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How to Register a Company in Saudi Arabia (KSA)

Saudi Arabia has a lot to offer entrepreneurs looking to start their own businesses. The country has a growing economy, and low taxes and registration fees. But setting up a business can be stressful if you don’t know how to register a company in KSA or Saudi Arabia.

Challenges Foreign Companies Encounter When Registering Their Business in KSA

October 24, 2022

There are a number of obstacles to registering a business in Saudi Arabia, but none are insurmountable. Some of these challenges include the following:

It is quite costly to do business in Saudi Arabia. People who wish to establish a corporation that is wholly owned by a foreign firm are required to have a start-up budget of more than 100,000 SAR. This would exclusive the cost of acquiring a business license, paid up share capital requirement, furnished office space, and local employees.

The local municipalities, known as “Baladiya”, move at a snail's pace and are inefficient. It could take as long as three months to complete the office inspections and get a municipal license after applying for it.

The owner of a foreign company must remain in order to be eligible for an iqama. During this time, the owner of the foreign company must also notarize and authenticate a number of papers. In Saudi Arabia, the process of attestation might take up to one month to complete.

The local public notary, Ministry of Commerce officials, or bank relationship managers may reject your documents if they have not been translated into Arabic by a native Saudi legal translator.

Not all domestic financial institutions let you manage your foreign currency accounts online. Getting even a basic bank statement might be a hassle since the bank signatory has to physically go to the Saudi office.

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Get the Help of the Experts

Without the assistance of a professional, the whole process of forming a business in Saudi Arabia could be overwhelming. However, if one makes the prudent choice of teaming up with consultants or the experts, the procedure may be completed quickly and easily in a relatively short amount of time.

As a non-native investor, you probably won't have a good grasp on the required legal formalities. As a result, moving forward without the help of someone who is an expert in establishing and registering foreign businesses in Saudi Arabia can be detrimental.

Any savvy business investor knows that time is money, and one should work tirelessly to maximize every available minute. In light of this, the vast majority of investors would rather follow the advice of a seasoned financial advisor.

Get on the same page with your business consultant. In doing so, you will be better able to plan the next steps and carry them out as intended.

Procedures for Registering a Company in Saudi Arabia

  1. Learn the ins and outs of your company's operations.

  2. Team up with a consultant or expert to get the job done

  3. Explore the market.

  4. Finalize your company name and business structure 

  5. Submit your business documents which would include the following:

    • Duly filled application documents

    • Documentation establishing the identity of the company's investors and shareholders.

    • Information about the business's investors and shareholders

    • Well-crafted business plan

    • Investors' and stockholders' passports and visa information

    • Business name

  6. Obtain approvals and permits from the government.

  7. Secure the certificate of incorporation and pay the fees

  8. Learn the ins and outs of your company's many divisions.

  9. Find and hire the right people

  10. Get your business off the ground by opening a bank account.

  11. Start your business operations

There are many benefits to putting up a business in Saudi Arabia. For one thing, personal income tax for foreign investors is low at 5 to 20 percent, while corporate tax is at 15 percent. And although value added tax is in place in Saudi Arabia, many products and services fall under the zero-percentage exemption. At the moment, Saudi Arabia is welcoming foreign investors from all over the globe. 

The process of registering a business in Saudi Arabia can be a daunting task. If you are planning to register your business in Saudi Arabia, then get in touch with us and we will make sure that the process is as easy as possible for you.

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