ENG
ARABIC
Looking for a dynamic and varied environment to start a new company? Saudi Arabia is the only place to look. It accounts for almost a quarter of all economic activity in the MENA region and has an astounding 700 billion dollar economy.
All kinds of industries, from manufacturing and agriculture to pharmaceuticals and services, are present in that thriving market. And whether you are a citizen of the GCC or from somewhere else, it’s simple to get established in any of them with the right support.
A growing number of foreigners live in Saudi Arabia, drawn by the country’s open economy, easy company formation processes, and effective tax structure. Continue reading to learn everything you need to know about company formation in Saudi Arabia if you’d like to join them.
Advantages of foreign entrepreneurs establishing businesses in Saudi Arabia
There are many excellent social and economic reasons to establish a business in Saudi Arabia. Starting with the latter, it has among the lowest rates of crime and among the highest standards of healthcare and education in the entire world.
Foreign entrepreneurs operating here also profit from low income and sales tax obligations as well as an excellent support system, especially for businesses unrelated to the oil industry.
Due to its improved ease of doing business, Saudi Arabia is also growing in popularity. Because of its advancements in this area, the kingdom last year outperformed India, Qatar, and Luxembourg in the World Bank Doing Business Index.
How foreigners can start a business in Saudi Arabia
You should schedule a free consultation with athinkdirect BPO before beginning the process of applying for your business license. Before assisting you with the next step, we will first help you fully comprehend how businesses are set up in Saudi Arabia.
Step 1 – Choose your industry and business structure
You must first briefly describe the field you want to work in and the tasks you plan to carry out. This will determine whether it is best to set up in a free economic zone or on Saudi Arabia’s mainland. Additionally, it will determine the kind of license and legal entity you need.
Step 2 – Business location
Starting in 2023, Saudi Arabia won’t grant licenses to foreign businesses that don’t have a regional headquarters there. In order to establish a branch company, you must either rent a place of business or work with a local service agent.
If you are launching a new business, you have two options: lease space on the mainland or sign up for a license package in a free economic zone.
Step 3 – Obtain an investment license
An investment license is necessary if you are a foreigner seeking to launch a business in Saudi Arabia. The Saudi Arabia General Investment Authority (SAGIA) has issued this. With this in hand, you can make investments in the nation, acquire or found a new business, or establish a branch abroad.
At this time, you must also submit an application for a commercial registration certificate with the Ministry of Commerce and Investment.
Step 4 – Additional paperwork
The Ministry of Commerce will require a few more documents, and once more, Creative Zone can assist you in obtaining them.
To get your memorandum of association and your issuance of commercial registration, we’ll communicate with the appropriate organizations. You must designate a General Director and submit the following paperwork to confirm the incorporation of your company:
- Director and shareholder identification and address documentation
- copies of shareholders’ and directors’ passports
- a certified trade name copy
- Association Memorandum (MOA)
- Articles of Association (AOA)
- • Bank reference letter
To live, work, and reside in Saudi Arabia, you will also require a business visa. Once more, Creative Zone can oversee this process on your behalf.
Saudi Arabia’s starting-up costs for businesses
The overall cost of starting a new business in Saudi Arabia will vary depending on a number of variables. Your company’s size and type, personnel levels, and location of your facilities will all be important factors.
Yes, it is easy to setup a business in Saudi Arabia but with the help of Thinkdirect BPO.
Get in touch with Thinkdirect BPO for a free consultation to receive an extensive and individualized breakdown of the costs associated with launching your Saudi company.
