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Company registration in Saudi Arabia

Company registration in Saudi Arabia

Saudi Arabia is among the richest countries in the Middle East. Entrepreneurs from all over the world are planning to open businesses here. If you are one of them, look no further.

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Различия между материковой частью и особой экономической зоной (ОЭЗ)

In Saudi Arabia, free zones are known as Special Economic Zones (SEZs). Both mainland and Special Economic Zones (SEZs) offer investors and entrepreneurs a variety of opportunities.

Here are a few key factors to consider before you decide to start a business in Saudi Arabia:

 Mainland FEZ - Special Economic Zones
Location and focusYou can do business anywhere in the country, covering a variety of industriesCan only do business in certain FEZs
Regulatory and legal acts Must follow the rules and regulations set by the Saudi governmentRegulated by the rules of a particular FEZ. Exempt from customs duty for certain activities
Tax20% income tax 
Ownership and sponsorshipForeign ownership is somewhat limited. There is often a need for a local sponsor100% ownership of certain activities in certain LEZs.
No local sponsor is required.
Target audienceMainland serves a wide range of business activitiesPrimarily focused on companies operating in specific growth sectors.

Advantages of starting a business in Saudi Arabia

  • Low crime rate
    • Financial incentive
      • 100% foreign ownership
        • Standardized support network
          • Business-friendly environment
            • Proper guidance from the authorities
              • Comparatively low capital investments
                • One of the richest economies in the world
                  • Minimum sales tax and income tax in comparison
                    • Physical presence is not required (conditions apply)
                      • One of the fastest and most streamlined business setup processes available

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                        The process of starting a business in Saudi Arabia

                        • 01
                          Determine the business activity structure of your business. The legal structure is also known as the legal entity. Below is a list of legal entities you can choose from before starting your business:
                          • Technical and scientific services office
                          • Limited liability company (LLC)
                          • Branch of a foreign company
                          • Joint Stock Company (JSC)
                          • Regional Headquarters
                          • General partnership
                        • 02
                          Reserve the company name
                        • 03
                          Drafting and notarization of a Memorandum of Association (MOA) or Articles of Association that will outline the purpose, capital and governance structure of the company.
                        • 04
                          Opening a local bank account in Saudi Arabia. Depositing the minimum required authorized capital in a bank account. Capital requirements vary depending on the type and structure of the business.
                        • 05
                          Filing documents with MCI to obtain a certificate of commercial registration (CR).
                        • 06
                          Tax accounting: Registration for Taxation Purposes with the Tax and Customs Authority (ZATCA).
                        • 07
                          Obtaining a municipal license from the local municipality where your business is located.
                        • 08
                          Industry approvals: Depending on your business activities, industry approvals or permits may be required from the appropriate government agencies.
                        • 09
                          Foreign Investment License (if applicable): Foreign investors need to obtain a foreign investment license from the Saudi Arabian General Investment Authority (SAGIA).
                        • 10
                          Registration with the Bureau of Labor: Registering with the Ministry of Human Resources and Social Development and obtaining visas for its employees.
                        • 11
                          Employment Contracts: Preparation of employment contracts in accordance with Saudi Arabian labor laws.
                        • 12
                          Visas and work permits: If necessary, we process visas and work permits for foreign employees.
                        • 13
                          Commercial lease agreement: Negotiating a lease agreement for your business space.
                        • 14
                          Health and Safety Inspectorate: Passing a health and safety inspection as required by the local authority.
                        • 15
                          Registration of the company with the local Chamber of Commerce and Industry.
                        • 16
                          Compliance with post-registration requirements: Comply with post-registration requirements such as filing annual financial statements and license renewals.

                        It's important to note

                        Specific requirements and procedures may vary depending on your business. Your location in Saudi Arabia and changes in legislation also play a role. Working with professional business advisory firms is essential to effectively manage the company formation process.
                        This ensures compliance with all legal and financial regulatory requirements. The Saudi Arabian business environment is constantly evolving. It is therefore essential to keep up to date with the latest regulations and requirements.

                          The total cost of starting a business in Saudi Arabia depends on

                          • 01
                            The size of the office space you decide to build
                            • 02
                              The business activities you choose to conduct
                              • 03
                                The number of employees you recruit
                                • 04
                                  Locations of your business

                                  BCA will help you do business abroad correctly

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                                  average response time to request
                                  5 languages
                                  6 offices
                                  10 days
                                  average service delivery time

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