Saudi Arabia is a popular business destination that offers flexible corporate laws for conducting business in the jurisdiction. It has a strong economy as it has the world's largest oil reserves. Although oil and petroleum are the major contributors to the kingdom's economy, various other emerging sectors provide significant business opportunities.
The government of Saudi Arabia is continually encouraging privatization as a part of its strategy to diversify the kingdom's economy. Starting a business in Saudi Arabia can thus be an ideal choice for investors and business owners from across the globe. The process of company registration in Saudi Arabia is quite straightforward and involves minimum documentation requirements. The following sections highlight the procedure and benefits of company formation in Saudi Arabia.
The Saudi Arabia company registration is simple and requires minimal efforts with the help of professional business setup services. Setting up a company involves the following steps:
The first for registering a business is to select a company name. It is important to note that the trade name should be unique and must comply with the naming regulations as specified by the governing authorities. Also, the type of legal entity and purpose of business should be declared.
The Saudi Arabia General Investment Authority (SAGIA) is the governing body that regulates foreign investment in the kingdom. Once the company name is chosen, the next step would be to apply for an investing license at SAGIA.
The documentation process involves furnishing the below documents:
After the above document preparation process, the documents can then be submitted for approval at the Unified Center (UC). Also, it is necessary to legalize and notarize the documents with the help of a licensed notary. A notary public would review and approve the documents to make sure that they meet the standard requirements. After the approval, the company requires publication in the Official Gazette.
Opening a bank account is mandatory where the initial capital necessary for the company will be deposited. There are a variety of banking options available for business owners. After the opening of the bank account, company shareholders can transfer their share and obtain a certificate from the bank for the capital deposited.
The next step is to establish an office as it is compulsory for the completion of the registration process in the Commercial Registry. Once an office space is selected, the final step for registration involves obtaining a commercial registration license. The Ministry of Commerce and Industry issues the license after which companies can engage in various trade activities.
After the company registration process, companies need to register for taxes. The taxation system in Saudi Arabia consists of two major component - Income tax and Zakat. Income tax applies to non-residents personals engaging in business activities in the kingdom. Zakat is a religious wealth tax that is assessed on taxable incomes and assets.
The Department of Zakat and Income Tax (DZIT) regulates the tax system in Saudi Arabia and is responsible for the collection of income tax and Zakat. The following are the documents required to register for taxes:
Starting a business in Saudi Arabia is a suitable choice for investors and business owners looking to expand their companies in a growing economy. The following are some of the benefits of company registration in Saudi Arabia:
By availing professional services, you enjoy a hassle-free Saudi Arabia company registration process. There are numerous benefits that you'll get when you avail professional services, some of which are mentioned below:
Here at Business Setup Worldwide, we help our client with the entire business registration process. Our services are specially catered according to the requirements of the businesses activities. You can also be assured compliance with the local laws and regulations to avoid any legal complications. To know more about our company formation services, contact us today, and we'd be happy to help!