Doing business in Saudi Arabia is a very convenient task, with a series of policies to make it easier for foreign investors to establish a business. However, this facilitation can only be achieved if the foreign investor follows certain procedures and regulations. In this article, the A-China Institute of Industry will introduce the process, costs and benefits of setting up a company in Saudi Arabia, provide a guide for potential investors who are determined to establish a business in this Arab country, and can provide you with Saudi company registration agency services.
1. The process of setting up a limited liability company in Saudi Arabia.
Before understanding the company setup process, it is first necessary to have a brief understanding of the forms of companies that are allowed to operate in Saudi Arabia. Typically, there are 5 types of corporate structures, and investors can choose their preferred type of company to invest in. Among them, a limited liability company (LLC) is considered one of the most popular types of companies for foreign investors.
The following are the main steps to register an LLC:
1.Apply for an investment license from the Saudi Ministry of Investment The initial step to set up a business in Saudi Arabia is to obtain an investment license from the Saudi Ministry of General Investment. Without this license, foreign investors cannot establish any company in Saudi Arabia. The entire process can be completed by submitting a proposed application** to the Saudi Ministry of Investment.
Cost: SAR 2000.
2.Notarization of corporate documents During the company formation process, all business documents must be properly notarized. Once the Articles of Association are ready and approved, they must be notarized as soon as possible.
Cost: No fee.
3.Official Gazette Publication of Company Details The Official Gazette publication includes the company name, articles of association information, approval certificates, etc., all documents related to the establishment of the company and the approval of various departments.
Cost: SAR 650 - SAR 5500.
4.Opening a bank account The process of setting up a company in Saudi Arabia requires the opening of a company's bank account, which will help with the filing of various ** expenses and be a means of managing and trading the company's finances.
Fees: An initial deposit of at least SAR 100,000 is required.
5.Setting up an office space It is highly recommended to set up an office address, which is a requirement in the steps of doing business in Saudi Arabia, and obtaining a municipal permit is required.
Fees: Varies according to the company's requirements.
6.Obtaining a Business Certificate After filing all statutory corporate documents with the Commercial Registration Department, you will receive a Business Certificate upon completion of the procedure.
Cost: SAR 0 – SAR 8100, depending on the type of company.
7.Membership registration with the Chamber of Commerce Membership registration is an important initial step in setting up a company, and a membership certificate will be obtained upon successful registration.
Cost: SAR 2000.
2. Summary of the costs of setting up a Saudi foreign investor limited liability company.
Below is a list of the average costs of setting up an LLC in Saudi Arabia:
1.Company name reservation: No fee.
2.SAGIA license: SAR 2000.
3.Notarization of company documents: no fee.
4.Company Gazette Publication: SAR 650 - SAR 5500.
5.Bank account opening: no fees (initial deposit of SAR 100,000 for LLC).
6.Office space: SAR 4000 - SAR 1500.
7.Business Certificate: SAR 0 - SAR 8100, depending on the type of company.
8.Certificate of membership of the Chamber of Commerce: SAR 2000.
3. Benefits of setting up a business in Saudi Arabia.
Saudi Arabia offers a range of benefits to foreign investors, including:
1.The business setup process is more convenient, and most of them are carried out, saving time.
2.A safe social and business environment enhances confidence between investors and customers.
3.Advanced social and infrastructural facilities ensure that investors and their families can enjoy luxury and quality time during their stay at KSA.
4.**Offers a variety of tax reliefs, tax support, tax-free goods trading facilities, and free zone facilities.
5.The commercial space facilities are equipped with world-class furniture, facilities, and facilities.
6.Saudi Arabia is strategically located around the globe for business transactions from both the East and the West.
4. Why did you choose to set up a limited liability company in Saudi Arabia?
1.A limited liability company can start with only one owner and one director.
2.Liability is limited to the capital of the company and does not affect the personal assets of the owner or shareholder.
3.It is a typical way to enter a Saudi joint venture.
4.Projects that are carried out simultaneously at both private and public levels can be handled.
5.Residency permits can be provided for multiple employees and employment can be provided.
For investors who are determined to set up a company in Saudi Arabia, this article provides a comprehensive guide to help them navigate the business setup process in this Arab country. Qidu and the A-China Industrial Research Institute are strategic partners, if you have any Middle East company registration needs, please contact us.