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 focus	You can do business anywhere in the country, covering a variety of industries	Can only do business in certain FEZs
Regulatory and legal acts	Must follow the rules and regulations set by the Saudi government	Regulated by the rules of a particular FEZ. Exempt from customs duty for certain activities
Tax	20% income tax
Ownership and sponsorship	Foreign ownership is somewhat limited. There is often a need for a local sponsor	100% ownership of certain activities in certain LEZs. No local sponsor is required.
Target audience	Mainland serves a wide range of business activities	Primarily 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

Still have questions?

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

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