Incorporating a Company in Saudi Arabia

amin6294
Jul 22, 2024
2 min read

Incorporating a company in Saudi Arabia typically involves the following steps:

Choose a legal structure for your business. There are four options commonly used by foreign investors which include a Limited Liability Company (LLC), Joint Stock Company (JSC), One-Person Limited Liability Company, or a Foreign Branch Office.
Apply for an investment license from the Ministry of Investment (MISA). This involves applying through their online portal along with any required documents. Once approved, the applicant will need to pay the associated fees and reserve a name for the business.
Obtain a commercial registration certificate (CR). This certificate is issued by the Ministry of Commerce and is required in order to conduct business in Saudi Arabia.
Obtain any necessary licenses and permits. Depending on the nature of your business, you may need to obtain special licenses or permits in order to operate legally in Saudi Arabia.
Secure a business premise, register the national address, and open a bank account. The company will need to apply for a membership with the Chamber of Commerce.
Register for taxes. Businesses in Saudi Arabia are required to pay corporate income tax, value-added tax (VAT), and other taxes. You will need to register with the Zakat, Tax and Customs Authority (ZATCA) for these taxes and file tax returns on a regular basis.
Register with the Ministry of Labor and Social Development (MLSD) and the General Organizations for Social Insurance (GOSI).

The process for incorporating a business in Saudi Arabia can be complex and may vary depending on the type of business you are starting and the legal structure you have chosen. There are several procedures, steps and requirements that need adequate planning for establishing and operating a company in Saudi Arabia. Foreign companies are advised to be flexible and agile, to remain responsive to regulatory changes such as taxation, intellectual property rights, labor law, Saudization, etc.

At Rashidi Consulting, we support our clients with a full range of service to incorporate a business in Saudi Arabia. Our approach is designed to increase your familiarity with the Saudi regulatory and business landscape and maximize your long term success. We provide the legal, financial and tax expertise to ensure a seamless incorporation process.