How to Open a Branch Office in Saudi Arabia?

The prosperous and business-friendly environment of Saudi Arabia offers various opportunities for investors to tap into its dynamic and growing markets. A foreign investor can choose between setting up a restricted risk organisation or a business entity. However, for this decision, there are numerous elements that have to be considered, such as the proposed number of investors, the administrative structure, and the proposed exercises/assignments of the organisation. 

What is a Branch Office?

• A branch office is an extension of a parent company and performs the same business activities as the parent company. 
• A branch company can’t perform any trading activities, but it can promote business for the parent company. 
• You can own 100% of the foreign branch company in Saudi Arabia without a local partner. 

What are the Characteristics of a Branch Office Formation in Saudi Arabia

• The minimum share capital for setting up a branch company in Saudi Arabia is 500,000 SAR.
• The parent company will be responsible for the debts and other obligations of a branch office set in Saudi Arabia. 
• The paid-up capital must be deposited to the Saudi corporate banks. 
• The parent company must have been in existence for at least 3+ years and have proof of existence.  

What are the Required Documents for Setting Up a Branch Company in Saudi Arabia?

Here is the list of documents that you will need to register a branch office in Saudi Arabia:

• Bank reference letter
• Passport copies of the shareholders and directors
• ID proof and address proof for directors and shareholders
• Memorandum of Association (MOA) and Articles of Association (AOA)

What are the Available Business Activities for a Branch Company in Saudi Arabia?

• Services
• Industrial
• Trading 

How to Register a Branch Company in Saudi Arabia?

You have to go through the following process for a branch office in Saudi Arabia:

1. Appoint a Service Agent:

The first step is to contact a service provider like Business Setup Worldwide. We will take care of all your business requirements. Starting with license approval from the Ministry of Commerce and Investment and continuing through the company renewal process, we will be there to assist you.

2. Finalize a Trade Name

In the next step, choose at least three names for your company. The authority might reject one name; therefore, keeping three names would be feasible. Make sure you comply with the regulations when choosing the trade name for your branch company in Saudi Arabia.

3. Determine the Business Activity with the Industry

Select the industry where you want to start your business and finalize the business activity. Saudi Arabia offers a variety of business industries that you can explore. Choose anyone according to your preference. 

4. Obtain the  Business License

In the last step, you must apply for a license with the Saudi Arabia General Investment Authority (SAGIA). Foreigners need an investment license to start a business in Saudi Arabia. 

BSW| Your Business Service Provider

All businesses require licenses for company formation in Saudi Arabia. Professional business consultants can assist you in the process of opening a branch company in Saudi Arabia. Get help from the best business setup consultants in Dubai, Business Setup Worldwide. Understand the legal legislation and requirements to register a branch office in Saudi Arabia. Contact us to get started and enjoy the benefits.