Steps to successfully establish a company in the Kingdom of Saudi Arabia for foreigners  is one of the most searched topics for foreign investors wishing to establish companies in the Kingdom or wishing to open branches of their companies in Saudi Arabia.
This is due to the facilities and support provided by the Kingdom to foreign investors.
whether in terms of permits, licenses.
logistical and tax support.
residency and visa facilities.
Financial support and government investments.
We will dedicate this article to every investor who wants to know the steps of establishing a company in Saudi Arabia for foreigners to help them start their investment activity inside the Kingdom.

How to set up a company in Saudi Arabia for foreigners

The Kingdom of Saudi Arabia issues investment licenses to both local and foreign investors equally and without distinction.
Both have the same obligations and enjoy the same rights.

The Kingdom allows foreign investors to issue licenses to establish a limited liability company.
Single Person Limited Liability Company.
joint stock company.
a branch of a foreign company and a professional partnership company.
We will explain in detail below the steps to set up a company in Saudi Arabia for foreigners.

1. Investment License

The first step in establishing a company in Saudi Arabia for foreigners is the issuance of an investment license.
The Ministry of Investment is the body responsible for issuing licenses in Saudi Arabia.
The investor can issue the license after preparing the following documents:
The commercial register of the company to be established and the financial statements for its last fiscal year.
Provided that the commercial register and financial statements have been certified by the Saudi Embassy.

There are several types of investment licenses granted by the Kingdom of Saudi Arabia to foreign investors wishing to establish companies in the Kingdom.
The types of investment licenses are:

• Agricultural license: This is the license that is issued to companies working in the field of agriculture.
• Business license: This type of license is issued to companies engaged in wholesale and retail trade.
• Audiovisual Media License: This is a license granted to companies that operate in the field of audiovisual media.
• Consulting License for Engineering Offices: This license is issued to companies working in the field of providing engineering consulting services within the Kingdom of Saudi Arabia.
• Scientific and Technical Office License: This is a license issued to any company that wishes to open an office specialized in providing scientific and technical services to agents, distributors and consumers of the company’s products.
• Recruitment and Temporary Employment Agencies License: This is a license granted to companies that provide recruitment services and temporary employment agencies for domestic workers.
• Printing and Publishing Activities License: This license is issued to companies operating in the field of printing and publishing in the Kingdom.

Other types of investment licenses in Saudi Arabia

• Professional license in partnership with a Saudi investor: This is a license for companies that wish to practice professional activities in Saudi Arabia in partnership with a Saudi investor.
• Transport license: This license is issued to companies that provide public transportation services by buses and metro trains in Saudi cities.
  and any other public transportation activities within the Kingdom.
• Mining license: This license is issued to companies wishing to work in the field of mining within the Kingdom.
• Real estate license: This is a license that is issued to companies that want to work in the real estate industry.
• Service license: This license is for the provision of the following services:
  Contracting.
  Administrative investment, tourism
  health care.
  insurance and reinsurance.
  Information Technology, Training, Education
  logistics, logistics.
  Advertising & Media, Aviation
  organization of exhibitions
  catering and nutrition and finally financial services.
• Industrial license: It is a special license for establishing companies operating in the field of heavy, light, and manufacturing industries.
  light and manufacturing industries.
• Advisory license for technical and economic liaison offices: It is issued to economic and technical offices from countries that wish to obtain this license.
• Entrepreneurial license: It is a license issued to those wishing to establish future viable technology and innovation startups within the Kingdom of Saudi Arabia.

2- Signing the company’s articles of incorporation

The second step in establishing a company in Saudi Arabia for foreigners is to sign a company incorporation contract.
The ministries responsible for signing this contract are the Ministry of Justice and the Ministry of Commerce and Industry.

It is worth noting that in the case of opening a branch of a company in Saudi Arabia.
it is sufficient for the issuance of the commercial register to submit a decision to open this branch from the rest of the company’s branches.
without the need to sign a new articles of association.

3- Issuing the company’s commercial register

The third step in establishing a company in Saudi Arabia for foreigners is the issuance of the company’s commercial register.
The Ministry of Commerce and Industry is responsible for issuing it.
In order for the commercial register to be issued, the following documents must be available:

• The commercial register of the parent company.
• The decision to open a branch of the company in the Kingdom of Saudi Arabia.
• In the case of a new company, a notarized articles of incorporation are required.
• The decision to appoint the Director General.
• Proof of identity of the general manager and staff.

4- Opening company files

The fourth step of establishing a company in Saudi Arabia for foreigners is to open files for the company.
The authorities responsible for opening files within it are:

• General Authority for Zakat and Income.
• Ministry of Human Resources and Social Development (Ministry of Labor).
• The General Organization for Social Insurance.

5. Obtaining a General Manager’s Visa

The fifth step in establishing a company in Saudi Arabia for foreigners is obtaining a general manager’s visa.
This visa is obtained through the Ministry of Human Resources and Social Development.
This visa is obtained through the Ministry of Human Resources and Social Development.

 

Steps to establish a company in Saudi Arabia for foreigners through the Saudi Business Center platform

The Ministry of Commerce, through the Saudi Business Center platform, provides a company formation service.
The following is an explanation of how to establish a limited liability company.
A joint stock company and a solidarity company through the platform.

1- Establishing a Limited Liability Company

The Ministry of Commerce has provided the service of establishing a limited liability company through its official website.
It is a service that allows the investor to start his business activity by establishing his company.
It is a company established by one person or more than one person.
Whether this person is a natural or legal person, and one of the most prominent characteristics of this company:

• Independence of the company’s financial statement from the financial statement of its owner or his partners.
• The company is fully responsible for debts or obligations resulting from its establishment or activity.
• The owner or partner’s liability for the company’s debts or obligations shall be to the extent of their share in the capital only.

Services associated with company formation

Through the LLC formation service, the following is done:

• Issuing the company’s commercial register and the memorandum of association are two of the first steps in establishing a company in Saudi Arabia for foreigners.
• The possibility of issuing an immediate business license according to the desire of the investor and the service provider.
• Open an establishment file at the Ministry of Human Resources and Social Development.
• Register the company in Zakat via the Zakat, Tax and Customs Authority’s online portal.
• Register the company with the General Organization for Social Insurance.
• The LLC is registered at the national postal address of Saudi Arabia.
• Register the company with the Chamber of Commerce according to its location.

In order to benefit from this service, a legal document is required if one of the partners is a government entity, a
A civil institution.
endowment or charitable organization in order for this partner to be able to establish or participate in the company.
A license from the Saudi Central Bank is also required if the company’s activity requires it.

Terms of service for setting up a limited liability company

• The beneficiary must be eighteen years of age or older.
  If the beneficiary is a minor under the age of eighteen.
  a guardianship deed is required.
• None of the partners are employed in government jobs.
• One of the most important steps in establishing a company in Saudi Arabia for foreigners if one of the partners is a legal person.
  The commercial register should not be expunged, suspended or terminated.
• If the company has a professional status, the following must be verified
  Partners must hold valid professional licenses – If the company is a mixed company, the percentage of licensed Saudi partners must not be less than 25% – The percentage of licensed partners must not be less than 70%.

Steps to establish a company in Saudi Arabia for foreigners through the Saudi Business Center

• Log in to the Saudi Business Center platform.
• Select the “Form a Limited Liability Company” service.
• Click on “Start Service”.
• The number of partners in the company must be specified.
• It is optional to specify the company’s status.
• Apply for the service.
• Enter the duration of the record.
  the seat of the company
  its activities and purposes.
• Enter company member data.
• In this step of setting up a company in Saudi Arabia for foreigners, the commercial register data is entered.
• The beneficiary must enter the company’s management information.
• Enter the company’s contract data.
• And finally, the summary of the request.

The service can be accessed directly by clicking on “Start Service” on the “Forming a Limited Liability Company” on the Saudi Ministry of Commerce website.

2- Establishing a joint stock company in Kingdom of Saudi Arabia

The Saudi Ministry of Commerce assists the investor in starting his business activity through the “Establishing a Joint Stock Company” service on the Ministry’s website.
This service enables him to practice his commercial activity and establish his company.
Shareholding companies are characterized by the following characteristics:

• It can be established by one or more persons.
  whether that person is a natural or legal person.
• The company’s capital is divided into shares that can be traded.
• The company is solely responsible for any debts or liabilities incurred as a result of its incorporation or activity.
• Shareholders’ liability for the company’s debts or obligations is limited only to the value of the shares they have subscribed to.

Services associated with obtaining a joint stock company incorporation service

Obtaining a joint stock company incorporation service entails the following:

• Issuing the company’s commercial register and memorandum of association.
• The possibility of issuing an immediate business license according to the desire of the investor and the service provider.
• Open an establishment file at the Ministry of Human Resources and Social Development.
• Register the company in Zakat via the Zakat, Tax and Customs Authority’s online portal.
• Register the company with the General Organization for Social Insurance.
• The shareholding company is registered at the national address of Saudi Post.
• Registering the company in the Chamber of Commerce according to its location is the last step in setting up a company in Saudi Arabia for foreigners.

Documents needed to obtain the service

In order for an investor to benefit from this service, the following documents are required
The following documents are required:

• A legal document if the partner is a government entity.
  a civil institution
  An endowment or a charitable organization.
  In order for this partner to be able to establish or participate in the company.
• A license issued by the Saudi Central Bank if the activity of the shareholding company requires such a license.

Terms of incorporation through the Saudi Business Center

One of the requirements for establishing a joint stock company in Saudi Arabia through the Saudi Business Center:

• The investor applying for the service must be eighteen years of age or older.
  If his age is less than that, he is considered a minor and requires the presentation of a guardianship deed to obtain the service.
• Partners must not be employed in any government positions.
• If one of the partners is a legal person, the commercial register must not be expunged.
  suspended or terminated.
• The company’s issued capital must be SAR 500,000 and above.
  The company’s paid-up capital must not be less than a quarter of that amount.

Steps to obtain a joint stock company incorporation service

The service can be obtained by following the steps below:

• The investor or beneficiary must enter the Saudi Business Center platform and then select the “Establishing a Joint Stock Company” service.
• Click on “Start Service” and then select Company Founders.
• The company’s attribute is then selected.
  which is optional.
• Apply for the service and then enter the duration of the record.
  The shareholding company’s headquarters.
  its activities and purposes.
• Enter the company’s founders’ details.
  Then enter the commercial register data.
• Enter the company’s data, followed by the company’s management data and finally the articles of association.
• The last step in setting up a company in Saudi Arabia for foreigners on the Ministry of Commerce website is the application summary.

The service can be directly utilized by clicking on “Start Service” located on the “Establishing a joint stock company” on the Ministry of Commerce website.

3- Establishing a solidarity company

The investor can establish his solidarity company and start practicing his business activity through the “Establishing a Solidarity Company” service through the Saudi Business Center.
It is a company that can be established by two or more people.
whether they are natural or legal persons.
They are personally liable for any debts or obligations of the company.
The partner in the company has the status of a merchant.
Through the service of establishing a solidarity company, the following is done:

• Issuing the company’s commercial register and memorandum of association.
• The possibility of issuing an immediate business license according to the desire of the investor and the service provider.
• Open an establishment file at the Ministry of Human Resources and Social Development.
• Register the company in Zakat via the Zakat, Tax and Customs Authority’s online portal.
• Register the company with the General Organization for Social Insurance.
• The solidarity company is registered at the national postal address Sobel.
• Register the company with the Chamber of Commerce according to its location.

Documents needed to obtain the service

In order to obtain the service of establishing a solidarity company on the Ministry of Commerce website, the following documents are required:

• The statutory deed if one of the partners is a government entity.
  civil institution
  Endowment or charitable organization.
  In order for this partner to have the right to establish or participate in the solidarity company.
• A license from the Saudi Central Bank if the company’s activity requires such a license.

Terms of Service

One of the most important steps in establishing a company in Saudi Arabia for foreigners is to adhere to the conditions for establishing this company.
The conditions of the solidarity company that must be adhered to are:

• The beneficiary must be eighteen years of age or older.
  If the beneficiary is a minor, i.e. under the age of eighteen.
  a guardianship deed must be presented.
• Partners must not be employed in government jobs.
• If one of the partners is a legal entity.
  you need to make sure that their business registration is not expunged, suspended, or terminated.
  suspended or terminated.
• If the status of the solidarity company is professional, it must be ensured that there are valid professional licenses for each partner in the company.
  The percentage of licensed Saudi partners must be 25% or more if the company is mixed.
  The percentage of licensed partners must be 70% or more.

Steps to get the service

To obtain the “Establishing a Solidarity Company” service through the Saudi Business Center.
the following steps must be followed:

• Log in to the Saudi Business Center portal, then select the “Establishing a Solidarity Company” service and click on Start Service.
• The applicant must specify the number of partners and specify the status of the company if desired and then apply for the service.
• Enter the duration of the record.
  the seat of the company
  its activities and purposes.
  Then enter the partners’ details.
• Enter commercial register data.
  Company and management data.
• Fill out the company contract and then the application summary.

It can be accessed directly on the “Establishing a solidarity company” page and click on “Start Service” to utilize the service.

 

Thus, we have covered in detail the steps to establish a company in Saudi Arabia for foreigners, and how to establish a company through the Saudi Business Center platform.
And how to establish companies through the Saudi Business Center platform.
If you want to establish a company in the Kingdom of Saudi Arabia, you can use Invest Global, which provides you with a variety of services related to establishing companies in the Kingdom.