Company registration <br>in Saudi Arabia

Company registration
in Saudi Arabia

Special features
Requirements
List of documents

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The economy of the Kingdom of Saudi Arabia (KSA) today is one of the fastest growing and largest in the entire region.

Businessmen find the country attractive due to:

favorable business environment
economic stability
strategic location
investment incentives
business support

At the same time, the state policy is aimed at the introduction and development of innovations.

If the idea of doing business in Saudi Arabian territory appeals to you or you need to consult a specialist, please contact us. Mirsatori provides a full package of legal services, ranging from handling the organizational issues of relocation and drafting a business plan to applying for citizenship of any country, including Saudi Arabia. Our specialists advise on all stages of immigration, and our lawyers provide support, which simplifies the process of company relocation, real estate acquisition and obtaining the right of residence in the shortest possible time.

Business in Saudi Arabia: the Advantages

Favorable business environment

A recently adopted law regarding new companies defines the types of businesses that can be registered in Saudi Arabia. The document regulates the provision of a significant number of benefits and subsidies for the owners of firms. The advantages of the state's commercial environment include expanded business financing as well as support from the country's competent authorities. Monshaat, the General Service of Medium and Small Companies, promotes entrepreneurship on the basis of loan programs, launching startup accelerators and incubators.

Preferential taxation

There is no corporate income tax in Saudi Arabia for individuals, for legal entities the rate reaches 20%. At the standard VAT rate of 15%, transactions involving the supply of goods abroad, as well as the provision of services to residents of states that are not members of the Gulf Cooperation Council (GCC), are not subject to taxation.

High living standards

Among the G20 countries, Saudi Arabia is recognized as the safest. Local residents have a decent government support. The country has a high standard of living. Whether an entrepreneur is a GCC resident or a prospective immigrant, doing business in Saudi Arabia can be a lucrative option for relocation and profitability.

Diversity of areas for foreign investment

The oil industry, typical for the region, is not singularly promising in terms of doing business today, although it contributes at least 59% of GDP. The diversification policy of the country's economic development is aimed at expanding the offerings of such spheres as tourism, transportation, and entertainment. State encouragement of startups, creation of investment support programs, as well as small, medium-sized businesses are not a problem for Saudi Arabia and contribute to the increase in profits from all sectors of the economy.

The price of setting up your business
in Saudi Arabia

The starting cost of business registration depends on whether the owner of the company is a citizen of the GCC or has another legal status. The final price is influenced by the need to rent commercial real estate, business activity and its directions. The amount may vary depending on the type of company and the number of shareholders.

Saudi Arabia

Types of companies recognized by Saudi Arabia

Joint Liability Company

A joint liability company, also known as a general partnership, is a simple organization in Saudi Arabia consisting of two or more persons equally responsible for any obligations of their firm.

Limited Partnership Company

This type of company where there is at least one general partner who has unlimited personal liability and one limited partner whose liability is limited to their personal investment. As a result, the general partners manage the business and make all important decisions, while the limited partners are only responsible for investing in the business.

Joint Stock Company

Joint stock companies are firms owned by their investors. A shareholder can buy or sell shares and own a percentage of the company corresponding to the number of shares they own. Joint stock companies are usually set up to give companies a constant stream of funding from shareholders who have come together for the purpose of investing.

Simple Joint Stock Company

Simple limited companies were introduced under the New Companies Act to meet the growing demand for startup and venture capital. These are flexible structures with simpler requirements compared to a traditional joint stock company. Under this type of business, a single individual can set up a joint stock company. Moreover, it removes restrictions on the number of board members and renumbering of directors, and authorizes the issuance of different classes of shares.

Limited Liability Company (LLC)

The LLC is one of the most common types of businesses. It is a structure commonly adopted by privately held companies that protects the personal assets of the business owners if the firm is ever involved in a lawsuit. The liability of the owners will be limited only to what they have contributed to the equity of the company.

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Business license requirements in Saudi Arabia

When registering a business in Saudi Arabia, there is a provision to provide documents in Arabic. The actual list varies depending on the chosen form of business activity, the basic dossier includes:

Business license
Financial statements for the previous period supported by an attestation
Memorandum and Articles of Association of the parent company
Registration certificate
Notarized power of attorney for registration
Consent of the Board of Directors of the company

Company launch process in Saudi Arabia

Identification of business lines

In order to submit a request and choose the form of the company, it is necessary to identify specific areas of activity in the country, as this information is specified in the application. Specialists of our company will advise and help you to choose the best direction of business activity for you.

Registration of investment license

For non-residents of Saudi Arabia, obtaining a license is mandatory. MISA is a license issued by the Ministry of Investment of the state to control companies with foreign capital. Our lawyers help to enter correct data about the business and financial activities.

Obtaining a tax number

Registration of commercial activities (SR) is available after submission of approved and notarized articles of association to the Ministry of Trade and Investment of the Kingdom. The procedure results in obtaining a Saudi Arabian tax number.

Company Name Registration

Reservation and declaration of the company name is performed by Saudi Commercial Service Center.

Issuance of the registration certificate

The document is a confirmation of the company's legal right to operate and allows it to start legal work in Saudi Arabia.

Obtaining a company address

Having a company's legal address ensures compliance with legal requirements for communication and subsequent receipt of government services.

State registration of the business

The commercial certificate is the basis for obtaining a registration mark at the Customs Authority, Ministry of Human Resources, General Organization of Social Insurance and some other competent services in Saudi Arabia. The procedure and requirements of each of the government authorities vary.

Opening a corporate account

Opening a company bank account is the final stage of business registration, which takes 90 days from the date of obtaining the business license. The procedure is necessary for financial transactions and settlements.

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Company registration in Saudi Arabia

Business in Saudi Arabia: the Advantages

The price of setting up your business in Saudi Arabia

Types of companies recognized by Saudi Arabia

Business license requirements in Saudi Arabia

Company launch process in Saudi Arabia

Other Services

Company registration
in Saudi Arabia

The price of setting up your business
in Saudi Arabia