Many foreign companies have found Saudi Arabia to be an attractive place to do business. The country’s friendly approach to international investment, ease of doing business and large economy will continue to attract new investors and entrepreneurs to the kingdom. Starting a business in Saudi Arabia can be an exciting experience but can also be difficult.

The process of starting a business in Saudi Arabia is so complex that many people require professional assistance. The legal, regulatory and cultural issues can be daunting for new entrants to this vast Middle Eastern country. At DBS Business Setup Group, we want to make your entry into the Saudi market easier by helping you navigate the complexities involved in setting up a business in Saudi Arabia. To that end, we have provided a variety of business structures available in Saudi Arabia to suit different budgets.

Saudi government officials are currently taking steps to increase the offering of business opportunities for foreign direct investment. Our experts will help you choose the most appropriate business structure for your new venture and stay up to date on local market changes and licensing requirements. In addition, DBS Business Setup Group will support your efforts to successfully establish a new business in Saudi Arabia.

Business Setup Legal Frameworks in Saudi Arabia

As your trusted partner for setting up a trading company in Saudi Arabia, DBS Business Setup Group guides you through various legal frameworks to identify the best option for your business objectives:

• Limited Liability Company (LLC)

• Single Person Company

• Joint Stock Company

• Professional Partnership

• Foreign Company Branch

Types of Licenses in Saudi Arabia

• Commercial License: Suitable for setting up retail, wholesale and other trade-related enterprises.

• Industrial License: Designed for businesses involved in the production or manufacturing of goods.

• Professional License: For sectors such as contracting, IT, consulting, education and training services.

• Transportation and Logistics License: For companies providing shipping and transportation solutions.

At DBS Business Setup Group, we go beyond explaining licenses - we obtain them on your behalf. Our experts manage the entire application process, reducing delays and ensuring compliance.

Business Setup in Saudi Arabia for Foreigners Requirements 

Our consultants take the hassle out of paperwork, ensuring that your company registration is a smooth process. We ensure the submission of the following documents:

• A certified copy of the original company’s commercial registration and articles of association.

• A copy of the trade name reservation from the Saudi Ministry of Commerce.

• Copy of the company manager’s passport.

• Certified list of partners, capital division and ownership details.

• Copy of the Saudi partner’s national ID (if applicable) along with their commercial registration to verify their business.

• Financial statements for the last fiscal year, prepared by an accredited law firm and certified by the Saudi embassy.

• For Saudi entities and joint-stock companies, company bylaws, articles of association.

• Initial approvals if the activity requires specific permits.

• Detailed business plan highlighting the company’s investment goals and its contribution to the kingdom’s economy.

Further Reading: How to Start a Car Rental Business in Dubai? A Comprehensive Guide

First Steps of Starting a Business in Saudi Arabia

Your first step to starting a business in Saudi Arabia is through the Saudi Ministry of Investment (MISA) formerly known as SAGIA. In order to legally do business in Saudi Arabia, foreign companies must have a MISA license. The MISA license will verify that you comply with all applicable Saudi Arabian laws and regulations. It can take approximately 2-4 weeks to obtain approval from MISA and must be renewed annually.

Step 1: Obtain Your Company’s Commercial Registration with the Ministry of Commerce

Once you have received your MISA license, you will need to register your company with the Ministry of Commerce (MoC). Prepare the Articles of Association (AoA) as required by Saudi Company Law. Once approved, you receive a Commercial Registration (CR), which acts as your trade license and certificate of incorporation. Renew annually.

Step 2: Register with the Chamber of Commerce

CoC registration is required to validate corporate documents and process employee visas. It ensures that all documents are valid and authorized.

Step 3: Comply with the Ministry of Human Resources and Social Development

Register your company to issue work permits and visas for non-Saudi employees. Compliance with the Ministry’s regulations is mandatory.

Step 4: Register with GOSI and make payments

1. Company Registration: Register your company with GOSI before hiring.

2. Employee Registration: Register Saudi and non-Saudi employees.

3. Social Insurance Payments: Pay monthly contributions based on employees’ salaries through GOSI.

Step 5: Join the Zakat, Taxes and Customs Authority (ZATCA)

Register with ZATCA to fulfill tax obligations including VAT, corporate tax and withholding tax. The online portal handles filing, payment and customs services.

Step 6: Register for a National Address

Register your office address with Saudi Post (SPL) to enable postal and e-commerce services.

Step 7: Obtain a General Manager Visa and Iqama

GMs require a working visa to enter Saudi Arabia. Upon arrival, convert it to an exit/re-entry visa and obtain a residence permit (Iqama).

Step 8: Register with Absher, Muqeem, and QIWA

Use this portal to manage your visa, Iqama, and company employment processes.

Step 9: Open a Bank Account

Once the previous steps are complete, open a corporate bank account. The process typically takes 3-4 weeks, depending on the ownership and bank KYC requirements.

Step 10: Obtain a Residence Permit

Finally, obtain a residence permit for yourself and key employees to ensure legal presence in Saudi Arabia.

Following these steps ensures a smooth and compliant business setup in KSA. For expert guidance, contact DBS Business Setup Group.

Benefits of Setting Up a Business in Saudi Arabia

• Easy and largely digital business registration process.

• Safe and stable social and business environment.

• High-quality social and infrastructure facilities.

• Attractive government incentives and tax benefits.

• Prime business locations.

• Strategic international position for seamless transactions.

Cost of Company Formation in Saudi Arabia

Setting up a company in Saudi Arabia is easy and hassle-free. However, the total cost can vary depending on many factors, such as the location of your business, the size of your team, and other requirements.

• Annual registration and renewal fees for MISA license

• Registration fees for Entrepreneurial license

• Commercial registration fees and periodic renewals

• Company Gazette publication

• Commercial certificates

• Annual registration and renewal fees for Chamber of Commerce

• Bank account: LLCs are required to maintain a minimum average balance

It is recommended to work closely with a specialist business set-up consultant in Saudi Arabia (such as DBS Business Setup Group) to set up your new business as efficiently as possible and to reduce the cost of setting up a business in Saudi Arabia by being aware of local regulations and how things are done on a standard basis.

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