Kingdom of Saudi Arabia (KSA)
With its rich natural resources, growing infrastructure, and ambitious economic transformation plan, Saudi Arabia presents a wealth of opportunities for businesses across a range of sectors, including energy, manufacturing, and services. The country’s well-developed logistics network make it an ideal gateway to the wider Middle East, Africa, and Asia markets.
How to set up the Saudi Arabian company if the legislation requires a local partner and a minimum capital of 500,000 Riyals?
① Single founder company
② A branch of a foreign company
② A branch of a foreign company
There is a common misconception that a large authorized capital is vital to set up a company in Saudi Arabia, but in fact, the laws of KSA do not impose any minimum requirement on the share capital.
Foreign investors can form a company with 100% foreign ownership through a single founder company or a branch of a foreign company. However, the establishment of a subsidiary company requires proof of the financial solvency of the parent company.
Foreign investors can form a company with 100% foreign ownership through a single founder company or a branch of a foreign company. However, the establishment of a subsidiary company requires proof of the financial solvency of the parent company.
Both single-founder companies and branches offer foreign investors unrestricted access to the Saudi market without any mandatory share capital requirements.
If your business plan involves supplying goods to Saudi Arabia for eventual sale, consider setting up an operating company in Bahrain to simplify customs procedures in KSA. This approach can optimize your trade and logistics operations, ensuring seamless transactions for your business.
Our legal experts can guide you through the process of establishing your company and ensure that you comply with all legal requirements.
If your business plan involves supplying goods to Saudi Arabia for eventual sale, consider setting up an operating company in Bahrain to simplify customs procedures in KSA. This approach can optimize your trade and logistics operations, ensuring seamless transactions for your business.
Our legal experts can guide you through the process of establishing your company and ensure that you comply with all legal requirements.
Here are some general steps that are typically involved in setting up a single-founder company in Saudi Arabia:
1
Choose a business activity
Determine the type of business activity you want to engage in and make sure it complies with Saudi laws and regulations.
2
Choose a company name
Choose a name for your company that meets the requirements of the Saudi Arabian General Investment Authority (SAGIA).
3
Prepare the Articles of Association (AoA)
We draft and prepare the AoA for your company, which outlines the structure, capital, and management of the company.
4
Obtain approval from the Ministry of Commerce and Investment (MOCI)
We submit the AoA to the MOCI for approval.
5
Notarize the AoA
After obtaining the MOCI's approval, the AoA must be notarized by a notary public in KSA. Your personal visit is not required, we can do it via POA.
6
Obtain a commercial registration certificate
We apply for a commercial registration certificate from the MOCI, which enables your company to conduct business activities legally.
7
Obtain a municipal license
We apply for a municipal license from the municipality in your company's location to operate your business.
8
Open a bank account
We provide assistance with bank account opening with the local banks such as National Commercial Bank (NCB), the Saudi British Bank (SABB), or the Al Rajhi Bank.
9
Register with the General Authority for Zakat and Tax (GAZT)
We register your company with the General Authority for Zakat and Tax (GAZT) for tax purposes.
10
Plan your visit to KSA
At this stage we will finalize all the necessary procedures.
Thrilled to establish a company in KSA?
Shall we discuss the details? Do you prefer emails or swift messages?
Why is KSA attractive for business?
Saudi Arabia is a land of opportunities with a fast-growing economy. The government of Saudi Arabia has been working tirelessly to create a business-friendly environment, with a focus on attracting foreign investment and promoting economic diversification. The country has implemented a number of reforms aimed at simplifying procedures, reducing bureaucratic hurdles, and providing incentives for businesses such as Vision 2030. This strategic plan aims to diversify the economy, reduce dependence on oil revenues, and encourage private sector participation in various sectors of the economy.
Saudi Arabia is also rich in natural resources, particularly oil and gas, which have traditionally been the main drivers of its economy. However, the government has recognized the need to diversify the economy and reduce its dependence on oil, and has launched a number of initiatives to encourage investment in non-oil sectors such as manufacturing, technology, and tourism.
Finally, Saudi Arabia is home to some of the largest and most successful companies in the world, particularly in the oil and gas sector. This provides a unique opportunity for businesses to partner with these companies and leverage their expertise and resources.
Saudi Arabia is also rich in natural resources, particularly oil and gas, which have traditionally been the main drivers of its economy. However, the government has recognized the need to diversify the economy and reduce its dependence on oil, and has launched a number of initiatives to encourage investment in non-oil sectors such as manufacturing, technology, and tourism.
Finally, Saudi Arabia is home to some of the largest and most successful companies in the world, particularly in the oil and gas sector. This provides a unique opportunity for businesses to partner with these companies and leverage their expertise and resources.
Documents required to establish a company in KSA
The documents required to form a company in Saudi Arabia may vary depending on the founder and planned business activities. Here is a list of common documents required to set up a company in the KSA.
Required Documents for Individual shareholder:
- Valid Passport / ID copies of all shareholders and directors are required for registration.
- A power of attorney (POA) to be executed outside Saudi Arabia and attested by the Saudi Embassy in the country where the POA was executed.
- Bank reference letter: A bank reference letter is required to confirm the financial standing of the business owner and shareholders.
- Bank statement for the past 6 months: required for all shareholders.
Required Documents for Corporate shareholder:
- Commercial registration certificate of the parent company.
- Certificate of incorporation of the parent company.
- Board resolution of the parent company to open a branch in Saudi Arabia, specifying the name and address of the branch and the person authorized to sign on behalf of the branch.
- Power of attorney from the parent company authorizing the authorized signatory to act on behalf of the branch.
- Memorandum of Association and Articles of Association of the parent company.
- Audited financial statements of the parent company for the past two years.
- Letter from the bank of the parent company confirming its solvency.
- Lease agreement or proof of ownership of the office space where the branch will be located.
- Copy of the passport of the authorized signatory and a Saudi national as the branch manager.
- Copy of the national ID (for Saudis) or Iqama (for non-Saudis) of the Saudi branch manager.
Ready to take the first step towards your company in Saudi Arabia? Just fill out the application form
How companies are taxed in Saudi Arabia?
- 20%Corporate tax rate in Saudi Arabia
- 5%Withholding tax on dividends
- 15%VAT on sales within the territory of KSA
What we do
We assist in setting up companies in Saudi Arabia, from initial planning and legal requirements to registration and licensing. We help you choose the most appropriate legal structure for your business and guide you through the process of registering your company with the relevant authorities in KSA.
Our services provide extensive assistance in opening a bank account in Saudi Arabia, covering everything from form completion to application submission and connecting clients with a bank officer for a smooth and hassle-free account opening experience.
Our team of experienced lawyers provide legal consultation services to ensure that your company is in compliance with Saudi Arabian laws and regulations. We offer tax and accounting services to help you navigate the KSA tax system and comply with reporting requirements.
Explore other options in GCC region
Start business in the UAE the world most popular GCC country
Launch business in the Kingdom of Bahrain and take advantage of zero taxation
Set up a company in the Kingdom of Saudi Arabia and tap into the Middle East market