Company Formation Services in Saudi Arabia
You can take a look at the best possible ways to set-up your business in Saudi Arabia; different types of structures of companies in Saudi Arabia and the requirements to set-up your company in Saudi Arabia.
- We assist you to register your company in Saudi Arabia
- We look out for the best suited local partner or sponsor for your business
- We would work to accomplish your requirements for business set-up
- Our team of PROs would register your company and acquire necessary licenses.
Take a glance at the easy steps to register a company in Saudi.
The Kingdom of Saudi Arabia is located in the Middle East Region and through the oil and gas discovery, extraction and exports have remained the strong pillars of the nation’s economic growth; the government is encouraging investments in different other sectors.
Due to the friendly policies for the foreign direct investments and the perks, the business houses receive, many investors and entrepreneurs from across the globe are planning for expansion through Starting a Business in Saudi. Eventually, the nation is among the top economies executing the policies for easy formalities to conduct various businesses.
Highlights of the foreign investment policy:
- It is mandatory to acquire a foreign capital investment license as per the regulations issued in April 2000 and the norms issued in 1979.
- Through this license, the companies can enjoy the privilege of Saudi owned company such as freehold property, anti-double taxation treaties with various countries; rights to the branch offices as per the regulations and much more.
- The foreign companies willing to start a branch in Saudi Arabia need to make a security deposit in a local branch till they receive the certificate of registration from the Ministry of Commerce and Industry.
Joining hands with the reputed agency for attaining PRO motives:
The aspiring foreign companies or the native entrepreneurs planning for Company formation in Saudi need a helping hand for Public Relation Officer (Mandoob) Services to complete the company formation related formalities.
Benefits of Registering a Company in Saudi Arabia:
- International businesses can start their operations in Saudi Arabia conveniently.
- The process of entering into local agreements, renting an office space and acquiring Visa for the staff can be simplified.
- Saudi Arabia ranks twelfth for ‘ease of doing businesses’.
- Saudi Arabia General Investment Authority avails perks for the foreign investments.
- The companies can opt for 100% foreign ownership in various sectors acquiring a license from the Saudi Government.
- Depending upon the business sector, the requirement for the initial capital investment for an LLC varies.
- Initial capital investment requirement for a contracting company is SR 500,000; and for an agricultural sector venture requires SR 25,000,000.
- The international traders can get tax benefits for their investments in sectors other than oil and gas.
- The projects with 25% Saudi participation can avail tax exemption for the initial 10 years period.
- The companies can open corporate bank accounts across the globe based on the incorporation in Saudi Arabia for convenience in international transactions.
Company Formation Steps in Saudi Arabia:
Finding A Partner:
As a mandatory step due to the matter of policy, the companies need to look out for a local partner or sponsor, for their business entity with the ownership share as per the regulations.
This is an important step in the process of Saudi company formation as the companies need to determine the legal framework of their business considering the regulations and also to achieve their business goals. The team of talented and experienced PROs and management consultants would assist the corporate clients to choose the best option out of the available possibilities and set-up the business in Saudi Arabia.
We offer complete support for the formalities to register a new company to the clients accomplishing the process of acquiring important approvals and registration.
- Checking the availability of licenses for the particular product range or services.
- Approvals from Ministry of Industry & Economy, as well as Foreign Capital Bureau for Industrial License submitting the application in Arabic & English as per the regulations.
- Acquiring the license from the Foreign Capital Investment Committee and its renewal after every six months.
- Registration with the Ministry of Commerce
In this way, we assist the corporate clients to start their ventures in Saudi Arabia, according to the regulations, on expected time and affordable annual plans that are cost effective.
Legal Structure of Company in Saudi Arabia:
There are regulations regarding the incorporation of the companies in Saudi Arabia and following are the accepted legal frameworks for the companies.
- General Partnership & Limited Partnership Company
- Partnership Limited by Shares
- Variable Capital Company
- Joint Stock Company
- Cooperative Company
General Partnership & Limited Partnership Company:
This is also known as group of companies and requires at least one general partner who would be liable for his personal assets as well. There can be two or more partners in the management of the operations.
Partnership Limited by Shares:
At least one general partner and at least four limited partners with negotiable shares of equal value can form this type of company.
Variable Capital Company:
The overall investment in the company varies either by increase in the number of associates, or their share capital; and may be decreased by disinvestment by the associates or withdrawal of association by some of the associates.
Joint Stock Company:
Five or more investors form the organization and would be liable for their share of investment. Acceptance of Reverend, or Issue of a Royal Decree would be essential for formation of this type of company.
In order to achieve cost reduction, lowering prices for certain products and better quality; the LLC or a Joint Stock Company can be integrated as a Cooperative Company. The investments of the various entities forming this company may vary and needs to be separated into the stocks of equivalent value.