Saudi Arabia, one of the largest economies in the Middle East, is expected to emerge 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. One of the significant reforms introduced in the wake of Vision 2030 is to permit 100% foreign ownership in Saudi Arabia to set up their businesses. The initiative has helped the investors have complete control of their companies without needing a local partner. It has also resulted in an increase in foreign investment in Saudi Arabia in recent years.
Steps for a Company Setup in Saudi Arabia
For Saudi company formation, you can follow these steps:
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- Get an investment license: Obtain an investment license from the Ministry of Investment of Saudi Arabia (MISA). This license grants foreign investors the authority to invest within the country, whether opening a new company, establishing a branch, or acquiring an existing business.
- Reserve a company name: Reserve a name for your Company. The proposed name must comply with MOCI’s guidelines and not infringe on existing trademarks or corporate identities.
- Draft articles of association: Draft the articles of association for your 100% Foreign Ownership in Saudi 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: Register your Company with the Ministry of Commerce and Industry to obtain a commercial registration. 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.
- Enrolling with the Ministry of Labor: Ensures compliance with employment laws and makes it easier for your employees to assemble.
- Issue the 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.
- Register with the GAZT: Register your Company with the General Authority for Zakat and Tax (GAZT). All companies in Saudi Arabia must register with the General Authority of Zakat and Tax (GAZT) for taxation purposes.
- 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.
- General Organization for Social Insurance Enrolment: Enrol with the General Organization for Social Insurance to guarantee the welfare of your workers.
- Open bank accounts: 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.
How to Open a Company in Saudi Arabia: Documents Required.
Additional documentation may be needed by the MoCI aimed at ensuring legal compliance and transparency in business activities.
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.
In conclusion, business Registration in Saudi Arabia involves meticulously adhering to regulatory requirements.
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 in Saudi Arabia Company Formation with all necessary registrations, licenses and approvals from the concerned authorities of the Saudi Arabian government.
