Register your company in Saudi Arabia

Here is an updated version of the article with links to useful resources for investors interested in registering a company in Saudi Arabia:

Streamlining Your Investor Journey: Effortless Company Registration in Saudi Arabia

Saudi Arabia’s transformation under Vision 2030 has positioned the Kingdom as a dynamic business hub, creating numerous opportunities for entrepreneurs from across the globe, particularly within the Middle East. In 2024, Saudi Arabia achieved remarkable growth, with public investment surging by 79% from the previous year. During the second quarter alone, the Kingdom issued 121,000 new commercial registrations, pushing the total number of commercial registrations across Saudi Arabia to over 1.5 million. Ministry of Investment Report 2024.

While set up a business in Saudi Arabia presents exciting possibilities, navigating the registration process can appear overwhelming, especially for foreign investors who may not be familiar with the local system. However, with the right guidance and knowledge, the process can be streamlined efficiently.

Key Business Structures in Saudi Arabia

Saudi Arabia provides various business structures, each with its own set of benefits and requirements. The most common business structures for foreign investors include:

1. Limited Liability Company (LLC):
   • Minimum capital: SAR 25,000
   • No requirement to deposit the capital in a local bank account. Ministry of Investment - LLC Information.
2. Joint Stock Company (JSC):
   • Minimum capital: SAR 500,000 for private companies Ministry of Commerce and Investment - JSC Information.
   • At least 25% of the capital must be paid upfront.
3. Branch Office:
   • Minimum capital: SAR 25,000 Ministry of Investment - Branch Office Guide
4. Representative Office:
   • No capital requirement Ministry of Investment - Representative Office.

Investment Licenses, Capital, and Requirements

Different investment licenses cater to various business activities. Foreign investors can own 100% of companies engaged in wholesale and retail trade with a minimum capital of SAR 30 million, provided the company operates in at least three regional or global markets. Saudi Arabia Investment Law. However, the new Investment Law to be enacted in 2025 will simplify the process further by eliminating the need for separate foreign investment licenses, providing equal treatment for domestic and foreign investors and strengthening intellectual property protections. Investment Law Changes 2025.

For industrial and agricultural projects, the minimum capital requirement is SAR 25,000, though this could change based on the business’s activity and structure.

Pre-Registration Essentials

Before initiating the registration process, foreign investors must secure an investment license from the Ministry of Investment. The following documents are required:

• A certified copy of the commercial registration from the home country, validated by the Saudi Embassy or through an Apostille.
• The company’s most recent financial statements, certified by an internationally recognized accounting firm and authenticated by the Saudi Embassy or Apostille.
• The company’s Articles of Association, also certified by the Saudi Embassy or Apostille.

Step-by-Step Registration Process

Once the necessary documentation is in order, the registration process can be broken down into several key steps:

1. Ministry of Investment (MISA):
   • Apply for the MISA license, which typically takes 5-7 business days for approval. MISA Registration Process.
2. Ministry of Commerce:
   • Reserve the company’s trade name.
   • Draft and issue the Articles of Association.
   • Obtain the commercial registration for the company.
   • Open an account at the local Chamber of Commerce and authorize the company’s general manager’s signature. Ministry of Commerce Registration Guide.
3. Ministry of Human Resources and Social Development:
   • Open an account with the labor office and activate the Qiwa platform.
   • Issue the general manager’s visa (if applicable). Ministry of Human Resources & Social Development.
4. General Organization for Social Insurance (GOSI):
   • Register with GOSI to comply with wage protection and Saudization requirements. GOSI Registration.
5. National Address Registration:
   • Every business in Saudi Arabia must have a national address for official purposes, including with the Ministry of Investment and the bank. National Address Registration.
6. General Authority of Zakat and Income (GAZT):
   • Register with GAZT to obtain a tax certificate and, if applicable, a VAT certificate. GAZT Registration.
7. Opening a Bank Account:
   • The final step in the registration process involves opening a commercial bank account. This generally takes 3-4 business days and requires several documents, including commercial registration, the Articles of Association, and the general manager’s residency permit (Iqama). Saudi Banks.

Registration Timeline and Support

The full registration process typically takes 6 to 8 weeks. Companies that choose to work with accredited consultants, such as Motaded, can benefit from their established relationships with government agencies, ensuring a smoother and faster registration process. Motaded Consultancy Services.

Conclusion

With its Vision 2030 reforms, Saudi Arabia has become one of the leading destinations for foreign investment, offering a range of incentives for businesses to establish their presence in the Kingdom. By selecting the appropriate business structure, gathering the required documentation, and following the step-by-step registration process, foreign investors can establish successful operations in Saudi Arabia.

If you're ready to start your business journey in Saudi Arabia, getting expert guidance can help you navigate the complexities of the registration process and ensure a smooth setup. Get a free consultation with our team to learn more.

Let me know if you need additional information or adjustments!