Financial consulting in the Kingdom of Saudi Arabia is one of the most important elements of strengthening the economy and achieving the financial goals of companies and individuals alike, especially after the remarkable growth in the field of investments on Saudi territory, as financial consulting is the strategic tool through which success is achieved

The meaning and importance of financial advice

Financial consulting in Saudi Arabia is the provision of financial advice in accordance with Saudi regulations, commensurate with the company’s situation and objectives, whether this consultation is before or after the establishment of the company, and financial consulting in Saudi Arabia is of great importance to companies:

• Assisting companies in developing thoughtful financial plans in line with the company’s goals and projects.
• Providing advice on how companies should manage their finances based on analyzing their financial situation and growth projections.
• Enhancing the financial stability of companies by minimizing financial risks and developing mitigation strategies.
• Avoid liquidity crises by managing the company’s cash flow.
• Develop risk mitigation strategies by managing the company’s risks to identify and assess them.
• Helping the company to invest in multiple fields in light of the increasing investment opportunities in the Kingdom of Saudi Arabia, through accurate analysis of its financial statements in order to achieve the maximum possible return and minimize risks.
• Compliance with the financial regulations in the Kingdom of Saudi Arabia, and ensuring that they are not violated and exposed to the penalties imposed for violating them, through financial consulting in Saudi Arabia, these regulations are interpreted and clarified to ensure compliance with them and achieve maximum benefit from them.
• Identify the company’s resources needed to achieve its financial goals.
• Strategic financial planning by creating long-term financial plans.
• Saving the company’s time and resources through the use of specialists in the field of financial consulting in Saudi Arabia can provide effective and quick solutions that save the company’s time and resources.
• Financial consulting in Saudi Arabia is very necessary to balance the company’s debts and investments, which reflects positively on the companies reaching and achieving their financial goals.
• The Kingdom of Saudi Arabia seeks to develop the private sector, and therefore the role of financial consulting in Saudi Arabia contributes significantly to the development of companies in line with the Kingdom’s Vision 2030.
• Competition in the Saudi market is fierce, so consulting specialists is a necessity to stay ahead of the competition.

Types of financial consulting in Saudi Arabia for companies

There are many types of financial consulting in Saudi Arabia that are provided to companies, which contribute significantly to helping companies reach their financial goals, whether these companies are startups or not, and among the most important types of financial consulting in Saudi Arabia for companies:

• Consulting on corporate financial goals, budgeting, investment strategies, and retirement planning.
• Comprehensive financial planning through the development of operating, financing, and investment budgets, and the development of business plans to achieve financial goals once they have been set.
• Assist in strategic financial decision-making, financial planning, budgeting, and cash flow management.
• Financial consulting related to analyzing financial statements and predicting the company’s future performance.
• Manage the company’s financial obligations by developing a plan to reduce debt, reschedule debt and improve credit in order to achieve financial stability.
• One of the most popular financial consultancies in Saudi Arabia is consulting related to the valuation of companies and their assets.
• Tax planning consulting by identifying opportunities for savings in compliance with tax regulations, thereby optimizing tax planning and success.
• Advice on how to manage cash flow and short-term investments.
• Stock, bond, and real estate consulting.
• Assist in selecting the best financing from different banks or financial institutions.
• Maintaining the company’s accounting books, to ensure the accuracy and integrity of its financial records.

Financial Consulting in Saudi Arabia and Company Formation

A company is a legal entity established in accordance with the Companies LawTo build a specific project in which two or more people commit to providing a share of money or doing work or both, with the aim of sharing the profits and losses resulting from this project, and the company can be established with only one person or the goal of its establishment is non-profit, and financial consultancy in Saudi Arabia has a major role in establishing companies because of its extensive experience in financial systems and their executive regulations, so the company is established on sound legal financial foundations, which avoids many issues later.

According to the Saudi Companies Law, the types of companies in Saudi Arabia are the solidarity company, the simple recommendation company, the joint stock company, the simplified joint stock company and the limited liability company, and one of the most important reasons for the use of these companies when establishing them is the specialists in the field of financial consulting in the Kingdom of Saudi Arabia:

• Ensure the company’s compliance with financial regulations.
• Prepare the company’s financial statements.
• Identify the best financing options for the company.

Here’s how to set up these companies.

Solidarity Company

It is a company established by two or more persons (natural or legal) who acquire the status of a merchant, and are personally and jointly liable for the debts and obligations resulting from the company’s activities:

• Partners’ names and details.
• Company name, purpose, and headquarters.
• The company’s capital, the amount of each person’s share and when the shares are due.
• The company’s management and the quorum required for its issuance.
• Partner decisions.
• The start and end date of the company’s fiscal year.
• Termination of the company.

Simple Recommendation Company

A simple partnership is made up of two teams of partners:

• The first team: A team that includes one partner (natural or legal), who is personally and jointly liable for the company’s obligations and debts resulting from its activity.
• The second team: The team that includes at least one partner (natural or legal) is called the testamentary partner, who does not bear any responsibility for the company’s debts or obligations except to the extent of his share of its capital, knowing that this testamentary partner does not acquire the status of a merchant.

The company’s articles of incorporation must contain the following:

• Partners’ names and details.
• Company name and headquarters.
• The purpose of the company.
• The company’s capital, a statement of each partner’s share and when these shares are due.
• Management of the company.
• Company decisions.
• Quorum of the company.
• How profits and losses are distributed to the partners.
• The start and end date of the company’s fiscal year.
• Termination of the company

Joint Stock Company

The shareholding company is a company that is established by one or more persons, whether natural or legal, and the capital of this company is divided into tradable shares, and the company is fully responsible for its debts and obligations, while the shareholder’s liability is limited to the performance of the value of the shares he has subscribed to.

Company Articles of Incorporation

The Articles of Association of a joint stock company must include the following information:

• Company name, purpose, duration, and headquarters.
• The company’s paid-up capital.
• The number of company shares, types, classes, par value and rights of each type and class.
• The company’s management and the number of board members.
• The start and end date of the company’s fiscal year.
• The names, addresses, and nationalities of the founders of the shareholding company.
• A statement of the company’s expected business and expenses for incorporation, and it is preferable to use one of the companies specialized in the field of financial consultancy in Saudi Arabia for companies, to assist the founders of the company in this item.
• The founders’ declaration of subscribing to all the shares issued to the company, and the value of the shares paid.
• A certificate of deposit with a licensed bank in the Kingdom of Saudi Arabia for the amount paid of the issued capital.
• A resolution appointing the members of the first board of directors from the company’s founders, provided that this resolution includes the names of the members, their nationalities, addresses, and dates of birth.
• Appointing the first auditor in cases where the appointment is required in accordance with the provisions of the Companies Law.
• The founders of the company declare that they have complied with all the requirements of the Companies Law regarding the establishment of the company.
• Prepare a report from one or more certified appraisers, indicating the fair value of the in-kind shares, if any, and a declaration from the company’s founders approving the specified consideration.

Procedures for establishing a joint stock company

Availability Ministry of Trade through the Saudi Business Center For this service, the following conditions must be met:

• The beneficiary of the service must be at least 18 years old, and if the beneficiary is under the age of puberty, a guardianship deed must be presented.
• Partners must not be employed in government jobs.
• If one of the partners is a legal person, their commercial register must not be expunged, suspended or terminated.
• The issued capital must be SAR 500 thousand and above, and the paid-up capital must not be less than one-fourth of it.

The following documents are required:

• A legal document if one of the partners is a government entity, civil institution, endowment or charitable organization, in order to have the right to establish or participate in the company.
• A license from the Saudi Central Bank if the activity of the shareholding company requires such a license.

Steps to get the service

The service of establishing a joint stock company is obtained through the Saudi Business Center platform through the following steps:

• Log in to the platform and select the service of establishing a joint stock company.
• Click on Start Service and then select Company Founders.
• Determine the company’s status and then apply for the service.
• Enter the duration of the record.
  the seat of the company
  its activities and purposes.
• Enter the following data: Company Founders – Commercial Register – Company – Company Management – Articles of Association.
• Summary of the order.

Simplified Joint Stock Company

The provisions of the shareholding company apply to the simplified shareholding company unless otherwise specified, and a simplified shareholding company can be established through the Saudi Business Center by following the following steps:

• Log in to the Saudi Business Center platform, then select the service of establishing a simplified joint stock company and then click on Start Service.
• Select the company founders and description and then click on Apply for Service.
• Enter the duration of the record.
  the seat of the company
  its activities and purposes.
• Enter the data of the company’s founders, commercial register, company, company management and articles of association.
• Finally, enter the order summary.

Conditions for obtaining the service and the necessary documents

In order to obtain the service of establishing a simplified joint stock company on the Saudi Business Center, the following is required:

• The applicant must be at least 18 years old, and if less than that, a guardianship deed must be presented.
• The partners of the firm do not have a government job.
• If the partners are a legal person, their commercial register must not be expunged, suspended, or terminated.

If one of the partners is a government entity, a civil institution, a charitable association or an endowment, in order to have the right to establish or participate in the company, and a license from the Saudi Central Bank is required if the company’s activity requires it, in order to establish a simplified shareholding company.

When establishing a simplified joint stock company, it is preferable to consult one of the companies specialized in providing financial consultations in Saudi Arabia for companies, as they play an essential role in the success of commercial projects.

Limited Liability Company

A limited liability company is a company established by one or more persons, whether this person enjoys natural or legal personality, and the company’s liability is independent of the financial liability of its owner or partners, and the company bears sole responsibility for the debts and obligations incurred by it or resulting from its activity, and the owner and his partners are responsible for these debts and obligations to the extent of their share in the capital only and not otherwise.

Articles of Incorporation

The LLC’s Memorandum of Association must contain the following information:

• Company name, headquarters, and purpose.
• Partners’ names and details.
• The company’s capital and how it is distributed among the partners.
• Partners acknowledge the fulfillment of the value of their shares.
• The duration and management of the company.
• Waiver of quotas.
• The medium for communicating communications to partners.
• Company decisions.
• The method of distributing profits and losses among the partners, and it is preferable to use specialists in the field of financial consultancy in the Kingdom of Saudi Arabia in writing this clause of the contract.
• The start and end date of the company’s fiscal year.
• Termination of the company.

The Memorandum of Association must be attached to the LLC’s Articles of Association when submitting the application for incorporation:

• The founders declare their commitment to abide by all the requirements of the law related to the establishment of the company.
• A statement prepared by one or more certified appraisers indicating the value of the fair value of the in-kind shares, if any, and a declaration by the remaining founders of the company agreeing to the specified consideration.

Forming a Limited Liability Company

The Ministry of Commerce provides through the Saudi Business Center platform the service of establishing a limited liability company, through which the following is done:

• Issuing the company’s commercial register, memorandum of association, and immediate commercial license.
• Open an establishment file at the Ministry of Human Resources and Social Development.
• Zakat registration via the Zakat, Tax and Customs Authority portal.
• Register the company with the General Organization for Social Insurance.
• Register with the chambers of commerce and the national address with Saudi Post.

Conditions for obtaining the service and the necessary documents

In order to obtain the service of establishing a limited liability company through the Saudi Business Center platform, the following is required:

• The beneficiary must be at least 18 years old, and if less than that age, a guardianship deed must be presented.
• Partners should not work in government jobs.
• If one of the partners is a legal entity, its commercial registration must not be expunged, suspended or terminated.
• If the company’s status is professional, make sure the partners’ professional licenses are valid.
• If the company is mixed, the percentage of the Saudi licensed partner must not be less than 25%.
• The percentage of licensed partners should not be less than 70%.

A legal document is required if one of the partners is a government entity, civil institution, endowment or charitable association in order to be able to establish or participate in the company, and a license from the Saudi Central Bank is required if the company’s activity requires such a license.

Steps to get the service

To obtain the service of establishing a limited liability company through the Saudi Business Center platform, the following must be followed:

• Log in to the platform, then select the service of establishing a limited liability company and click on Start.
• Specify the number of partners and the company’s status and then apply for the service.
• Enter the duration of the record.
  the seat of the company
  its activities and purposes.
• Enter the following data: Members, Commercial Register, Company, Company Management and Company Contract.
• Summary of the order.

In conclusion, financial consulting in Saudi Arabia is a key pillar for the success of companies in Saudi Arabia, as consultants play an essential role in helping companies reach their financial goals and achieve sustainable growth, and this is what distinguishes Invest Global’s consultants as they have extensive experience in providing financial consulting tailored to meet your specific needs and goals.