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Set Up Your Company
in Saudi Arabia
Saudi Arabia has emerged as a vibrant destination to start a business. The country is home to enormous natural resources like oil and fuels, which have driven its economy for many years. In addition, it also houses robust industries in machinery, dairy products, and pharmaceuticals which makes for a vast and diverse economy.
Further enhancing Saudi Arabia’s business landscape are policies that open the economy to investments and new businesses, some of which are listed below. These make the Kingdom of Saudi Arabia the ideal place for investors in the Middle East.
Advantages of Setting Up Your Business
in Saudi Arabia
A business-friendly environment
The recently enacted New Companies Law has provisions indicating what Saudi Arabia company types can be set up, including new business forms to accommodate more preferences. The law provides limited liability companies (LLCs) with a larger access to finance, alongside other benefits. The kingdom also offers extensive support to SMEs through its Small and Medium Enterprises General Authority, Monsha’at. This state-run authority offers incubators, accelerators, lending programs, and co-working spaces to allow small Saudi Arabia businesses to thrive.
Tax incentives
Like its fellow nations in the Middle East, Saudi Arabia scores high in tax benefits. The kingdom employs a 20% corporate income tax rate for a Saudi business and no personal income taxes. Meanwhile, the standard VAT rate sits at 15%, but there are several exempted supplies, such as the export of goods outside the GCC region and services provided to non-GCC residents.
Growing diversification
As part of its Vision 2023, the kingdom is working towards a more diverse economy with offerings that go beyond the typical Saudi Arabia oil company. The goal is achievable, as non-oil industries already contribute 58.9% to the GDP. To maintain or further this performance, Saudi Arabia is committing to a higher level of support for other sectors. They’re putting down efforts to increase foreign investment, creating programs to assist SMEs and startups, and expanding their tourism, transportation, and entertainment industries – among others.
An ideal standard of living
Saudi Arabia is one of the safest countries worldwide. In 2020, the Kingdom was recognized as the safest among all G20 nations, with a low crime rate. Residents also enjoy a high standard of living in Saudi Arabia, with reasonable costs and adequate government support. Setting up a company in Saudi Arabia is a strong option, whether you are a GCC resident or a foreigner looking for a place to relocate or set up a secondary home.
Cost of Setting Up Your Company
in the Kingdom of Saudi Arabia
The cost to start a business in the Kingdom of Saudi Arabia would depend on several factors, and would differ if you are a GCC national or a foreign national.
It also depends on the business activities, number of shareholders, office space requirements, and other factors.
Receive an estimate of your business setup cost in Saudi Arabia.
Contact our business setup advisor now!
Explore Monthly
Payment Plans
with Selected Banks
Convert your transactions into easy and affordable monthly instalments with our selected range of banking partners. Spend a minimum of AED 1,000 on your credit card issued from any of our participating banks and repay in easy instalments over a period of 12 months.
Steps
Make a minimum purchase of AED 1,000 using your credit card for any services provided by Rapid Zone.
Call the banking services of any of our partner banks and request to convert your purchase into an Easy Payment Plan.
Get the option of paying over 3, 6, 9 or 12 months
*General terms and conditions from the banks will be applicable.
Joint Liability Company
Joint Liability Company
Also known as a general partnership, a joint liability company is a straightforward entity in Saudi Arabia composed of two or more people equally liable for any of their firm’s obligations.
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Limited Partnership Company
Limited Partnership Company
This company type is one where there is at least one general partner who has an unlimited personal liability, and one limited partner whose liability is limited to their personal investment. As a result, the general partners handle managing the business and making all important decisions, while the limited partners are only responsible for investing in the business.
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Joint Stock Company
Joint Stock Company
Joint stock companies are firms owned by their investors. A shareholder can buy or sell shares and own a percentage of the company that corresponds with the number of shares they have. These are commonly established to give companies a steady stream of funding from shareholders who have come together to invest.
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Simple Joint Stock Company
Simple Joint Stock Company
Simple Joint Stock Companies were created by the New Companies Law to meet the rising demand for startup and venture capital. These are flexible entities with simpler requirements compared to the traditional joint stock company. Under this business type, a single individual can establish a joint stock company. Moreover, this removes restrictions on the number of company board members and the renumeration of directors, and permits the issuance of various classes of shares.
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Limited Liability Company (LLC)
Limited Liability Company (LLC)
An LLC is one of the more common business types. It is a structure typically adopted by private companies, which protects the business owners’ personal assets should the firm ever be involved in a legal case. Their liability will only be limited to whatever they contributed to the company’s share capital.
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Requirements
for Obtaining a
Business License in Saudi Arabia
The business formation requirements in Saudi Arabia may depend on the nature of the company, but the following documents are best to prepare and must be submitted in Arabic.
- Parent Company’s Memorandum & Articles of Association
- Attested Financial Statement for the Last Full Year
- Business License/Trade License
- Certificate of Incorporation
- Board Resolution
- Power of Attorney
Steps for Setting Up Your
Business in Saudi Arabia
Ready to establish your business in Saudi Arabia? Here is the step-by-step guide for you.
1
Determine Your Business Activities
Choose the specific operations you want your business to take on in Saudi Arabia, as you must mention this in your application. It will also guide what company type will work best for you, which our team will help you decide.
2
Apply For The MISA Investment License
If you are a foreign investor, you will need a license from the Ministry of Investment Saudi Arabia, which oversees licensing for all foreign-owned companies in Saudi Arabia. Our specialists will assist you with your application, including information about your business and financial details.
3
Submit Articles Of Association
Submit your company’s Articles of Association to the Ministry of Commerce and Investment (MCI) and have it notarized once approved. You will need this to accomplish your Commercial Registration (CR) and obtain your Tax Number.
4
Register Your Company Name
Decide on a company name that fits your business, then have this reserved and approved by the Unified Centre.
5
Apply For Commercial Registration
A commercial registration certificate indicates that your business is legally registered and authorized to operate in Saudi Arabia.
6
Register Your Company’s National Address
By registering a national address, your company can ensure it complies with the relevant regulations and benefits from improved government services and communication.
7
Register With The Government Departments
Once your company has obtained its commercial registration certificate, it must then register with several government departments, including the General Organization for Social Insurance (GOSI), the Zakat, Tax and Customs Authority (ZATCA), and the Ministry of Human Resources and Social Development (HRSD). Each of these departments has specific requirements and procedures for registration.
8
Open Your Corporate Bank Account
Lastly, you are required to open a bank account in Saudi Arabia for all your business transactions. You must open it within 90 days of receiving your Commercial Certificate.