Simplify Your Business Setup in Saudi Arabia (KSA) with 100% Foreign Ownership
Sharks Business Services can help you start your business in Saudi Arabia. We make it easy to set up your company and help you succeed.
Would You Like to Know the Cost of Starting a Business in Saudi Arabia?
Get an estimated cost of starting a business in Saudi Arabia with our user-friendly cost calculator.
0
Years of Experience
0
International Market Presence
0
Company Formations in KSA
0
Professionals
Benefits of Setting up a Business in Saudi Arabia
Saudi Arabia, a global business hub, offers a favorable environment for foreign investment and business expansion. Recent reforms and the ambitious Vision 2030 initiative have significantly enhanced the Kingdom’s attractiveness as a destination for entrepreneurship. The government’s investor-friendly policies, including simplified regulations and pro-business laws, facilitate the establishment and growth of businesses.
With a diversified economy centered on oil, gas, petrochemicals, and tourism, Saudi Arabia presents numerous opportunities for investment. The government’s active promotion of foreign investment and measures to streamline business setup processes further enhance the Kingdom’s appeal. The Saudi Investment Fund’s strategic capital allocation stimulates private-sector investment, while the young and educated population offers a skilled workforce to support business endeavors.
Economic Growth
Saudi Arabia is one of the largest economies in the Middle East, making it an attractive place for investment
Natural Resources
The country is rich in natural resources, particularly oil and gas, presenting lucrative opportunities
Strategic Location
Saudi's strategic location provides access to European, Asian, and African markets.
Large Consumer Market
With a population of over 34 million, there's a sizable market for businesses.
6 Steps to Start a Business in Saudi Arabia
- Prepare necessary documents for company registration.
- Register for a license with the Ministry of Investment of Saudi Arabia (MISA).
- Finalize the Articles of Association (AoA).
- Receive the commercial registration (CR) license.
- Select business premises and register the national address.
- Complete the General Manager’s (GM) visit for a residency visa (iqama).
- Register the GM on company books and with government authorities.
- Open a corporate bank account at a Saudi bank.
- Complete post-incorporation registrations.
Setup your Business in Saudi Arabia with Sharks Business Services
As your trusted business partner, we provide comprehensive support for establishing 100% foreign-owned businesses in Saudi Arabia. Recognizing the diverse licensing requirements for different types of companies, we ensure that your enterprise operates seamlessly within the regulatory framework established by the Ministry of Investment of Saudi Arabia (MISA) and the Saudi Arabian General Investment Authority (SAGIA).
Our team of experienced Saudi business consultants offers expert guidance throughout the process of business setup and company formation. We carefully navigate the complexities associated with various company structures, including subsidiary companies, Limited Liability Companies, GCC companies, branches of foreign companies, and dual ownership companies, to ensure the successful establishment and operation of your venture in Saudi Arabia.
Process for Setting Up Business in Saudi Arabia.
From Saudi company registration to expanding your corporate setup in Saudi Arabia, Analytix will be your one-stop solution. Leverage our expertise as business setup companies in Saudi Arabia for personalized solutions. We offer the following company formation services:
Pre-Incorporation Steps
Prepare and lay down a pathway for your venture with innovative insights, planning and execution for corporate setup in Saudi Arabia
- Decide on your legal business structure
- Reserve the Company Trade Name
- Draft Articles of Association
- Publish and notarise Articles of Association
- Get your Commercial Registration issue
Business Incorporation Steps
Collaborate for a successful partnership with sharks for strategic guidance and effortless facilitation of your business setup and company formation in Saudi Arabia.
- Registered Office Address
- Resident Director
- Company Secretary
- Bank Account Opening
- Tax Registration
- Business Licenses
Post - Incorporation Steps
Overcome operational challenges of business setup in Saudi Arabia. After incorporation, ensure sustained profitability with our targeted post-incorporation support
- Activate Chamber of Commerce (CoC) account
- Health Insurance
- Medical Check up
- Issue the GM’s Iqama
- Register MUDAD - payroll system and compliance system
- Register QIWA - Visa and work permit services
- Register Muqeem Portal
- Registering for VAT
- Register Fasah licence (Import and Export Services)
- Obtaining Municipality License
- Opening Bank Account
Find the Right Solution
Register Company for Foreigner.
Register Company for GCC Nationals.
Special Economic Zones
(SEZ).
Regional
Headquarters.
Entrepreneur
License.
Premium
Residency.
Our Clients Says
Consulting WP really helped us achieve our financial goals. The slick presentation along with fantastic readability ensures that our financial standing is stable.
Amanda Seyfried
The demands for financial institutions have changed a bit. Obfuscation is no longer accepted, which is why this Business WordPress Theme is so perfect.
Debbie Kübel-Sorger
We Cover All Major Locations in KSA.
We enable business setup and company formation in Saudi Arabia for various business sectors in major locations, including.
Business Setup in Dammam
We have established our name as a prominent figure in the field of business setup in Dammam, from the initial company registration in KSA to the end process.
Business Setup in Riyadh
Sharks Business Services provides easy and cost-effective services for Business Setup in Riyadh services, promoting smooth operation and company formation.
Business Setup in Jeddah
We are your go-to partner for business setup in Jeddah providing feasible and integrated corporate solutions according to your requirements.
General Questions
- Industrial License: Needed for manufacturing or industrial activities.
- Service License: For service sectors like consulting, IT, finance, healthcare, and education.
- Trading License: Required for trading, importing, exporting, and distribution.
- Contracting License: For construction and contracting services.
- Real Estate License: For real estate development and management.
- Energy License: Energy sector, including oil, gas, and renewables.
- Telecom & IT License: Telecommunications and information technology
- Tourism License: For tourism, travel services, and hospitality.
- Media License: Media, publishing, broadcasting, and advertising.
- Medical License: Covers healthcare services, clinics, and equipment
- Educational License: Establishing educational institutions
The time required to complete the licensing process for a business in Saudi Arabia varies. It can take a maximum of 30 days, depending on factors like business type, documentation, and other processing. After application submission, there’s a review period, potential additional approvals, legal steps, and setting up the physical location. Staying updated with authorities and having complete documentation can help expedite the process.
Trade licenses get issued within a span of 7-15 days post the application submission.
Factors Influencing Business Setup Costs in Saudi Arabia
The cost of establishing a business in Saudi Arabia is contingent upon several key factors, including the nature of the enterprise, industry sector, desired location, and specific operational requirements. In 2024, the Kingdom’s ongoing efforts to streamline its Vision 2030 objectives and attract foreign investment have significantly impacted the overall cost landscape.
Breakdown of Costs:
- Company Registration: Establishing a limited liability company (LLC) with the Ministry of Commerce and Investment typically ranges from SAR 10,000 to SAR 20,000 (approximately USD 2,700 to USD 5,300).
- Licensing Fees: Additional licensing costs, varying between SAR 5,000 and SAR 30,000 (USD 1,300 to USD 8,000), may be incurred based on the specific business activity and industry sector.
- Office Space: The rental cost for commercial or office space generally falls between SAR 150 and SAR 500 (USD 40 to USD 133) per square meter per year. However, this can fluctuate depending on the location and size of the premises.
- Capital Requirements: The minimum capital requirement for a single-shareholder LLC is approximately SAR 300,000 (USD 80,000), while multi-shareholder LLCs require a minimum capital of SAR 500,000 (USD 133,000). The Saudi Arabian General Investment Authority (SAGIA) may impose higher capital requirements for certain industries or sectors within the Kingdom.
- Professional Fees: Legal and consultancy services associated with company formation, licensing approval, and other related procedures can range from SAR 20,000 to SAR 50,000 (USD 5,300 to USD 13,300), depending on the complexity of the business setup.
- Accounting and Auditing: Annual accounting and auditing services are estimated to cost between SAR 10,000 and SAR 30,000 (USD 2,700 to USD 8,000).
- Workforce Costs: Businesses hiring foreign employees must allocate funds for work visas and residency permits, which typically range from SAR 5,000 to SAR 10,000 (USD 1,300 to USD 2,700) per employee.
Government Incentives:
It is important to note that the Saudi government offers various incentives and reductions for businesses operating in specific sectors or locations within the country. These incentives, including reduced fees, tax exemptions, or subsidies, can significantly impact the overall cost of business setup and operations.
The corporate tax rate in Saudi Arabia can vary depending upon several factors as listed below:
- For the companies owned by the Saudi nationals or citizens of other Gulf Cooperation Council (GCC) countries the corporate tax rate is 20%
- The corporate tax rate is 20% for companies owned by non-GCC nationals on the share of non-Saudi or non-GCC partners and nil for the share held by Saudi or GCC partners.
- The corporate tax rate is 30% for companies indulged in the activities of natural gas investment activities
- For oil and other hydrocarbon production companies, the corporate tax rate is 85%.
Though there are many tax rates in Saudi Arabia as listed above, it is important to note that the Kingdom of Saudi Arabia has signed double taxation avoidance agreements with several countries, and this can leave a great impact on the existing tax rate for foreign companies in KSA.
Also for businesses operating in specific sectors or locations in the Kingdom, like economic cities or industrial zones, many tax incentives and other exemptions are available.
There are many ministries responsible for setting up a business in Saudi Arabia like the few mentioned below:
- The Ministry of Commerce and Investment (MCI) is responsible for the registration of the companies and licensing them and regulates the commercial activities in the Kingdom.
- The Ministry of Human Resources and Social Development (MHRSD) oversees the work permits, labour laws, and visa requirements required for foreign employees.
- Issuance of permits, regulation of real estate activities and approvals for various construction and development projects are handled by the Ministry of Municipal and Rural Affairs and Housing
- The Saudi Arabian General Investment Authority (SAGIA) oversees the promotion of foreign investment in Saudi Arabia and lends support and incentives to foreign investors.
Besides these ministries, other ministries like the Ministry of Industry and Mineral Resources, the Saudi Food and Drug Authority, or the Capital Market Authority, would also be involved depending upon the industry or sector chosen.
Yes, the companies are allowed to engage in multiple activities in Saudi Arabia, but are subject to certain conditions and regulations set up by The Ministry of Commerce and Investment (MCI).
Certain activities may require specific permits, licenses, or approvals from relevant authorities depending upon the nature of the businesses. For example, industries like finance, healthcare, or energy-related activities are subject to additional regulatory requirements.
While setting up a business in the Kingdom of Saudi Arabia, you have to clearly define the business activities planned in the company’s Articles of Association or commercial registration. Specific approvals from the MCI and amendments to the commercial registrations are required for any changes or additions to the business activities mentioned.
Seeking professional help from legal or business setup professionals would help ease the process and ensure compliance with all regulations.
There are many business structures available in Saudi Arabia for foreigners each with its benefits and limitations. Below are the most common structures available for foreigners in the country:
- Limited Liability Company (LLC):
This business structure offers limited liability protection for its shareholders. It requires a minimum of two shareholders and the percentage of foreign ownership can range from 0% to 100%, depending on the sector chosen.
- Branch Office:
A foreign company can set up the extension of a parent company in Saudi Arabia. Here it would be treated as a permanent establishment and no separate legal entity is required.
But requires sponsorship from the local Saudi service agent.
- Professional Company:
Foreign ownership for professional company can range from 0% to 100%, depending on the sector and it would be set suitable for professional services like consulting, engineering, or legal services
- Joint-Stock Company:
This type of business structure is best suitable for larger businesses with multiple shareholders. The minimum capital requirement for a Joint Stock company is SAR 5 million. The foreign ownership for these types of companies can range from 0% to 100%, depending on the sector
- Joint Venture:
A joint venture can be formed by a foreigner by establishing a partnership with a local Saudi partner. The percentage of ownership and control are shared based on the agreement kept between both partners.
The popular entity options available for businesses in Saudi Arabia are:
- Limited Liability Company (LLC):
This structure is popular among local and foreign investors as it offers flexibility and limited liability protection. LLCs can either be completely foreign-owned or can be done in partnership between Saudi and foreign shareholders. It is suitable for a wide range of business activities and is the most preferred one among different sectors.
- Branch Office:
A branch office is often considered as an entry point to the Saudi market by the Foreign companies. It is best suitable for businesses that wish to have a direct presence in the country without creating a separate legal entity. But a local Saudi service agent or sponsor is required to set up a branch office in the Kingdom.
- Joint-Stock Company:
This is most preferred by larger businesses which have multiple shareholders and requires substantial capital. Joint stock companies are offered with limited liability protection and it is best suitable for companies that is eyeing on getting a public listing on the Saudi stock exchange.
Various factors like the nature of the business, capital requirements, planned activities, long-term growth objectives, and ownership structure, determine the choice of entity. It is always preferable to consult legal and business advisors to choose the most appropriate entity option for your business.
Yes, a local sponsor or service agent of a foreign company has to open a branch office in Saudi Arabia as the sponsor is considered as the legal representative of the operations of the foreign company in the Kingdom.
Below we list the role of the local sponsor:
- Help the foreign partner to obtain necessary permits, licences, and approvals from relevant government authorities in the Kingdom.
- They have to act as a liaison between the Saudi government agencies and the foreign company.
- Local sponsor has to provide administrative and logistical support for the successful operation of the branch office’s.
- It is the responsibility of the local sponsor to ensure compliance with local laws and regulations.
Though the local sponsor has the above responsibilities, their role is typically limited to administrative and facilitative roles. It is important to note that they do not have any ownership or any control over neither operation of the foreign company nor on its branch office.
While selecting a local sponsor, it is required to check their connections, reputation and experience as all these will significantly impact the ease of operation of the branch office in Saudi Arabia.
Yes, in Saudi Arabia, the foreign capital investment is required to set up a trading business branch in the country. It is the Saudi Arabian General Investment Authority (SAGIA) responsible for overseeing the capital requirements for foreign companies who wish to establish their branch office in the Kingdom for trading activities.
SAR 2.5 million (approximately USD 667,000) is the minimum capital investment required to set up a trading business branch in Saudi Arabia. Even though this is slightly higher than the previous requirement of SAR 2 million, the Kingdom still continues to attract more foreign direct investment. The main purpose of the capital investment is to ease the operations of the company like leasing or purchasing office space, recruitment of the staff, procurement of the inventory, and to meet other operational expenses of the business related to the trading.
However, It’s important to note that there are variations on the capital investment requirement due to the variations in the specific trading activities and the nature of the goods traded.
Capital investments can either be made by depositing cash in a Saudi bank account or by transferring assets, like equipment, machinery, or inventory, into the Kingdom. As part of the branch office registration process, Foreign companies have to provide evidence of the capital investment to SAGIA.