How to setup your business in Saudi Arabia?
Saudi Arabia was a place of challenge to setup your business until the year 2018 arrived. The year 2018 had brought about many changes to the rules & regulations of the country and this made it easier for people to set up their businesses. Some of the changes are here.
The time taken to process business licence in Saudi Arabia has been slashed by more than 92 percent to encourage further investments. Renewal of investment licenses can be done online through a self-service portal on the Saudi Arabian General Investment Authority (SAGIA) website.
The SAGIA has cut the processing time significantly. Businesses need to present only financial statements and certified commercial registration to the investment authority for licenses to be issued. Foreign investors can open sales, marketing and administration offices to complement industrial or non-industrial projects.
With so much alterations in its rules and regulations, Saudi Arabia could well be a place to open a business and is a great time too. Even if you’re a non-Saudi, you can own 100% of your company because of the ever-changing and ever-growing Saudi’s market. Here are the steps to setup your business in Saudi Arabia,
Investment License License (SAGIA License)
If you’re a new company in Saudi Arabia, you need to get the SAGIA Licence first. The Government entity that provides licenses for such foreign companies is the Saudi Arabian General Investment Authority, which lets you operate without a partner. With these basic procedures, you’ll be able to get your bank account and sponsor shareholders. This is probably enough to start doing your business legally in Saudi Arabia.
Signing Articles of Association
A new firm in the Saudi would definitely need a Commercial Registration or a CR. The CR is issued by the Saudi Ministry of Commerce & Industry which allows you to operate activities within Saudi Arabia. Certain activities still need licences and certificates from the Chamber of Commerce which is another mandatory document required along with the CR.
Setting up your office
The foreign owners of the business should definitely come to Saudi Arabia to finalize the process after the completion of the documents. As part of the company registration in Saudi Arabia, you will need to come in once for attestation at the Notary. Few other government registrations should also be completed to ensure the company formation in Saudi Arabia. Some of those include the Municipality license, Labor Office File, General Organisation For Social Insurance File (GOSI), and General Authority of Zakat and Tax File (GAZT).
Saudi Arabia is a great place to setup and operate your business. It is a very welcoming sign that many entrepreneurs are happy to explore new markets and set up their businesses here.