Step-by-Step Business Setup Guide in Saudi Arabia

Saudi Arabia is one of the most attractive destinations for entrepreneurs and investors who want to start or expand their business in the Middle East. The country offers a stable and diversified economy, a strategic location, a business-friendly environment, a world-class infrastructure, and a high quality of life. However, business setup in Saudi Arabia can be a complex and challenging process, especially for foreigners who are not familiar with the local laws and regulations. There are different types of trade licenses, legal structures, jurisdictions, and requirements that need to be considered before setting up a company in Saudi Arabia.

In this article, we will provide you with a step-by-step guide on how to set up a business in Saudi Arabia, and how TrustLink can help you with your company formation in Saudi Arabia.

Step 1: Obtain an investment license from the Ministry of Investment Saudi Arabia (MISA)

The first step to start a business in Saudi Arabia is to obtain an investment license from the Ministry of Investment Saudi Arabia (MISA), formerly known as the Saudi Arabia General Investment Authority (SAGIA). This license allows you to conduct a specific type of business activity in Saudi Arabia, and grants you various benefits, such as 100% foreign ownership, tax exemptions, customs duty waivers, repatriation of profits and capital, etc.

To obtain an investment license from MISA, you need to apply through the MISA portal, along with the following documents:

• A copy of your passport or ID card of the General Manager.
• Certification of Incorporation of the parent company.
• Articles of Association of the parent company.
• Audited Financial Statements of the parent company.
• Power of Attorney.

The application fee for the investment license is SAR 2,000, and the processing time is usually 10 working days.

Step 2: Prepare the articles of association.

The articles of association are the legal document that defines the structure, rules, and regulations of your company in Saudi Arabia. They include information such as the name, purpose, capital, shareholders, directors, and managers of your company.

You need to get the articles of association notarized by a licensed notary public in Saudi Arabia, who will verify the identity and signatures of the parties involved, and stamp and seal the document. The notarization fee depends on the type and size of your company, and the notarization process may take up to 5 working days.

Step 3: Get your Commercial Registration

The commercial registration is the official document that registers your company in Saudi Arabia and allows you to conduct your business activities legally. It includes information such as the name, address, activity, capital, and owners of your company.

You need to get your commercial registration issued by the Ministry of Commerce and Industry (MOCI), which is the authority responsible for regulating and supervising the commercial sector in Saudi Arabia.

Step 4: Register your company’s National address

The national address is the standardized and unified address system in Saudi Arabia, which consists of a postal code, a building number, a street name, a city name, and a region name. It is mandatory for all individuals and entities in Saudi Arabia to register their national address with the Saudi Post, which is the national postal operator in Saudi Arabia.

You need to register your company’s national address through the Saudi Post online portal, along with the following documents:

• A copy of your commercial registration certificate.
• A copy of your lease agreement or a letter of intent for your office space (see step 6).
• A copy of your passport or ID card.
• A copy of your visa or residence permit (if applicable).

Step 5: Register with government departments for taxation, insurance and hiring employees

After obtaining your commercial registration and national address, you need to register your company with the relevant government departments for taxation, insurance and hiring employees. These include:

• You need to register your company with GAZT through the GAZT online portal, and file and pay your tax returns on a quarterly or annual basis, depending on your company type and size.
• You need to register your company and your employees with GOSI through the GOSI online portal, and pay your monthly contributions based on your payroll and employee categories.
• You need to register your company and your employees with MHRSD through the MHRSD online portal, and comply with the labor laws and regulations, such as the Saudization program, the wage protection system, the labor dispute settlement system, etc.

You can check the requirements, fees, and procedures for each registration through the respective online portals or by contacting the respective customer service centers.

Step 6: Open your corporate bank account

The final step to set up a business in Saudi Arabia is to open your corporate bank account, which will allow you to manage your finances and transactions in Saudi Arabia. There are many local and international banks operating in Saudi Arabia, such as Al Rajhi Bank, National Commercial Bank, Riyad Bank, Samba Bank, HSBC, Citibank, etc.

You need to choose a bank that suits your business needs and preferences, and visit the nearest branch to open your corporate bank account, along with the following documents:

• A copy of your commercial registration certificate.
• A copy of your investment license from MISA.
• A copy of your notarized articles of association.
• A copy of your national address registration certificate.
• A copy of your passport or ID card.
• A copy of your visa or residence permit (if applicable).
• A bank reference letter or a bank account statement (if applicable).

Why Choose TrustLink for Business Setup in Saudi Arabia?

TrustLink is a leading business setup and consultancy firm that can help you with business setup in Saudi Arabia. We have the expertise and experience to guide you through the entire process, from choosing the right trade license, legal structure, and jurisdiction, to obtaining your license, registering your company, and opening your bank account. In addition to that, we also provide you with other services that can help you run your business smoothly and efficiently, such as handling your accounting and auditing needs, ensuring your legal and compliance matters, assisting you with your visa and immigration issues, and offering your business support and outsourcing solutions. TrustLink is your trusted partner for business setup in Saudi Arabia. Contact us today and let us help you start your business in Saudi Arabia.