Company Incorporation in Saudi Arabia
Unlock Success in Saudi Arabia
Advantages of Setting Up Your Business in Saudi Arabia
All international companies can take advantage of the numerous incentives offered by the Kingdom of Saudi Arabia to support business growth.
A business-friendly environment
Saudi Arabia also extends significant assistance to small and medium-sized enterprises (SMEs) through the Small and Medium Enterprises General Authority, known as Monsha’at. This government agency provides incubation facilities, accelerators, financial support programs, and collaborative workspaces, creating an environment conducive to the success of small businesses in Saudi Arabia.
Tax incentives
Enjoy enticing tax advantages in Saudi Arabia, including a low corporate income tax rate and zero personal income taxes, fostering a conducive business environment.
Expanding diversification
In alignment with its Vision 2023, Saudi Arabia is actively pursuing a more diversified economy, expanding beyond the conventional oil-based industry. This goal is within reach, considering that non-oil sectors already contribute 58.9% to the GDP. To sustain and enhance this performance, Saudi Arabia is intensifying its support for various industries. Efforts are being made to attract more foreign investment, implement programs to aid small and medium-sized enterprises (SMEs) and startups, and broaden the scope of industries, including tourism, transportation, and entertainment, among others.
An ideal standard of living
Startup Expenses for Establishing a Business in 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.
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.
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.
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.
- A summary of “compulsory” reported problems with a device since its introduction in the market
- Risk assessment involving risk analysis, evolution as well as reduction measures
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.
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.
- A summary of “compulsory” reported problems with a device since its introduction in the market
- Risk assessment involving risk analysis, evolution as well as reduction measures
Requirement for Obtaining a Business License in Saudi Arabia
The specific business formation prerequisites in Saudi Arabia may vary based on the company's nature, but it's advisable to have the following documents prepared and submitted in Arabic.
- Memorandum and Articles of Association of the Parent Company
- Duly Certified Financial Statement for the Previous Fiscal 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 we are ready to guide you
Define your core products or services and target market, aligning them with your mission and vision, ensuring a strong focus on competitiveness and customer engagement.
To apply for the MISA (Ministry of Investment and State-Owned Enterprises) investment license, consult the MISA website for application details and requirements, then submit your application along with the necessary documents to initiate the process.
To submit Articles of Association, draft a comprehensive document outlining your company’s internal rules and structure, and then file it with the appropriate government agency or authority in your jurisdiction as per legal requirements.
Register your company name with the relevant government agency, typically the Secretary of State or equivalent, by completing the required application and paying the associated fees to ensure legal protection and exclusive use of the name.
To apply for commercial registration, contact your local business regulatory agency, complete the necessary forms, provide required documentation, and pay the registration fees, ensuring your business is legally authorized to operate in the specified jurisdiction.
Register your company’s national address with the appropriate government authority or postal service, ensuring accurate and up-to-date location information for official communications and legal compliance.
Register your business with relevant government departments, such as taxation, labor, and business licensing, by submitting the required forms, documentation, and fees to establish legal compliance and ensure smooth operations.
To open a corporate bank account in Saudi Arabia, contact a local bank, provide the required business documents, including Articles of Association and a valid commercial registration certificate, and follow their specific account opening procedures. It’s advisable to consult the chosen bank for precise requirements and guidelines.