How to register a business in Saudi Arabia?
Saudi Arabia is considered one of the rising economies in MENA, and the government is inviting business investors across the globe to register their companies in the nation. For this, the government has already loosened up by introducing flexible corporate laws and making the procedures much simpler than in the past. You require a MISA license in KSA if you are planning a business setup in KSA. This license was earlier known as the SAGIA license in Saudi Arabia.
Why to setup business in KSA?
The Kingdom of Saudi Arabia, or KSA in short, can be considered a growing business hub of the GCC apart from the UAE. A business setup in KSA is a profitable move in the long run, as Saudi Arabia is one of the biggest economies in the world. But the reasons why entrepreneurs or businessmen want to register a business in Saudi Arabia are that for the flourishing growth of businesses, the nation provides many benefits, including flexibility in taxation, rules, regulations, and financing, along with laws that are less strict. The rise in population of Saudi Arabia, which is over 36 million as of 2023, is also a major reason why business enthusiasts prefer the nation. Moreover, the strategic framework ‘Saudi Vision 2030’ can be considered a great initiative as it invites business investors to create job opportunities for its people.
Obtain a license for your company registration in Saudi
For license issuance for your company, you must stick to the procedures and conditions listed in the investment manual published by the Ministry of Investment. According to this, foreigners can think about a business setup in KSA, subject to rules. Below is listed the step-by-step process for your company formation in Saudi Arabia.
This is the very first phase before you actually begin setting up a company in Saudi Arabia. For this, keep in mind the following points:
- Determine your business structure and industry.
- Find a suitable trade name.
- Draft a business plan.
- Submit all the essential documents.
- Get approval from concerned government authorities.
- Find an attention-grabbing location for your physical office.
Business incorporation stage
After completing the pre-setup stage of the company registration in Saudi Arabia, we move onto the next phase, which is the business incorporation stage. For this, you should take all the steps listed below.
- Get your investment license from the Ministry of Investment Saudi Arabia (MISA).
- Note the Articles of Association
- Obtain your commercial registration.
- Register the company’s national address.
- Register with various government departments for taxation, etc.
- Open a corporate bank account for your company.
Documents needed for setting up a company in KSA
To register a business in Saudi Arabia, you have to make sure that all the essential documents are translated into Arabic before submission. Here is a list of important documents that you should never miss submitting for your company’s formation.
- Company registration application form.
- Third-party approvals.
- Approval from the parent company for incorporating the KSA entity.
- Address and identity proofs of shareholders and directors.
- Bank account reference letter.
- Articles of Association (AOA).
- Trade name confirmation copy.
- Blueprint of the business.
- Memorandum of Association (MOA).
- Power of attorney for the third party to represent the parent company.
Cost to setup a company in Saudi Arabia
The amount you have to spend while setting up a company in Saudi Arabia is totally based on the type of business you are planning to launch. The following are the important areas where you might not be spending enough, apart from the capital that you invest in the company.
- Investment license at GIA (General Investment Authority).
- Chamber of Commerce membership registration.
- Legalise/notarize documents.
- Create a corporate bank account.
- Publish in the official gazette.
- Establish an office.
- Commercial registry registration.
Top Business ideas in Saudi
Before planning for your MISA license in KSA or the SAGIA license in Saudi Arabia, get to know some excellent business options in Saudi Arabia (Include the link to our blog What are the top business opportunities in Saudi Arabia) that could become successful and help you reap profits.
- Cargo and courier company
- Travel and tourism
- Luxury goods
- Solar energy
- Real estate
- Language services
- Building materials
- Maid recruitment
Company Registration in Saudi Arabia: a final word
The procedure of company formation or obtaining a MISA license in KSA or a SAGIA license in Saudi Arabia is comparatively simple due to the corporate laws of the Saudi government. But you should be aware of all the legalities involved before launching your business in the Kingdom of Saudi Arabia. For this, it is better to consult an expert in the field like Trustlink Services, who are also experts in providing various services in Qatar.
Keep in mind the following to avoid any future problems:
- It is important to provide evidence of the financial capability of the company. For this, you can submit the bank savings of the company once it gets registered with the Ministry of Commerce.
- Have sufficient knowledge about the region where you are planning to launch your business. Also collect information about your competitors, targeted market, and other government requirements.
- Earlier, it was a strict rule in Saudi Arabia for foreign corporations to have a local partner who was a majority shareholder. But now this restriction is invalid, and the investor can be the sole owner. But still, it would be a great idea if you could have a local partner for your business.
All the procedures for setting up a company in Saudi Arabia are hectic, and you need someone who is professional to deal with all of them. We have been a trusted partner in this field for years, and you can faithfully entrust your company formation dream in our hands. We have been able to build a strong customer base over the years because of our customer-centric approach. Transparency in dealings, experience in the field, and professionalism in anything and everything we do are what make us different from any other competitor. That’s why our clients entrust us with tasks such as obtaining a MISA license in KSA. If you also want to know about company formation in Qatar, then we are the right ones for you. For more details you can contact us, and we will get back to you.