Saudi Arabia is considered one of the fastest-growing markets in the world because it enjoys a unique and promising investment environment that supports all investors. The Saudi economy has witnessed significant development in recent times, opening up many fields for both local and foreign investors alike.
This growth includes many institutions, starting with small projects and extending to large companies, which provides a great opportunity for many people to choose the appropriate activity for them. The government also provides many services and facilities to all investors, which enhances the chances of success. In this article, we will talk about the way of setting up company in Saudi Arabia.
Setting up company in Saudi Arabia
Many foreign investors are now setting up company in Saudi Arabia, especially after the recent development, however, it is important to comply with all the regulations and laws relating to the establishment of companies in Saudi Arabia to avoid any potential legal accountability. The initial procedures for establishing the company are a crucial step to starting a business successfully.
All investors must choose a commercial activity that corresponds to the set of commercial activities available for investment in the Kingdom and avoid businesses that are prohibited for foreign investment. The company must also comply with all the technical specifications, and you can depend on us, which specialize in completing the procedures for setting up company in Saudi Arabia, for foreign and local investors in the shortest possible time and completing all the necessary legal procedures.
How to set up a Company in Saudi Arabia
There are some steps that must be followed to establish a company in Saudi Arabia, and these include:
- You must determine the type of company to suit your business activity and specific needs.
- Choosing the trade name of the company in proportion to its activity, taking into account that it does not resemble other trade names in the Kingdom.
- Opening a bank account with one of the approved banks in the Kingdom, either through the bank's website or by visiting the bank.
- The necessity of obtaining all the necessary permits and licenses from the competent government authorities, depending on the company's activity, such as the Ministry of Health and the Ministry of Labor, and other ministries.
- An investment permit that is extracted from the General Investment Authority in Saudi Arabia by visiting the Ministry's website.
- Preparing the company's articles of association in accordance with the Companies Law in the Kingdom, which must include the company's headquarters, name, type, capital, and the names of all partners.
Read also: Setup Your Business in Saudi Arabia with Expert Support
Advantages of setting up company in Saudi Arabia
Saudi Arabia is considered one of the most important destinations for all investors, due to its distinguished location between Asia and Africa. It is also distinguished by the existence of a distinguished infrastructure that helps in marketing all products, as there is a network of roads, ports and airports, which facilitates its connection with other countries.
Saudi Arabia has also witnessed great technological progress in recent times, which has contributed to the development of many fields. The stability in the Kingdom is considered a distinguished environment for many investors, and the government provides great support to investors by providing material support from some Saudi banks, providing some technical consultations, and providing labor.
Requirements for setting up company in Saudi Arabia
There are some documents that must be available when setting up company in Saudi Arabia, such as:
- Certified copy of the company owner's personal identification card, which is certified either through the Saudi Embassy or through the Ministry of Foreign Affairs.
- There must also be a certified copy of the passport in the case of foreign investors and a certified and authenticated copy of the company's commercial register
- A Certificate proving the company owner's good conduct, ensuring that he is not involved in any other cases.
- A lease agreement for the company's main branch headquarters must also be submitted.
- All initial fees must be paid to complete the procedures for starting work at the company.
Costs of setting up company in Saudi Arabia
There are many factors that affect the cost of setting up company in Saudi Arabia, the most important of which is the type of company as each type of company requires starting with a specific capital. There are also some sects that are imposed when registering some types of companies, such as value-added tax fees.
The company's headquarters also affects the costs of renting this headquarters. The number of the company's partners also affects the cost of setting up company in Saudi Arabia, as the more partners, the more legal and administrative fees.
Registration fees must also be taken into account, and they vary according to the company's activity and type, the costs of extracting all the licenses and papers required to establish the company. You can also contract with a professional company to complete the registration procedures and extract the licenses.
Although this reduces the time it takes to complete these procedures, it requires some additional costs. You can also use a specialized financial expert to reduce some of the costs of establishing companies.
FAQs
What are the types of companies available for establishment in Saudi Arabia?
There are many companies that can be established in Saudi Arabia, such as joint stock companies, where the capital is divided into several shares that are sold to many investors. A solidarity company includes two or more people, and a limited partnership is a team of partners who are committed to managing the company and covering all its material obligations.
Can foreigners establish a company in Saudi Arabia? What are the conditions?
The government of Saudi Arabia allows the establishment of companies for foreign investors, but it must be in accordance with the systems followed for companies and trade in the Kingdom.
How long does it take to establish a company in Saudi Arabia?
The time it takes to establish a company in Saudi Arabia varies from one company to another, but our office can complete all the necessary procedures to establish a company in the shortest possible time.
Saudi Arabia allows the possibility of setting up company in it for many foreign investors and also supports investment financially and technically to support the economy in the Kingdom. Saudi Arabia is also considered a distinguished environment for investors, and our office can complete all legal procedures and establish companies as quickly as possible. Now you can expand your business in Saudi Arabia with Motaded which is specialized in setting up companies services, ensuring compliance with regulations, efficiency, and a smooth registration process.