry of Commerce and Industry: The process involves submitting the necessary documentation to the MoCI, including details of directors and shareholders, passport copies, trade name declaration, and notarized Memorandum of Association & Articles of Association.
- Obtain a Commercial Registration Certificate: Receive your certificate, which includes your business license number.
- Register with the General Authority for Zakat & Tax (GAZT): This registration is required for tax purposes and is needed for all companies in Saudi Arabia.
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Post Incorporation Steps
- Open a Corporate Bank Account: You must open a bank account in your Company’s name. Open bank accounts for your Company to conduct business transactions, pay salaries, receive customer payments, and manage financial operations. To open a bank account, companies must provide relevant documents, including the CR Certificate, AOA, valid identification of authorized signatories, and proof of address.
- Obtain a Chamber of Commerce Membership: Register with the local Chamber of Commerce.
- Register with the General Organization for Social Insurance (GOSI): This registration is for social insurance purposes.
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Additional Requirements
- Obtain necessary licenses and permits: Secure industry-specific licenses and permits, including municipality permits.
- Comply with Labour Laws: Register with the Ministry of Labour & Social Development.
- General Manager’s Visa: Obtain the necessary approval for your General Manager’s residence permit and visa, managing essential labour documentation through the Ministry of Labour and Social Development.
- National Address Enrolment: Establish a recognized business address for inclusion in government records.
- Filing with Qiwa Portal–Human Resources & Social Development: Filing with the Qiwa platform to optimize the Ministry of Human Resources & Social Development services is necessary to improve electronic solutions for the labour sector.
- Muqeem Portal Listing: Streamline residency data management with Muqeem, ensuring real-time coordination with Saudi authorities for efficient entry and exit processes.
- Absher Portal Filing: The Absher Portal Filing allows Saudi residents to access over 279 services, including appointments, passport renewals, ID cards, driver’s licenses, and more, all within a convenient application.
- Register MUDAD: This is a payroll system and compliance system.
- Obtain Health Insurance
- Ensure Medical Checkup
- Register Fasah License (for import and export services)
- Obtaining a Municipality license.
The time frame to register a company in Saudi Arabia can vary depending on the nature of your business. It is advisable to obtain the services of a consulting agency for guidance in startup company formation.
How does the Helpline Group help set up a business in Saudi Arabia?
Helpline Group brings over 25 years of expertise in company formation, offering a seamless, hassle-free experience for clients. Our experienced professionals possess exhaustive knowledge of the latest rules and regulations, ensuring compliance and efficiency.
The Helpline Group will help form a startup company in Saudi Arabia with all necessary registrations, licenses, and approvals from the authorities of the Saudi Arabian government.
