Company registration in Saudi Arabia can take a few days to several weeks. This might look similar to other countries, but in Saudi Arabia, it is much easier with the help of experts like Commitbiz.
The country is gradually becoming an ideal location for a company formation in Saudi Arabia.
Company Registration in Saudi Arabia - Facts
Before company registration, you should be aware of the facts mentioned below. Let's start with the types of entities;
IMPORTANT FACTS
VAT
5%
Corporate Tax
20%
Time Frame for Registration
Around 2 months
Minimum Number of Directors
1
Number of Shareholders Required
Minimum 1
Minimum Share Capital
SAR 100,000
Resident Director Required
No
Full Foreign Ownership
Yes
Tax Incentives
If you open a company in the regions of Ha’il, Jazan, Najran, Al-Baha, Al-Jouf, and the Northern Territory, you will benefit from the tax concessions.
Exemption of customs duty is also applicable for raw materials and machinery that cannot be found in Saudi Arabia.
Why Does Starting a Business in Saudi Arabia Benefit an Investor?
Below listed are the reasons why starting a business in Saudi Arabia can benefit an investor;
As per the World Bank’s 2002 report, Saudi Arabia has ranked 62nd in terms of business-friendly environment.
It is one of the top 10 global business improvers.
Company formation in Saudi Arabia will take almost 11 days.
An investor just has to invest 5.4% of per capita income.
How to do Business Registration in Saudi Arabia?
Setting up a business in Saudi Arabia has a few steps to be adhered to by both local and foreign investors and entrepreneurs; they are
Select a Trade Name
Trade name selection should be done under the following conditions: avoid using repetitive names, avoid using offensive names, and avoid religious names.
Identity proof of the business shareholders and investors
Address proof of the business investors and shareholders
Well-drafted blueprint of the business
Passport and visa of the business investors and shareholders
Selected business name
Register the company’s trading name with the Ministry of Commerce and Industry
End Note
Business Setup Worldwide has been one of the top-performing business consultants in the UAE who has helped business professionals carry out their business ideas across the globe.
Since incorporation, we have assisted some business investors and entrepreneurs, guiding them on the perfect way to channel the incorporation process.
For more information, feel free to speak with our business expert. Contact us now- we'd be glad to assist!
FAQs
Can a subsidiary company take the form of a limited liability company?
Yes
Who issues the investment license in Saudi Arabia?
Saudi Arabian General Investment Authority (SAGIA) issues the investment license.
How long does it take to do a company registration in Saudi Arabia?
2 months
Can a foreigner start a company in Saudi Arabia?
Yes, foreigners can apply to set up a business in Saudi Arabia and have 100% ownership.