Corporate financial services in the Kingdom of Saudi Arabia are the key to the financial success of commercial projects, through these services, companies are able to make the right financial decisions, improve their financial performance in addition to overcoming the difficulties and challenges they face, and we will dedicate this article to talk about these services and their importance because of their effective role in increasing investments and strengthening the economy

What are corporate financial services in Saudi Arabia?

Corporate Financial Services in Saudi Arabia is a professional service to guide companies in managing their financial affairs, and this service takes many forms such as investment consulting, retirement planning, tax planning, estate planning, risk management and the like.

Through financial services, companies can make the best decisions about their financial resources, as well as strategize to achieve the company’s financial goals.

The importance of corporate financial services in Saudi Arabia

The use of specialists in the field of providing financial services is an urgent necessity that should not be dispensed with, as it has a great role in achieving financial stability for companies and achieving their future financial goals, in addition to the following reasons:

• Enables financial service providers to engage in strategic financial planning by developing long-term financial plans that align with the company’s goals and identifying the resources needed to achieve them.
• Avoid liquidity crises by managing the company’s cash flow.
• Helping the company make the best investment decisions through accurate analysis of its financial statements.
• Risk management helps the company to identify and assess risks and develop strategies to minimize them.
• Balancing the company’s debts and investments, as specialists in providing financial services to companies in Saudi Arabia are characterized by achieving a balance between debt and investment, which achieves the company’s financial goals in the fastest time.
• Providing support for mergers and acquisitions.
• Overcoming the company’s financial crises through restructuring.

The most important financial services for businesses in Saudi Arabia

There are many financial services that are provided to companies within the Kingdom, the most prominent of which are:

• A personalized financial counseling service that discusses a company’s financial goals, budgeting, investment strategies, and retirement planning.
• A comprehensive financial planning service through which operating, investment, and financing budgets are developed, financial goals are set, and work plans are developed to achieve them.
• Business financial advisory services that include financial planning, budgeting, cash flow management, and strategic financial decision-making.
• A service that analyzes financial data and predicts future performance.
• Debt management is a service that reduces debt by developing a comprehensive debt management plan, improving credit and restoring financial stability.
• Company and asset valuation service.
• Tax planning services that identify savings opportunities and ensure compliance with tax regulations, ensuring successful tax planning and optimization.

• Liquidity management service for cash and short-term investments.
• Providing investment advisory services for stocks, bonds, and real estate.
• Assistance in obtaining financing from banks and various financial institutions, and this service is one of the most important financial services for companies in the Kingdom of Saudi Arabia.

Saudi Commission for Auditors and Accountants

Saudi Commission for Auditors and Accountants It is a professional body that supervises the accounting and auditing profession in the Kingdom of Saudi Arabia and achieves the following objectives:

• Improving and developing the accounting profession in the Kingdom.
• Monitoring the quality of the performance of workers in the profession to qualify them and develop their performance.
• Developing and increasing awareness of the rules and behaviors of the accounting profession, in addition to enhancing its participation in serving the national economy and society.
• Developing and supporting business-related organizations and individuals.

All with the aim of increasing confidence and transparency in financial statements and protecting users and investors.

Licensing requirements for accounting services

The Saudi Commission for Auditors and Accountants stipulated the conditions for licensing accounting services in Article 5 of the rules governing accounting services, which differentiated between full-time license applicants and part-time license applicants.

1- Full-time license applicant

In order for a full-time licensee to obtain a license to practice accounting in the Kingdom of Saudi Arabia, the following is required:

• The applicant must be a Saudi national.
• The license applicant has full eligibility.
• Obtaining a university degree or any higher qualification in accounting, or one of the specializations of administrative sciences and its branches, and must have spent 21 hours in accounting or its branches, or what is considered equivalent by the Saudi Commission for Auditors and Accountants.
• Must pass the professional tests specified by the Saudi Commission for Auditors and Accountants.
• The license applicant must be registered in the professional membership of the Saudi Commission for Auditors and Accountants.
• The license applicant must have at least one year of experience in accounting work in one of the private accounting offices or companies, or in government agencies or joint stock companies.
• The applicant’s good conduct and behavior, not having been sentenced to a legal limit or a crime against honesty or honor (unless he has been rehabilitated), and not having been issued a disciplinary decision to dismiss him from a government service (unless three years have passed since the disciplinary decision was issued).

2- Part-time practitioner

A part-time person may be licensed to practice the accounting profession if the following conditions are met:

• The license applicant must be a Saudi national with full eligibility.
• A university degree or higher qualification in the field of accounting or any other specialization in administrative sciences or its branches, provided that the applicant completes 21 hours in accounting or its branches or what the Authority considers equivalent.
• Passing the professional tests set by the Authority.
• The applicant for a part-time license must be registered in the professional membership of the Authority, and must have at least one year of experience in accounting work in accounting offices or firms.
• Good conduct, not having been previously convicted of a legal limit or a crime against honesty or honor (unless he has been rehabilitated), and not having been issued a disciplinary decision to dismiss him from government service (unless three years have passed since this decision).
• He must not have practiced the profession on a part-time basis for more than three years.
• Not to provide accounting services to joint stock companies, banks, finance companies, public organizations and institutions.

It is clear from the above that the Saudi system is keen to ensure that providers of financial services to companies in the Kingdom of Saudi Arabia are qualified to provide these services, so it has set conditions and standards that must be adhered to in order to obtain a license to practice the accounting profession in the Kingdom of Saudi Arabia.

Obligations of an accounting licensee

According to the rules regulating accounting services, a licensee to practice the accounting profession in Saudi Arabia must adhere to the following:

• Adherence to the rules of the profession, its behavior and ethics, and the accounting standards issued by the Saudi Commission for Auditors and Accountants.
• Adhere to the duties stipulated in the approved laws, regulations and rules.
• The licensee shall retain the office’s working papers and copies of prepared reports for at least 10 years from the date of preparation.
• The licensee must perform the work and sign the reports himself; he may not deputize another person to sign
• The licensee’s commitment to the type and number of clients for whom it provides accounting services on an annual basis as determined by the Authority.
• He must take his personal name as the name of his headquarters, but he may take a creative name, provided it is in conjunction with his personal name.
• His name and license number must be mentioned in all reports, statements, documents and correspondence.
• Post the license issued by the Authority in a conspicuous place in his place of business.

Forms of Companies in Saudi Arabia

According to thecorporate system A company is a legal entity that is established in accordance with the provisions of this law, and based on the company’s articles of incorporation or articles of association, two or more persons commit to contribute a share of money or perform work or both with the aim of realizing profit in a project and sharing the resulting profit or loss, and a company may be established by the unilateral will of a single person, and a non-profit company may also be established, and the role of Corporate financial services in Saudi Arabia are very important when establishing a company in the Kingdom or managing its financial management, because these service organizations have a long experience and expertise in the field of companies.

According to Article 4 of the Companies Law, a company takes five forms:

• Solidarity Company.
• A simple recommendation company.
• Joint Stock Company.
• Simplified Joint Stock Company.
• Limited Liability Company.

Solidarity Company

It is a company established by two or more persons, whether natural or legal persons, who are personally and jointly responsible for the company’s debts and obligations, and the partner in this company acquires the status of a merchant, and the contract of establishment of the solidarity company must include the following data:

• Names and data of partners.
• The name of the solidarity company.
• The company’s headquarters.
• The purpose of the company.
• A statement of the company’s total capital and how it is distributed to the partners, indicating the amount of each partner’s share and when it is due.
• Company management and its duration, if any.
• The quorum required for the issuance of the company and partners’ decisions, and it is preferable to use specialists in the field of Corporate Financial Services in Saudi Arabia to determine the value of this quorum.
• The start and end date of the company’s fiscal year.
• Termination of the company.

Procedures for establishing a solidarity company

The Ministry of Commerce has provided on its website the service of establishing a solidarity company:

• Issuance of the Memorandum of Association, Commercial Register and Instant Commercial License (optional).
• Open an establishment file at the Ministry of Human Resources and Social Development.
• Register the company for Zakat through the Zakat, Tax and Customs Authority portal, in addition to registering it with the General Organization for Social Insurance (GOSI).
• Register the company in the national address of Saudi Post, and register it in the chambers of commerce by location.

The service of establishing a solidarity company is obtained by following the following steps:

• Login to the platform Saudi Business Center.
• Select “Establish a Solidarity Company” and click on Start Service.
• Specify the number of partners of the company, and then specify the status of each of them (optional).
• Apply for the service.
• Enter the duration of the register, headquarters, activities and purposes of the solidarity company.
• Enter the partners’ data, then enter the commercial register data.
• Company registration, management and articles of incorporation. And finally, the summary of the request.

Terms of Service

In order to obtain the service of establishing a partnership company through the Saudi Business Center platform, the following conditions must be met:

• The beneficiary of the service must be at least 18 years old, and if he is a minor, a guardianship deed must be presented.
• Partners must not be employed in any government positions.
• No deregistration, suspension or termination of the commercial register, if one of the partners of the company is a legal person.
• If the company’s status is professional, a valid professional license for the partners must be verified.
• The percentage of the licensed Saudi partner must not be less than 25% if the company is mixed.
• The percentage of licensed partners must be at least 70%.

The following documents are also required:

• If one of the partners of the company is a government entity, a civil institution, a charitable association or an endowment, in order for this partner to be able to establish or participate in the company.
• A license from the Saudi Central Bank if the company’s activity requires it.

In addition to all of the above, a company specialized in the field of corporate financial services in the Kingdom of Saudi Arabia to help the solidarity company to be established to achieve its financial goals by developing appropriate strategic financial planning.

Simple Recommendation Company

A simple recommendation company is a company consisting of two teams of partners, the first team includes at least one partner with natural or legal status and is personally and jointly liable for the company’s debts and obligations, while the second team includes at least one partner with natural or legal status (recommender partner), who is not liable for the company’s debts or obligations except to the extent of his share in the company’s capital, and this recommender partner does not acquire the status of a merchant, and the contract of establishment of a simple recommendation company must include the following data:

• Names and data of partners.
• Company name, purpose, and headquarters.
• The company’s capital, how it is distributed to its partners, and a statement of the partners’ shares and when they are due.
• Company management and duration (if applicable).
• Company resolutions and quorums.
• The method of distributing profits and losses among the partners, and this item is one of the most important items that must be used by a specialist in the field of corporate financial services in Saudi Arabia to divide profits and losses among the partners.
• The start and end date of the company’s fiscal year.
• Termination of the company.

The procedure for setting up a simple partnership company

The Ministry of Commerce has provided, through the Saudi Business Center platform, the service of establishing a simple recommendation company:

• Issuance of the Memorandum of Association, Company Commercial Register, and Instant Commercial License (optional).
• Open a file for a simple recommendation company at the Ministry of Human Resources and Social Development.
• Registering a simple partnership company in Zakat through the Zakat, Tax and Customs Authority’s online portal, in addition to registering it with the General Organization for Social Insurance (GOSI).
• Register the company in the chambers of commerce and in the national address of Saudi Post.

The service of setting up a simple recommendation company through the platform is obtained by following the following:

• Log in to the platform, select the Simple Recommendation Company Establishment service and click on Start.
• Specify the number of partners and the company’s status and then apply for the service.
• Specify the duration of the registry, the company’s headquarters, its activities and purposes.
• Enter the following data: Partners – Commercial Register – Company – Company Management – Company Contract.
• Finally, enter the order summary.

Terms of Service

In order to receive this service, the following is required:

• Applicants must be 18 years of age or older, or present a guardianship deed if they are under the age of puberty.
• The partner must not be a government employee, and if one of the partners is a legal entity, his commercial registration must not be expunged, suspended, or terminated.
• If the status of the company is professional, the validity of the professional license of the partners must be checked
• The percentage of the licensed Saudi partner must not be less than 25% if the company is mixed.
• The percentage of licensed partners must be at least 70%.

The following documents are also required:

• A legal document if one of the partners is a government entity, a civil institution, a charitable association or an endowment, so that this partner can participate in the company or its establishment.
• A license from the Central Bank if the company’s activity requires it.

In conclusion, corporate financial services in the Kingdom of Saudi Arabia have a key role in supporting business growth and achieving the financial goals of companies very effectively, and for more inquiries about corporate financial services in the Kingdom, you can contact Invest Global because of its more than fifteen years of experience in this field.