How To Setup a company in Saudi Arabia

Establishing a company in Saudi Arabia involves several key steps and considerations, especially under the framework of the Kingdom’s Vision 2030 initiative, which aims to attract foreign investment and simplify the business setup process. Here’s a detailed overview of the company establishment process:

1. Choose the Business Structure

Select the appropriate legal structure for your business. Common types include:

2. Business Name Registration

Choose a unique name for your company that complies with Saudi regulations. You can check the availability of the name through the Ministry of Commerce and Investment (MCI) website. Once confirmed, you can reserve the name.

3. Obtain Required Licenses and Permits

Depending on your business activity, you may need specific licenses or permits. This can include:

4. Prepare the Articles of Association

Draft the Articles of Association (AoA) for the company, outlining the business’s structure, objectives, and governance. This document must be notarized and submitted to the relevant authorities.

5. Register with the Ministry of Commerce and Investment (MCI)

Submit your company documents, including the AoA and identification documents of shareholders, to the MCI for commercial registration. This step also involves:

6. Open a Corporate Bank Account

After obtaining the CR certificate, open a corporate bank account in Saudi Arabia. You’ll not need to but may deposit the required capital, which varies depending on the type of business entity.

Conclusion

The process of establishing a company in Saudi Arabia has become more streamlined in recent years, reflecting the Kingdom’s commitment to fostering a business-friendly environment. However, compared to other jurisdictions in the region, the establishment process is much more comprehensive and complicated as many different governmental bodies are involved, and official language is Arabic. The various governmental registrations partially depend on other registrations and may not be completed unless previous mandatory filings are done and approved by the respective body. By following these steps and staying informed about regulatory changes, foreign investors can successfully navigate the establishment process and take advantage of the numerous opportunities available in the Saudi market.

Investors should therefore seek for established professional legal advice and request provide’s proven track record in the Kingdom.

7. Register for Tax and Social Security

Register your company with the General Authority of Zakat, Tax and Custom (ZATCA) for tax purposes. You may also need to register with the General Organization for Social Insurance (GOSI) to comply with labor laws regarding employee insurance.

8. Obtain Additional Licenses (if needed)

Certain industries may require additional licenses or approvals from specific regulatory bodies, such as the Saudi Food and Drug Authority (SFDA) or the Saudi Arabian Monetary Authority (SAMA).

9. Recruit Employees and Obtain Work Visas

If you plan to hire foreign employees, you’ll need to secure work visas and residency permits for them. This process involves coordination with the Ministry of Labor and Social Development.

10. Compliance and Ongoing Obligations

Once established, your company will need to comply with ongoing regulatory requirements, including:

Conclusion

Investors should therefore seek for established professional legal advice and request provide’s proven track record in the Kingdom.