Saudi Arabia is an attractive destination for many foreign investors. Numerous business opportunities and political stability increase the chance of business success. If you wish to expand your business to Saudi Arabia to avail yourself of the benefits of business opportunities, contact us at Enterslice. We provide quick and hassle-free business setup services. We provide legal advisory services to ensure the expansion complies with all relevant legal requirements. We support registering and obtaining necessary licenses for the new business operations. We guide you in choosing the appropriate legal structure for the business. We also do financial planning and budgeting for the expansion and provide tax advisory services to optimise tax implications and ensure compliance.
Company Incorporation in Saudi Arabia
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The Kingdom of Saudi Arabia has its own set of regulations and procedures for company formation. The different types of business structures available in Saudi Arabia are Limited Liability Companies, Joint Stock Companies, and branches of foreign companies. We assist in choosing names that do not conflict with the existing trademarks or company names. We draft and notarise the MOA and AOA. These necessary papers outline the company structure, objectives and rules. Foreign companies need a local agent who is a Saudi national or a Saudi-owned company. Consent from the Saudi Arabian General Investment Authority (SAGIA) is required for foreign investors. We apply for Commercial Registration at the Ministry of Commerce and Investment. Let us start the journey of your company's incorporation in Saudi Arabia with support and determination. Let us help you create purpose for your business with a sustainable business model. Let us create a healthy space within your company to let innovation breathe and give Enterslice a chance to make a humane-friendly business space. Enterslice, with its innovative approach, could bring diversity to your business by aiding experiments and intrapreneurship culture within your organisation. A minimum of two shareholders and one director is required for company incorporation in Saudi Arabia. For Private Companies- 2,000,000 SAR. For General Partnership – 500 SAR. For Partnerships Limited by stakes- minimum 2 million SAR Provide the registered office address. However, physical presence is not required to set up a company in Saudi Arabia. Appoint a resident company secretary. Before proceeding to the registration process, it is necessary to analyse the unique business goals, needs and situations to identify the appropriate business structure for your company. Enterslice will advise you on the most optimum business structure, paid-up share capital and corporate structure. The subsequent step is to apply for the Investment License for your corporation, which is necessary for non-GCC foreign investors and only applies to carrying out commercial activities other than those set out in the “Negative List”. An application must be submitted to the SAGIA, a government body accountable for providing licenses for 100% foreign-owned companies to function in the country. SAGIA will issue a pre-approval certificate which that authorises the company to be registered as well as its ability to have 100% foreign possession. You will have to choose a preferred company name for your business. Enterslice will then reserve it with the Unified Centre and await approval before any other forms can be submitted. The forms include incorporation forms, articles of association and deed of establishment. Draft and notarise the MOA, AOA, Business Plan, Company Constitution and Personal information of directors and shareholders. These necessary papers outline the company’s structure, objectives and rules. Foreign companies need a local agent who is a resident of Saudi Arabia. Application for a Commercial Registration (CR) at the Ministry of Commerce and Investment (MCI). You must submit the required necessary papers, including the SAGIA approval, MOA and AOA. Register for VAT with the General Authority of Zakat and Tax (GAZT) if applicable. To bring the company into operation, opening a corporate bank account in the company's name is necessary. Once the Certificate of Registration is issued, you can activate your bank account and unfreeze your initial capital deposits. Depending on the nature of the business, additional licenses may be required from relevant authorities. Prepare employment contracts in compliance with Saudi Arabian labour laws. Enterslice puts great emphasis on client focus. We prioritise the needs and complaints of our clients when offering any business service. Enterslice is particular about time management as it is vital on the road to personal success and even more critical in the management of any business. We attend to all client’s needs to surpass the agreed timelines. Enterslice has a unique quality of adapting to different levels of management and business environments. We believe that the synchrony created by business services catapult an organisation to great success. Different types of taxes in Saudi Arabia are Corporate Income Tax, Value-Added Tax, Social Insurance Tax and Real Estate Transaction Tax. Saudi Arabia imposes a flat corporate income tax rate of 20% on the taxable income of residents and non-resident companies. It introduced VAT on January 1, 2018. The standard rate is 15%. Businesses meeting specific criteria must register for VAT and comply with related reporting and payment obligations. Zakat is a form of almsgiving in Islam, and in Saudi Arabia, it is levied on the wealth and income of Saudi and GCC nationals. For companies, Zakat is typically calculated at 2.5% of the company’s net revenue. In addition to national taxes, companies may be subject to municipal taxes and contributions to the General Organisation for Social Insurance (GOSI) for employee social insurance coverage. Withholding tax generally applies to certain non-residents' payments like dividends, interest, and royalties. Different Types of Business Structures in Saudi Arabia are: A limited liability company is the most common type of business structure. It mandates having at least one director and shareholder who may be a natural person or another corporation. If the number of shareholders at any given time becomes more than 20, then they must appoint a Board of Directors. The companies can, however, engage only in the activities described under the approved objectives of the business. Foreign investors willing to set up large-scale operations can choose the joint stock company. This form of company can be owned wholly by one or more natural persons or companies who may be foreigners. A Joint Stock Company must appoint an auditor and file audited financial statements yearly. LLC is suitable for foreign entrepreneurs who are unfamiliar with the business market. This entity requires a minimum of two members and at least one director and doesn’t have any minimum capital requirement to register the business. Foreign Companies can open branch offices in Saudi Arabia after obtaining the necessary approval from the concerned authority in Saudi Arabia. A branch office may engage in commercial activities, but they should be within the scope of authorisation issued by the authority. The business can promote and solicit business in Saudi Arabia. A Representative Office can also be established in Saudi Arabia. The parent company controls it and functions on behalf of the parent company. The specific necessary papers required for company incorporation in Saudi Arabia are as follows: i) Completed Investment License Application Form ii) Notarised copy of Company’s Board resolution enclosing the partner’s names, percentage of each partner’s capital iii) Contribution, activity and general manager appointment iv) Attestation of the details by the KSA Embassy in the foreign investor’s country iv) Audited Financial Statements of the past three years v) Certificate of Incorporation of the company attested by the KSA Embassy in the foreign investor’s country vi) Copies of the Articles of Association of the company attested by the KSA Embassy in the foreign investor’s country vii) Approval from the concerned Ministry of KSA for doing business activity in KSA. Saudi Arabia has been actively creating a more favourable business environment, implementing various economic and social reforms to attract foreign investment and stimulate domestic business growth. Saudi Arabia’s Vision 2030 is a comprehensive plan to reduce the country’s dependence on oil, diversify the economy, and foster a dynamic business environment. It includes initiatives to enhance infrastructure, education, healthcare and technology. The Saudi government has undertaken efforts to improve the ease of business in the country. Reforms include streamlining administrative processes, reducing bureaucracy and implementing digital services. When dealing with professional services, having a professional and reliable team is essential for a smooth and successful experience, whether for company incorporation, compliance or other business-related services. Enterslice has a profound experience and knowledge of local rules and regulations in company incorporation, compliance, and business consulting. Enterslice has a strong connection with Saudi authorities, which is a valuable asset for businesses in Saudi Arabia. The connection facilitates smoother interactions, enhances regulatory compliance and contributes to positive relationships with relevant government agencies. The Saudi Government’s Vision 2030 aims to diversify the economy by reducing dependence on oil. This creates opportunities for business across various sectors, including technology, entertainment, tourism and renewable energy. Vision 2030 is a long-term strategic framework that outlines the goals and initiatives for economic and social development in Saudi Arabia. It includes specific objectives to increase the contribution of non-oil sectors to the GDP and create a more vibrant and diverse economy. The Saudi government provides support and incentives to attract foreign direct investment. It includes investment incentives, subsidies and other assistance for eligible projects. SAGIA is the primary government agency responsible for promoting investment in the Kingdom. It facilitates the establishment of businesses and provides information about investment opportunities, regulations and incentives. The government may allocate land at preferential rates or offer incentives to companies to access suitable locations for their operations. Saudi Arabia offers certain tax benefits to businesses to encourage investment, economic development and diversification. The tax regime in Saudi Arabia includes Corporate Income Tax (CIT) and other taxes and other specific provisions that may provide benefits to eligible businesses. Even though Corporate Income Tax exists in Saudi Arabia, it is relatively low compared to many other jurisdictions. Additionally, specific industries and projects may qualify for tax exemptions or reduced rates as part of government initiatives. The legal and regulatory environment in Saudi Arabia can be complex and subject to change. Navigating various regulations, obtaining necessary permits and ensuring compliance with local laws may pose challenges. Dealing with bureaucratic processes and administrative procedures can be time-consuming. Businesses may encounter delays in obtaining approvals and facing challenges related to paperwork and Paper works. In specific business structures like limited liability companies and foreign companies, there is a requirement to have a local sponsor. While local sponsorship is common practice, finding a suitable local partner can be challenging. Specific industries may have restrictions on foreign ownership or may require particular approvals. For instance, sectors such as real estate and media have limitations on foreign investment. Enterslice advises clients in choosing the most suitable legal structure for their businesses, considering liability, ownership and operational requirements. Enterslice assists in preparing and drafting legal necessary papers required for company incorporation, including MOA, AOA and other relevant necessary papers. Enterslice assists in preparing and submitting necessary necessary papers for the company's registration with relevant authorities such as SAGIA and MCI. Enterslice assists in obtaining the necessary business licenses and permits required for specific industries or activities. We have 10+ years of experience in company incorporation in Saudi Arabia and other legal compliances. We are a global network of legal consultants, and our journey is full of success stories that we have achieved through these years by making hassle-free company incorporation in Saudi Arabia. We provide quality service, which results in client satisfaction. We streamline your company incorporation process, making it easier for our clients to understand. At Enterslice, we are committed to providing our clients with top-notch services, ensuring that their business needs are met with precision and accuracy. Our team of dedicated professionals go above and beyond to deliver exceptional results. Your satisfaction is our priority. We strive to exceed your expectations by listening to your needs, addressing your concerns and providing personalised solutions. We value your trust and work tirelessly to ensure your complete satisfaction. We believe in constantly evolving and improving our services to stay ahead of the curve. Our team is dedicated to staying up-to-date with industry trends and best practices to provide innovative solutions that drive success. Ensuring safety and security in doing business is essential for the success and sustainability of any enterprise. Saudi Arabia has maintained a relatively stable political environment. However, businesses should stay informed about political developments and potential stability risks. Adhering to local laws and regulations is essential for the safety and security of a company. Staying compliant with legal requirements minimises the risk of legal issues affecting operations adversely. Registering trademarks, patents and copyrights in Saudi Arabia ensures legal protection against infringement. While Saudi Arabia offers a generally secure business environment, businesses should conduct thorough risk assessments, stay informed about local conditions, and prioritise safety and security measures to ensure long-term success and resilience. Saudi Arabia's economy has historically relied on oil and gas revenues. However, the country has been actively pursuing economic diversification initiatives to reduce dependence on oil and create a more diverse and sustainable economy. It is actively diversifying its economy by investing in technology, tourism, entertainment, mining, renewable energy and manufacturing sectors. The goal is to create a more balanced and resilient economy.An Overview of Company Incorporation in Saudi Arabia
With Enterslice, Embrace Your Company Incorporation in Saudi Arabia
Start With Purpose and Mindset
Co-Create the New Culture
Think outside the Box
Eligibility Criteria for Company Incorporation in Saudi Arabia
No. of Shareholders and Directors
Share Capital Requirements
Registered Office Address
Resident Company Secretary
Procedure to incorporate a company in Saudi Arabia
1.Choose a suitable business structure
2. Application for Investment License
3. Reserve Company Name
4. Preparation of necessary papers required for incorporation
5. Appoint a Local Agent
6. Obtain a Commercial Registration (CR)
7. Obtain a Value Added Tax (VAT) Number
8. Open a Bank Account
9. Obtain other licenses and permits
10. Employment Contracts
Qualities you will find in the Services provided by Enterslice
Client Focus
Timeliness
Adaptability
Tax Structures of Companies Incorporated in Saudi Arabia
Different Kinds of Business Structures in Saudi Arabia
1. Limited Liability Company
2. Joint Stock Company
3. Limited Partnership Company
4. Branch Office
5. Representative Office
necessary papers Required for Company Incorporation in Saudi Arabia
Favourable Business Environment
Benefits of working with Enterslice that you can’t miss
Highly Professional and Reliable Team
Deep Knowledge and understanding of local rules and regulations
Strong Connection with Saudi Arabian Authorities
Benefits of Company Registration in Saudi Arabia
Economic Diversification
Government Support and Incentives
Tax Benefits
Challenges of Incorporating a Company in Saudi Arabia
Legal and Regulatory Complexity
Bureaucratic Processes
Local Sponsorship Requirements
Limited Access to Certain Industries
Company Incorporation Services provided by Enterslice
Company Structure Selection
Legal necessary paperation Drafting
Registration with Authorities
Obtaining Licenses and Permits
Our Success Story
Our Commitment to Excellence
Quality Service
Client Satisfaction
Continuous Improvement
Safety and Security in Doing Business
Frequently Ask Questions
Standard of Living in Saudi Arabia
The Standard of living in the country has improved, driven by factors such as economic diversification, infrastructure development and social reforms. This has attracted businesses to be set up in Saudi Arabia. Saudi Arabia has invested in economic diversification in its Vision 2030 initiative. Efforts to reduce dependence on oil, promote non-oil sectors and attract foreign investment contribute to the overall economic growth. The Housing sector has developed various projects to provide affordable housing options for residents. The Saudi government has also initiated programs to address housing needs and improve living standards.
Broad Economy
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“I have registered my Trademark through them. The application was filed within 3 days. And the charges were also very reasonable. We got TM Approved in 6 month’s time without any re-submission or objection. They charge high to deliver the best in industry.”
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Haiden Group - UAE
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