Understand the Jurisdictions Setup Requirement Before Proceed Your Saudi Arabia Company Incorporation Services
Saudi Arabia is also popularly known as the Kingdom of Saudi Arabia (KSA), and it is in the top 20 of the world’s best economies. It is also the largest peninsula in the Middle East and Arabia. Most of its economy depends on oil. 16% of the world’s petroleum and 5% natural gas comes from Saudi Arabia. In recent years, KSA has taken a lot of business-friendly initiatives to attract foreign investors.
If you are interested in expanding your business in Saudi Arabia, you must first complete the incorporation process. Find out now how you can do it:
Ministry of Commerce & Industry KSA
This is the authority of company registration for limited liability companies in Saudi Arabia. To become a shareholder, a foreigner should have a foreign capital investment license. It should be issued by the Saudi Arabian General Investment Authority SAGIA.
SAGIA prescribes capital requirements for LLCs that have foreign participation and/or local partners. These are:
- For the general trading companies: SAR 100,000
- For the general manufacturing companies: SAR 1,000,000
- For the companies that invest in agriculture: SAR 25,000,000
There should be at least one shareholder to form a company in KSA. After that, the licensing is issued to the LLC, which must be registered under the Ministry of Commerce and Investment. The formalities of the registration process of company registration in Saudi Arabia are the following:
Reserve a Company Name
The Ministry of Commerce and Industry is the company authority of registration in Saudi Arabia. Normally, a name that has been reserved stays valid for two months. After that, the process must be done again. The process only takes one day if you do it online, but this is free of charge.
Submit the Articles of Association and Notarization
The Unified Center (UC)/Companies Department is the authority for this. It only takes one day to complete this process. They do not charge anything to submit documents and authentication. The noting takes at least three days, and it is free.
Open a Bank Account
You need to open a bank account where the capital will be deposited to open your business. It usually takes only one day to complete this process.
Get a License for Your Business Location
You can get this at the Municipality and Post Office. This only takes one day, and there is no charge for it.
Pay the Fee for Registration
The authority is the bank inside the Unified Center. The processing time is one day. The registration fee is SAR500. An additional SAR650 is needed to publish the summary of the Articles of Association.
Certificate of Registration
The Unified Center (UC) Companies Department can obtain the company registration certificate in Saudi Arabia. It might take two working days to complete this.
Membership Fee and Authorization
Pay the membership fee at the Chamber of Commerce, and they should also sign the authorization.
Register at the Ministry of Labor
The process needs one working day to complete, and this does not cost anything.
Register with the General Organization for Social Insurance (GOSI)
The General Organization for Social Insurance GOSI is where you should go. This takes two workings, and it is free.
Registering with the Department of Zakat (DZIT)
The Authority is the Department of Zakat (DZIT). It will take 2 to 3 days to complete the process of registration.
Why Open a Business in Saudi Arabia?
Saudi Arabia is popular for its oil industry, and it has the largest free-market economy in North Africa and the Middle East. Its approximate share is 25% of the total Arab GDP. Its geographic location gives easy access to many export markets, including Asia, Europe, and Africa. The domestic consumption is mostly because of the wealthy and young community.
They have the highest level of a business climate that is safe and secure. The political stability in KSA has low energy cost and allows 100% foreign ownership. This is in the retail and wholesale sectors as part of a vast privatization program. The country’s big policy reforms have been conquered, giving them a rank among the top 10 business climate improvers.
If you want to set up a business in Saudi Arabia, get in touch with 3E Accounting. You will be in the best hands if you get their services (such as company set up), and these experts will not leave you hanging. They also offer other business needs that will be beneficial to your business.