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. The blog discusses the importance of registering a company in Saudi Arabia and the necessary steps to take to register a company in Saudi Arabia.
Business-friendly reforms
Vision 2030 of the nation has led to business-friendly reforms, making it easy for foreign investors to set up business in Saudi Arabia. The reforms have permitted foreign investors to own a complete 100% company in Saudi Arabia without needing a local partner. As part of the reforms launched in the wake of Vision 2030, Saudi Arabia has liberalized its rules and regulations relating to the formation of companies in the country by foreigners and locals.
How have the reforms benefited foreign companies in Saudi Arabia?
The reforms have facilitated the formation of foreign companies in Saudi Arabia and extensively promoted foreign investment in Saudi Arabia. Among the significant reforms contributing to excellent foreign investment is allowing 100% foreign ownership of the companies without needing a local partner. It has permitted greater control of the company by the foreign investor.
The reforms have permitted foreign investors to choose different types of business entities/structures to start their companies in Saudi Arabia.
Before venturing into a Saudi Company Formation, a foreign investor has to select a business type under which the enterprise will operate.
Company registration in Saudi Arabia
Registering a company in Saudi Arabia follows specific primary steps listed below:
- 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. A Company License, a Commercial license, is a legal document issued by the Ministry of Commerce and Industry allowing a company to operate commercially 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.
- 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.
- 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.
A few other key considerations necessary for Company registration in Saudi Arabia are:
Business Activity License: Additional licenses from the concerned bodies are required depending on the type of business you select in the industry.
Legal Structure: Selecting the type of legal structure, such as an LLC (Limited Liability Company) or JSC (Joint Stock Company), is needed to suit your company licenses.
National Address: The next step is to register your company with a physical address in Saudi Arabia.
General Manager Residency: If you are a foreign investor, a General Manager must obtain a residency visa or IQAMA to operate in Saudi Arabia.
Tax Registration: it is a prerequisite to register with the General Authority of Zakat and Tax (GAZT) to comply with tax regulations.
It is advisable to consult business setup consultants like Helpline Group in Saudi Arabia to learn how to set up and register a company in the country.
How does the Helpline Group help set up a business in Saudi Arabia?
With over 25 years of experience and 300+ qualified team members, the Helpline Group will aid you in the Company Registration process in Saudi Arabia. Helpline Group, as a reliable partner, can help you establish your business in Saudi with all necessary registrations and approvals from the authorities of the Saudi Arabian Government.
