Although the Saudi company register holds great potential, the registration process can seem daunting, particularly for foreign investors unfamiliar with the local landscape. However, with the right guidance and knowledge, the process can be streamlined efficiently.
overview of saudi company register
Saudi Arabia stands among the world’s fastest-growing economies, with a projected growth rate of 4.7% next year and 4.6% in 2025, far outpacing advanced economies, which are expected to grow at just 1.6% to 1.7%. It’s no surprise that global giants like Google, Morgan Stanley, IBM, and many others have established a strong presence in the kingdom.
This guide outlines the key steps for setting up a foreign-owned business in Saudi Arabia, drawing on our experience in successfully supporting the expansion of over 700 high-growth companies from more than 50 countries across 37 sectors into the Kingdom.
While the Saudi company register presents exciting possibilities, navigating the registration process can appear overwhelming, especially for foreign investors who may not be familiar with the local system.
What do I need to know about the Saudi company register?
Starting the process correctly enables you to establish a physical presence in Saudi Arabia and lay a solid foundation for your business growth.
It is crucial to exercise due diligence to ensure the proper Saudi company register. Errors in the registration process or noncompliance with one of the legal requirements can result in operational and financial setbacks due to fines.
Read also: Why Invest in Saudi Arabia? A Concise Guide for Foreign Investors.
Preparing Necessary Documents for the Saudi Company Register
These documents are essential for legal recognition and to ensure full compliance with Saudi business regulations. Below is a detailed list of the key documents required for the Saudi Company Register:
1. Identification Documents: Valid passports or national IDs for all shareholders and directors.
2. Ownership Structure Details: Clear breakdown of the company’s ownership, including each shareholder’s role and percentage of shares.
3. Trade Name Reservation Certificate: Official confirmation of the approved and reserved trade name for the company.
4. Articles of Association (AoA): A foundational legal document outlining the company’s bylaws, objectives, activities, share capital, and governance structure.
5. Commercial Lease Agreement (if applicable): A copy of the lease agreement for the company’s registered office location.
6. Business Plan: A strategic document outlining business goals, operational approach, financial forecasts, and market analysis.
7. Audited Financial Statements (for existing entities): Financial reports for the previous year demonstrating the company’s financial health.
8. Bank Reference Letters: Letters from banks attesting to the financial credibility of shareholders or directors.
How to register a Saudi company?
Phase One: Legal Entity Establishment
Estimated Duration: 1 Month
- Obtain an Investor License from the Ministry of Investment (MISA)
- Reserve the company name
- Draft the Articles of Association (AoA) in compliance with local regulations (limited customization permitted beyond defining the General Manager’s authority)
- Secure the Commercial Registration (CR)
- Complete registration with the Chamber of Commerce (CoC)
Phase Two: Authorization and Hiring
Estimated Duration: 2 Months
- Acquire the official company seal
- Register the business with the Ministry of Human Resources and Social Development (MLSD)
- Enroll the company with the General Organization for Social Insurance (GOSI)
- Obtain a national address for the business
- Apply for and issue a visa for the General Manager
- Register with the General Authority of Zakat and Tax (GAZT) and complete VAT registration
Phase Three: Residency and Banking
Estimated Duration: 3 Months
- Activate your Chamber of Commerce online account
- Obtain health insurance for the General Manager
- Complete the medical examination for the General Manager
- Issue the Iqama (residency permit) for the General Manager
- Register with the Muqeem platform for managing visa and residency services
- Sign up on the Absher portal to access a range of e-government services
- Register with the Qiwa portal, tailored for SME business operations
- Register with the Mudad portal for managing essential municipal services
- Open a corporate bank account
For anyone looking to register a company in Saudi Arabia, it is vital to know these new regulations. Motaded in Saudi Arabia can easily walk you through the latest business registration laws and procedures. Our expertise guarantees your business is established quickly, securely, and in compliance with the new regulations. We simplify the process of commercial registration and trade names in the Saudi company register and ensure strong protection and flexibility in handling your business identity. Whether you’re a local businessperson or are considering Saudi company registration in Saudi Arabia, now is a great time to take action. Contact us now and learn how to have a Saudi company.
FAQs about saudi company register
How long does it take to have a Saudi company register?
Once all the necessary documents are ready, it takes around 6 months to have a fully operational business in Saudi Arabia. However, our team at Motaded significantly accelerates this timeline. Our clients, on average, become operational within three months. This efficiency is powered by our decade of experience in Saudi company formation and our strong relationships with key stakeholders such as MISA, private sector partners, and local banks.
Can foreigners have a Saudi company register?
Yes, foreigners can have a Saudi company register with 100% ownership. As one of the fastest-growing economies globally, the kingdom offers an ideal launchpad for international businesses, thanks to its business-friendly environment, tax advantages, and streamlined setup process.
How many shareholders are required to have a Saudi company register?
To have a Saudi company register, you will need at least one shareholder to do so. The shareholder can be either a Saudi resident or a foreign national.
What is the average cost of having a Saudi company register?
The average cost of expenses covering the Saudi company register during its first year of operation can be SR550,000, or $172,000. It’s important to note that license renewals begin in the 11th month of the business year, so this should be factored into your first-year budget planning.
Why is opening a corporate bank account important in having a Saudi company register?
Opening a bank account is an essential step towards having a Saudi company register. Motaded assists businesses in gaining direct access to top Saudi banks such as SAB, Riyad Bank, and Albilad Bank, helping companies quickly begin their operations.
Do foreign companies pay VAT in Saudi Arabia?
Yes, VAT registration is mandatory for businesses with a value of supplies > SAR 375,000. Income Tax & Zakat: Foreign companies are subject to a corporate income tax of 20% on the net adjusted profits at the end of the financial year.
Do expats pay taxes in Saudi Arabia?
There is no personal income tax in Saudi Arabia. However, non-Saudi and non-GCC nationals involved in business activities are subject to a 20% corporate income tax on their share of the net adjusted profits in resident companies.
How can a foreign company be registered with 100% ownership in Saudi Arabia?
Here are the key steps to register a fully foreign-owned company in Saudi Arabia:
- Register with the Ministry of Investment (MISA) and obtain a foreign investment license.
- Prepare and notarize the Articles of Association, then publish them as required.
- Apply for the Commercial Registration Certificate (CR) through the Ministry of Commerce (MOC).