Set Up Your Company


in Saudi Arabia

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Saudi Arabia has emerged as a vibrant destination to start a business. The country is home to enormous natural resources like oil and fuels, which have driven its economy for many years. In addition, it also houses robust industries in machinery, dairy products, and pharmaceuticals which makes for a vast and diverse economy.
Further enhancing Saudi Arabia’s business landscape are policies that open the economy to investments and new businesses, some of which are listed below. These make the Kingdom of Saudi Arabia the ideal place for investors in the Middle East.

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Advantages of Setting Up Your Business
in Saudi Arabia

All foreign companies can benefit from the numerous incentives the Kingdom of Saudi Arabia provides to businesses.

A business-friendly environment

The recently enacted New Companies Law has provisions indicating what Saudi Arabia company types can be set up, including new business forms to accommodate more preferences. The law provides limited liability companies (LLCs) with a larger access to finance, alongside other benefits.
The kingdom also offers extensive support to SMEs through its Small and Medium Enterprises General Authority, Monsha’at. This state-run authority offers incubators, accelerators, lending programs, and co-working spaces to allow small Saudi Arabia businesses to thrive.

An ideal standard of living

Saudi Arabia is one of the safest countries worldwide. In 2020, the Kingdom was recognized as the safest among all G20 nations, with a low crime rate. Residents also enjoy a high standard of living in Saudi Arabia, with reasonable costs and adequate government support. Setting up a company in Saudi Arabia is a strong option, whether you are a GCC resident or a foreigner looking for a place to relocate or set up a secondary home.

Growing diversification

As part of its Vision 2023, the kingdom is working towards a more diverse economy with offerings that go beyond the typical Saudi Arabia oil company. The goal is achievable, as non-oil industries already contribute 58.9% to the GDP. To maintain or further this performance, Saudi Arabia is committing to a higher level of support for other sectors. They’re putting down efforts to increase foreign investment, creating programs to assist SMEs and startups, and expanding their tourism, transportation, and entertainment industries – among others.

Tax Incentives

In 2023, the UAE implemented a corporate tax rate of 9%. However, offshore companies, as they are not eligible to operate their businesses within the country, are exempt from this tax.

Cost of Setting Up Your Company in the Kingdom of Saudi Arabia

The cost to start a business in the Kingdom of Saudi Arabia would depend on several factors, and would differ if you are a GCC national or a foreign national.
It also depends on the business activities, number of shareholders, office space requirements, and other factors.
Receive an estimate of your business setup cost in Saudi Arabia.
Contact our business setup advisor now!
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Types of Companies Recognized
by the Kingdom of Saudi Arabia

Joint Liability
Company

Joint Liability
Company

Also known as a general partnership, a joint liability company is a straightforward entity in Saudi Arabia composed of two or more people equally liable for any of their firm’s obligations.
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Limited
Partnership
Company

Limited
Partnership
Company

This company type is one where there is at least one general partner who has an unlimited personal liability, and one limited partner whose liability is limited to their personal investment.
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Joint Stock
Company

Joint Stock
Company

Joint stock companies are firms owned by their investors. A shareholder can buy or sell shares and own a percentage of the company that corresponds with the number of shares they have.
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Simple Joint
Stock
Company

Simple Joint
Stock
Company

Simple Joint Stock Companies were created by the New Companies Law to meet the rising demand for startup and venture capital. These are flexible entities with simpler requirements compared to the traditional joint stock company.
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Limited
Liability
Company
(LLC)

Limited
Liability
Company
(LLC)

An LLC is one of the more common business types. It is a structure typically adopted by private companies, which protects the business owners’ personal assets should the firm ever be involved in a legal case.
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Requirement for Obtaining a
Business License in Saudi Arabia

The business formation requirements in Saudi Arabia may depend on the nature of the company, but the following documents are best to prepare and must be submitted in Arabic.
  • Parent Company’s Memorandum & Articles of Association
  • Attested Financial Statement for the Last Full Year
  • Business License/Trade License
  • Certificate of Incorporation
  • Board Resolution
  • Power of Attorney

Steps for Setting Up Your Business in Saudi Arabia

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1

Determine Your Business Activities

Choose the specific operations you want your business to take on in Saudi Arabia, as you must mention this in your application. It will also guide what company type will work best for you, which our team will help you decide.

2

Apply For The MISA Investment License

If you are a foreign investor, you will need a license from the Ministry of Investment Saudi Arabia, which oversees licensing for all foreign-owned companies in Saudi Arabia. Our specialists will assist you with your application, including information about your business and financial details.

3

Submit Articles Of Association

Submit your company’s Articles of Association to the Ministry of Commerce and Investment (MCI) and have it notarized once approved. You will need this to accomplish your Commercial Registration (CR) and obtain your Tax Number.

4

Register Your Company Name

Decide on a company name that fits your business, then have this reserved and approved by the Unified Centre.

5

Apply For Commercial Registration

A commercial registration certificate indicates that your business is legally registered and authorized to operate in Saudi Arabia.

6

Register Your Company’s National Address

By registering a national address, your company can ensure it complies with the relevant regulations and benefits from improved government services and communication.

7

Register With The Government Departments

Once your company has obtained its commercial registration certificate, it must then register with several government departments, including the General Organization for Social Insurance (GOSI), the Zakat, Tax and Customs Authority (ZATCA), and the Ministry of Human Resources and Social Development (HRSD). Each of these departments has specific requirements and procedures for registration.

8

Open Your Corporate Bank Account

Lastly, you are required to open a bank account in Saudi Arabia for all your business transactions. You must open it within 90 days of receiving your Commercial Certificate.
If you are calling from outside the UAE, please contact us on
or email us at Sales@bizhqconsultants.com
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Address: Office # 3500-02, Al Saqr Business Tower, Sheikh Zayed Road, Dubai.