If you are looking forward investing your money and experience in a business company or even a startup project , Saudi Arabia will be your perfect place choice to start your new career there as it encourages the passionate foreign investors to setup their business in Saudi Arabia
You can find that over the eight years since the launch of the Saudi Arabia Vision 2030, the Kingdom has also made significant steps in developing an environment for international corporates and investors
Why starting your business setup in Saudi Arabia
Saudi Arabia is an attractive destination for many foreign investors, as you can find a lot of business opportunities and political stability that will give you the chance of success in your business.
If you wish to expand your business in Saudi Arabia to take advantage of the benefits of business opportunities, you will find a lot of companies in Saudi Arabia which provide quick and hassle-free business setup services.
Types of legal Business setup in Saudi Arabia that you can start and invest in :
Limited liability company (LLC):
It is a business that is considered an easy one and it is the most common type of business structure in Saudi Arabia as it combines the features of a partnership and corporate company that offers a limited liability and also simple management structure and ease of setting up while providing 100% foreign ownership.
Joint stock company (JSC) :What is a joint-stock company in Saudi Arabia
It is a joint business structure that allows investors to join with the risk and their capital in an already established commercial company.
Simple partnership firm
It is an attractive business for all investors as it consists of two groups of partners which are:
- general partners who are fully liable to all the company obligations and debts which make them responsible for any financial issues the company may face, they are also usually responsible for the daily operations and management of the partnership and also takes the critical decisions.
- limited partners who have limited liability based on their initial limited investment in the partnership their role is only restricted to provide capital and share in the profits which protect for them their assets , in addition they aren't responsible for the daily operations or management.
What is the difference between LLC and JSC ?
We can add that the difference between the LLC and the JSC that in Joint Stock Companies ,capital tax is imposed if shares are liquidated within a 2-year span, on the other hand in the limited liability companies, capital tax is imposed regardless of when the company shares are traded.
This difference in tax treatment is essential for financial planning and decision-making.
Find out more details about: Limited Liability Company.
How to start your business setup in Saudi Arabia.
When you are going to set up a business you might consider several things , such as your target audiences , the product and service you will offer and most essentially the cost of company formation in Saudi Arabia.
The cost : How much does a business setup cost in Saudi Arabia and what are the procedures?
To set up or start a new company in Saudi Arabia you will need to consider some financial costs and procedures which varies if you are local investor or foreign investor , it also depends on the sort of the business you want to set up ,the amount of capital you will invest and the fees imposed by the government organizations
Want to know the costs to establish a company in Saudi Arabia?, Read more here and check this list :
- A commercial registration certificate to operate legally in saudi arabia which may cost initially 1850 SAR and then 1200 SAR annually
- Chamber of commerce membership it costs from 1000 SAR to 10000 SAR based on the size and the type of business activity and
- Company name registration which may cost 200 SAR
- MISA license (Ministry of Investment of Saudi Arabia) ( for foreign investors only) around 2000 SAR to 10000 SAR based on the type of business activity
- Municipality license it costs about 1000 SAR to 5000 SAR
- Office rental usually costs from 10000 SAR to 50000 SAR based on the city and area
For foreigners : Can foreigners set up a business in Saudi Arabia? :
Definitely yes a foreigner investor will be most welcome to start his new set up business in Saudi Arabia anyone can set up his business in Saudi Arabia and the government will encourage their projects and promote them.
You could see that starting a business in any foreign nation seems such a complicated process that will take a little bit many steps or stages may be a little bit complicated but in Saudi Arabia you will easily got this requirements and provide all the legal and financial requirements.
- Commercial Registration: you must obtain a commercial registration (CR) from the Ministry of Commerce and Investment (MCI).
- Foreign Investment License: If you are a foreign investor, you need a license from the Saudi Arabian General Investment Authority (SAGIA).
- Zakat Registration: you might register for Zakat (a form of tax in Saudi Arabia)
other requirements:
- MISA license ( for foreign investors ).
- Passports and residency permits.
- Contact details ( a scan copy of shareholders and directions).
- You must have a business plan.
- The sector can require an initial capital investment proof.
- It is obligatory or essential to have a physical office address in Saudi Arabia as long as you operate.
NOTE: It will be better to follow up with a lawyer or a consultant to ensure all the requirements have been achieved.
MOTADED : your consultant for setting up your new company
You can now book your free consultation at in which you can find your best consultants for business setup in Saudi Arabia.
Our main purpose is to help you achieve your goal and establish your new company , as we are going to simplify your process to set up your new business in Saudi Arabia.
Some of our services :
- business setup: we help you in formation and establishing your new business whether it is limited liability company, joint stock company or branch offices you will find us by your side.
- Visa issuance: we help you issue your required Visa and license.
How to reach us:
Contact information : if you are interested and want to know more about our services you can contact us now Contact Us.
Here at MOTADED you will benefit from our experience and knowledge, we will help you establish your new company by simplifying and dealing with all the requirements of the complicated process of setting up a business.
The place : Where could you start your business setup in Saudi Arabia ?
You can choose the suitable place in Saudi Arabia for your business company but if you want to benefit from this , you will find that Saudi Arabia offers this free zones license which you can apply for.
About free zones license in Saudi Arabia:
According to Saudi Arabia vision 2030 initiative Saudi Arabia offers free zones license to encourage foreign investors to set up their business in Saudi Arabia by facilitating establishing a presence in the free zone ,this free zones in Saudi Arabia offers businesses advantageous circumstances to promote trade, investments, and economic progress.
Advantages of Operating a Free Zone Company in Saudi Arabia
- offering business attractive incentives: Many free zones offer great tax benefits, including exemptions from corporate taxes for a specified period and reduced tax rates afterward.
- Support Services: Many free zones offer additional support services, such as legal, financial, and marketing assistance.
- tax exemption benefits: Many free zones offer benefits from tax holidays and reduced tax rates.
- 100% foreign ownership: They offer fully ownership without needing a local partner
NOTE :The key free zones in Saudi Arabia is King Abdullah economic city (KAEC) located near Jeddah.
Read more about Free Zones in KSA.
Conclusion:
Overall , everyone is looking forward to investing and expanding his business and to make his own name , Saudi Arabia will be your best destination to set up your business and increase your profits , the promotion from the government is the main reason to invest there.
If you have your own capital and you want to invest and expand your own business , I will definitely recommend that you invest your money and experience in Saudi Arabia ,just check the procedures and apply for the required license , it will be very easy.
Go now and invest your money there with your trusted consultants at MOTADED
FAQs about business setup cost in Saudi Arabia:
What is the minimum capital requirement for Saudi Arabia?
It depends on the type of your business , for example sectors like real estate financing, digital brokerage, and public transportation may require a minimum capital ranging from SR2 million to SR200 million. But for the closed JSC the minimum capital may be SR 500,000 it may increase to SR 5 million if owned by a single individual.
What are the top 3 industries in Saudi Arabia?
You can find that the main industries in Saudi Arabia now are construction and real estate, tourism, renewable energy , technology and innovation and other different industries you will find there, you can choose what is suitable for you.
Is it difficult to do business in Saudi Arabia?
It is not difficult at all , in Saudi Arabia the government organizations promote and encourage investors , Saudi Arabia's vision 2030 is aiming to ease investing in it.