As part of the reforms launched in the wake of Vision 2030, Saudi Arabia has liberalized its rules and regulations relating to the KSA company setup by foreigners and locals.
The reforms have facilitated company formation in Saudi Arabia and attracted a lot of foreign investment. Among the significant reforms contributing to excellent foreign investment is allowing 100% foreign ownership of the companies without needing a local partner.
The reforms have permitted foreign investors to choose different types of business structures for their business set up in Saudi Arabia. If you are a foreigner, you can have 100% ownership of your Company. Out of the options available, if you plan to start a Limited Liability Company, the succeeding paragraphs will guide you in setting up an LLC in the country.
Limited Liability Company (LLC) in Saudi Arabia
A Saudi LLC formation provides liability protection and management flexibility as a much-preferred business structure. The Company is solely accountable for its debts and obligations resulting from its operations, and the liability of each owner or partner is limited to their contribution to the capital.
The liabilities will be met with the Company’s assets only and not with the assets of the shareholders or partners, with the financial risk of the members limited to their investments.
It also permits a simplified tax process and combines the advantages of both partnerships and corporations. The Company can be managed and represented by one or more directors.
Steps for an LLC Company Registration in Saudi Arabia
To register a company in Saudi Arabia, you can follow these steps:
Pre-Incorporation Preparation
- Assessment of Business Needs: We begin with a detailed evaluation of your business goals to determine the ideal entity type for your target market. Options include limited liability companies, representative offices, partnerships, or other structures.
- Legal Structure and Licensing Review: Conduct in-depth consultations to identify the legal structure, licensing requirements, business activities, company name, shareholding structure, and required documentation.
- Articles of Association (AOA): Draft and define the powers, responsibilities, and operational guidelines in compliance with legal standards.
- Entity Type Decision: We evaluate whether to establish a branch or subsidiary, factoring in control, liability, taxation, and regulatory obligations.
- Certificate Attestation: We Assist with regulatory compliance and certificate attestation specific to Saudi Arabia.
2. Incorporation and Licensing
- Entity Registration: Finalize the entity type and begin the incorporation process.
- Investment License: Obtain the necessary investment license to operate in Saudi Arabia.
- Memorandum of Association (MoA): Prepare, review, and secure approval for the Memorandum of Association.
- Commercial Registration: Process and issue the commercial registration for your company.
- File Openings: Coordinate with relevant authorities to open essential company files.
- General Manager’s Visa: Facilitate the visa process for the General Manager.
- Local Compliance: Ensure adherence to Saudi Arabia’s legal and regulatory standards for smooth incorporation.
3. Post-Incorporation Growth
- Government Registration: Register your business with key government agencies to hire staff and issue visas, including:
- Ministry of Interior
- Ministry of Labor
- General Organization for Social Insurance (GOSI)
- Zakat, Tax, and Customs Authority for VAT registration
- Muqeem system
- Mudad platform
- Chamber of Commerce’s online portal
- Bank Account Opening: We assist in the bank account opening process, meeting all requirements to facilitate financial transactions.
- Portal Management: We manage various online platforms effectively to support daily business operations.
By following these steps, you ensure a streamlined and compliant setup process, laying the foundation for sustained growth and long-term success in Saudi Arabia.
The Company set up in Saudi Arabia: Documents Required.
Some of the additional documentation that may be required includes:
- Commercial Registration and Articles of Association (AOA) 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.
- Power of Attorney for General Manager, attested by the Saudi Embassy or apostille.
Role of Helpline Group in Saudi Arabia
Helpline Group, backed by a strong and experienced team with an international presence and 10 branches, over 25 years of company formation expertise, offers clients a seamless, hassle-free experience. Our 300+ industry professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency.
We are committed to finishing all steps, procedures, documentation, and approval processes on time to form a Limited Liability Company in Saudi Arabia without compromising quality.
