By Innovation SA on December 19, 2023 in Business Setup Services
Saudi Arabia, located in the Middle East, is today one of the most developing hubs for businesses and investors. The country presents fertile ground for several industries when it comes to strategic location, progressive policies, and rich resources. Well, considering this, the government of the UAE (Saudi Arabia) took some crucial steps to grow a business-friendly environment, which results in increased investment opportunities. Whether you are a large-scale enterprise or a small startup, the kingdom is open to entrepreneurs and innovators.
So, if you are also in the mood of setting up a business in Saudi Arabia, then you must read this blog. If you still need help regarding how to set up a business from scratch, from registration to licensing, Innovation SA is here to assist you throughout the process. We provide the best and most effective business setup services to our clients.
Successfully Setting Up Business With Innovation SA!
Choose the right business structure.
This is the 1st step in opening a business in Saudi Arabia. Innovation SA first understands your business goals, situations, and needs to suggest the appropriate business structure for your company. We also suggest a corporate structure and paid-up share capital.
If you are an international-level business, a limited liability company is recommended. Foreigners can easily register for an LLC with only one shareholder.
We mean, no matter what you decide or which business structure you are tending towards, we will always get your back!
Obtain an investment license.
Next, you have to obtain an investment license for your business. This is mandatory for foreign investors who don’t belong to Gulf Cooperation Council nations. It is a must for commercial activities.
Innovation SA helps you create a detailed report for the license application, which will highlight information like the size and nature of the investment activities and important financial information about the company’s operations. After that, SAGIA application forms are filled out and submitted to SAGIA (Saudi Arabian General Investment Authority).
Once the application is processed, you get a pre-approval certificate. This certificate confirms that the company is registered and has 100% foreign ownership.
Book a company name.
In the third step, you have the option to choose the name of the business. Business is yours, so must be the decision. But, we work with you at every step.
Innovation SA then proceeded to reserve the name with the Unified Centre, and it was to be approved before submitting any form. This is how the journey for opening a business in Saudi Arabia continues.
Preparing documents
Innovation SA steps in to assist you with document preparation. The documents required incorporation, like the business plan, personal information of shareholders and directors, the article of incorporation, and the company constitution,
The prepared documents are later submitted to the Ministry of Commerce and Investment. Once the document gets approved, it is sent for signature in front of the notary public. Later than that, the name and articles of the association of businesses are sent to be published in the newspaper.
Register with MERAS
The next step again requires the help of a professional to keep you out of trouble! When you partner with us, we will help you register with MERAS, the international investment company, under the Saudi business center. Your business is then given a tax number and commercial registration number (CR). Commercial registration means an operating licensee (certificate of registration).
Next, the complete registration application is submitted to MOCI (the Arabian Ministry of Commerce and Industry). The commercial registration will then be provided six weeks after submission.
Submission of SAGIA foreign business license
Streamlining the submission of essential documents, we take charge of the SAGIA foreign business license application process on behalf of our clients. Following are the documents that should be submitted: municipality license, tax registration, bank’s share capital deposit letter, and CR (commercial registration).
After that, SAGIA issued the foreign business investment license. Your company is then called to sign the contract, hire employees, and issue invoices.
Making a company seal
This is a phase where your company seal is designed and created. The company’s seal includes your company name and CR.
Registration at the Chamber of Commerce
Once the company’s seal is designed, Innovative SA registers your company with the Chamber of Commerce. Applicants have to submit the Certificate of Membership (received from the Chamber of Commerce and Industry) within 30 days of incorporation.
Requirement of bank account
Now it’s time to open a bank account. We help you open a bank account at your chosen bank. There will be a corporate bank account. Once you get the certificate of registration, you can activate your bank account and release your initial capital deposit.
Companies located in Saudi Arabia have to open a capital account to deposit the paid-up share capital. This account is transferred into an operating business account upon the issuance of a CR number. You may also get a certificate of share capital deposit.
Time for amendment
Bank account opened? Great! Our team then proceeds with your business. Ensure that your business is fully compliant with the local requirements for tax filing as well as accounting. Finally, We prepare your corporate tax return, bookkeeping, and financial statements on your behalf. Meanwhile, you can focus on the time and resources that are necessary to operate your business.
Want to successfully do business in Saudi Arabia?
Good idea!
Business registration in Saudi Arabia is a complicated process with numerous steps. Along with some advantages, doing business in this kingdom also brings a number of challenges, which include high corporate income taxes, paid-up share capital for foreign businesses, and government registrations on foreign investment in specific industries.
However, with a business setup company like Innovation SA and its team of experts, you are guided through each step of the business setup. Everything is completed swiftly and smoothly so that you can run business in the jurisdiction as early as possible.
Call us to learn about the company registration process in Saudi Arabia. Our team will reach you as soon as possible.
Wrapping Up
Starting a business in a country like Saudi Arabia is a promising and exciting thing to do. Running a business here comes with a flourishing investment landscape and well-planned legalities. The process includes adherence to guidelines and detailed planning, like adhering to legal requirements, understanding corporate rules, choosing the industry, and getting intellectual property rights.
Saudi Arabia provides a conducive environment for entrepreneurs and investors. The support from various governmental bodies and the ministry of commerce, blended with banking facilities and accounting standards, makes the process more reachable. This comprehensive piece of content, or blog, provides a roadmap for business owners, highlighting the importance of each step on. By following these steps or taking the help of a reliable business setup company, investors or businessmen can easily venture into Saudi Arabia’s promising market, boosting the nation’s growth.