Setting up a business in Saudi Arabia provides some fantastic opportunities and benefits. One of the most significant benefits of having business registration in Saudi Arabia is the generous tax allowances. With minimal liability for personal income tax and corporation tax sitting at 20%, foreign investors can operate far more comfortably than in other parts of the world. The Kingdom of Saudi Arabia also has a broad economy as it looks to expand from oil and gas. Because of this expansion, many more diverse industries are growing, making setting up business in Saudi Arabia more attractive.
What Are The Best Sectors for Saudi Arabia Company Formation?
With a constantly broadening economy in the Kingdom as it looks to diversify away from oil and gas, setting up a company in Saudi Arabia offers fantastic opportunities for multiple industries. We have completed the company registration process in Saudi Arabia for businesses in tourism and hospitality, engineering and technology, real estate, steel manufacturing, healthcare and pharmaceuticals, education, and finance. The Kingdom of Saudi Arabia offers a conducive environment for businesses, supported by the Companies Law Saudi Arabia, which provides a robust legal framework to ensure the smooth operation and governance of companies. Company setup in Saudi Arabia is more popular than ever, especially foreign company registration in Saudi Arabia. So, for first-class legal services and help to navigate the Saudi company register, contact SB Lawyers & Consultants and speak to the best company registration attorney in Riyadh.
What Types of Company Formation are Available in Saudi Arabia?
We think it’s fair to assume that when most people think of Saudi Arabia, they think of it for its vast oil industry. But, along with a massive oil industry, the Kingdom boasts the biggest free-market economy in MENA. Saudi provides excellent access to many export markets, including Asia, Africa, and Europe. Company registration solicitors in Saudi Arabia have become increasingly busy helping foreign and domestic investors with setting up companies. In Saudi Arabia, five types of company formation are available for setting up. Business in Saudi Arabia can be conducted using a Limited Liability Company (LLC), Joint Stock Company (JSC), Single Member Limited Liability Company (SMLLC), Limited Partnership Company (LPC), or a Joint Venture.
How Do I Set Up a Company in Saudi Arabia?
Any company wishing to conduct business in the Kingdom of Saudi Arabia is required to hold a license. There are various steps needed for foreign company registration in Saudi Arabia. Although not as complicated as in other parts of the world, it still requires a company registration solicitor in Riyadh. SB Lawyer & Consultants is one of the most experienced and well-respected business setup companies in Saudi Arabia. You can see from the processes listed below that company formation is quite intricate. Still, we have a team of professionals on hand to make the following pre-incorporation, incorporation, and post-incorporation stages efficient and fast!
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Pre-incorporation Process in Saudi Arabia
For any business setup, the pre-incorporation process is critical. Pre-incorporation necessitates the planning and strategy stage of the company incorporation procedure. In the course of company formation in Saudi Arabia, great thoughtfulness is paid to the type of business setup, the paid capital, and all license requirements. This stage of Saudi company formation is where the name of a company or business entity needs to be decided upon. Also, business setup lawyers in Saudi Arabia will guide you on whether an LLC, JSC, SMLLC, LPC, or Joint Venture is the correct business type. All relevant documents will be prepared, such as Power of Attorney, a Business License, Articles of Association, and a Certificate of Incorporation.
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Incorporation Process in Saudi Arabia
SB Lawyers & Consultants are well established and experts in all areas of KSA company formation. Saudi Arabia has several vitally important stages in the incorporation company registration process. In Saudi Arabia, company registration lawyers are accomplished at completing the following steps in a highly professional and timely manner. Now, let’s have a look at what’s involved!
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Application for Investment License
In the Kingdom of Saudi Arabia, every non-Saudi and non-GCC (Gulf Cooperation Council) investor must apply to the Ministry of Investment of Saudi Arabia (MISA) for an investment license. Company registration lawyers can complete the application form stating the nature and size of any investment activity being conducted. Once a company registration attorney in Riyadh completes a detailed application, MISA will provide you with a pre-approved certificate approving company incorporation with 100% foreign ownership of the company, or otherwise, if it was applied for.
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Articles of Association
The Ministry of Commerce and Investment (MOCI) requires the submission of Articles of Association (AOA) to be submitted and approved for company incorporation in the Kingdom of Saudi Arabia. An SB Lawyers & Consultants company registration solicitor in Riyadh can manage the process. Upon the approval of the Article of Association (AOA), the document must be notarized to gain a commercial registration certificate and tax number. The Saudi newspaper will publish the AOA and company name upon a business registration lawyer completing this process.
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Registration of Company Name
It’s necessary for the name of your business entity for company incorporation in the Kingdom of Saudi Arabia to be formally reserved at the Unified Centre. Company registration in KSA requires the approval of a company name before the Articles of Association, a deed of establishment, and company incorporation forms are submitted to the Ministry of Commerce and Investment (MOCI). Saudi company formation requires much attentiveness to detail and is made effortless with a company registration lawyer.
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SAGIA Foreign Business Investment License
Recent developments have witnessed the Saudi Arabian General Investment Authority (SAGIA) transform into the Ministry of Investment of Saudi Arabia (MISA). Once a lawyer with experience navigating the Saudi Arabia business registry process gets all required documents successfully submitted, SAGIA/MISA will issue a foreign business investment license granting a 100% foreign-owned company setup in Saudi Arabia the authority to hire employees, issue invoices, and sign contracts.
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MERAS Registration
MERAS is the KSA government program used to accelerate the foreign company registration process in Saudi Arabia. The Saudi Business Centre manages the program, and a company can register in its local municipality. Business registration lawyers can do this if your business has a physical address. Once finished, you can submit the registration to MOCI. Under MERAS, companies can register with the Ministry of Labour and Social Development, the General Organization for Social Insurance, and the General Authority of Zakat & Tax and notarize the Articles of Association online.
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Creating Company Seal
Setting up a business in Saudi Arabia requires a company seal. It can be achieved with the help of company registration solicitors in Saudi Arabia. It will be necessary for contractual agreements, Government documents, official letters, notices, and shareholder and management resolutions.
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Registration at the Chamber of Commerce
It is a requirement in the Kingdom that all entities pursuing business registration in Saudi Arabia obtain a certificate of membership from the Chamber of Commerce and Industries (CCI) for submission. You must do this inside 30 days of receiving the certificate of Registration from MOCI.
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Bank Account Opening
Setting up business in Saudi Arabia requires opening a local bank account within 90 days of issuing the commercial license. Upon opening the account with the help of a company registration lawyer, you must deposit the required share capital.
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Post Saudi Arabia Incorporation Process and Staying Compliant
Once the pre-incorporation and incorporation parts of the business set-up are finalized by a company registration solicitor in Saudi Arabia, there are only a couple of simple stages left to complete the company formation. Saudi Arabia requires all foreign nationals to hold a Saudi employment visa. It allows a foreign company owner to work and act as the company’s signatory for the corporate bank account. The second thing required upon completion of all Saudi Arabia company register procedures is converting the simple bank account into a corporate bank account.
Accounting and Tax Rules for Foreign Company Registration in Saudi Arabia
For many reasons, investors decide upon the Kingdom of Saudi Arabia for their business setup. Companies in Saudi Arabia get favorable tax tares over other nations. For instance, there is no income tax payable by individuals or employees in KSA.
In Saudi company formation, where ownership is shared between non-Saudi and Saudi interests, the quantity of taxable earnings attributed to a foreign interest is liable for Corporate tax. The portion of attributed taxable income for the Saudi share gets assessed on the Zaket (Islamic wealth tax) basis.
Setting Up a Business in Saudi Arabia Has Never Been Easier with the Business Registration Lawyers at SB Lawyers LLC
Setting up companies in Saudi Arabia has become more prominent in recent years. It provides investors with many tremendous benefits. With a booming free market economy, attractive tax incentives, and a safe and friendly environment to conduct business and live, getting on the Saudi commercial register offers an entire world of new and exciting opportunities. With the help of SB Lawyers & Consultants, company registration solicitors in Saudi Arabia, Saudi Arabia company formation is easy!
Dont Delay, Speak to Our Company Registration Lawyers in Riyadh for the Best Solution for Business Setup in Saudi Arabia
Have you been contemplating a Saudi Arabian company formation? Saudi Arabia is a fantastic destination for foreign investors to build a flourishing business in a rapidly growing economy. So, if setting up a business in Saudi Arabia is a serious consideration, contact an SB Lawyers & Consultants company registration attorney in Riyadh and learn how we can help your dreams become a reality.
