Saudi Arabia is a nation that is positively flourishing. Very popular for its oil industry and with a free market economy, the country has successfully established itself as one of the leading economies in the Middle East and North Africa region. In recent years, its political stability and its business-friendly ecosystem make it much easier for entrepreneurs to set up a company here.
If you're not a citizen of Saudi Arabia, it's important to know that foreign investors are required to follow certain steps to start a business in the country. This typically means obtaining a foreign investment license from SAGIA and then completing the incorporation process at MOCI and other government departments.
Before you commence with engagement, it is vital that you are aware of some of the information about setting up a company in Saudi Arabia. Take a look.
With no minimum capital required, starting a business in Saudi Arabia has been made easier nowadays with the policies implemented to encourage entrepreneurs. Foreign investment is screened by the government at first and direct purchase of shares in Saudi companies which are listed on the stock exchange has been permitted since 2015, opening the market to foreign institutional investors.
Plenty of incentives attract the investors' interest to establish a company in Saudi Arabia. Though the process of setting up a business in Saudi Arabia is pretty complicated, we at Company Hubs can help you out. Our team of in-country experts takes care of every nitty-gritty detail involved in the company formation in Saudi Arabia, making your experience time-efficient and cost-effective.
Corporations are one of the most common types of business structures around. These organizational forms necessitate having at least one shareholder who may be an individual or another corporation. However, in case there are more than 20 shareholders involved, they'll need to appoint a Board of Directors (BD) to assist the directors with overseeing operations. Corporations can engage in any activity allowed under their approved objectives of the business.
Foreign investors who are looking to establish a large-scale operation can choose from a few different business options. One of those choices is the joint-stock company, which can be owned fully by one or more natural persons or companies that may be foreigners. To operate as a joint-stock company, your organization will need to appoint an auditor and file audited financial statements each year.
Limited Partnership Company is another Saudi Arabia company registration method. Creating a limited partnership company may be ideal for foreign entrepreneurs who may not be familiar with the business market. This form of the entity only has two members minimum, one of which must be a director. There is no minimum capital requirement for this type of business to be established.
After acquiring the required approval from Saudi Arabia’s concerned authority, foreign companies can open a branch in the country. Though a branch office is allowed to operate the commercial activities, it has to be within the scope of approval issued by the authority.
A representative office in Saudi Arabia can be opened by an individual, which can be controlled by the parent company.
If you are also looking forward to enlisting the business incorporation services for corporate registration in Saudi Arabia, feel free to get in touch with us.
We are a team of passionate and dedicated experts who are geared towards helping our domestic and international customers get a smooth and speedy experience of establishing a company in Saudi Arabia. Get in touch today!