Saudi Arabia's government is strategically planning to attract foreign investors by offering them unprecedented opportunities for growth. Depending on the selected activity, an investor can achieve 100% ownership of their company in Saudi Arabia under the foreign investment legal framework. It is, however, necessary to have a certain Saudi ownership percentage in specific activities. There are many options for market entry available to investors to set up in the Kingdom as it may suit each investor's needs accordingly.
The most common forms of entities formed by foreign investors wishing to do business in Saudi Arabia:
Commercial Agencies: Foreign companies are not required to have a legal presence in Saudi Arabia when goods are sold directly to end-users in the Kingdom. Commercial agencies are standard for a foreign business to arrange for its products to enter the Saudi market. Commercial agents can only be Saudi nationals or Saudi companies owned and operated by Saudi nationals. Commercial agents must guarantee the quality of the products and provide necessary maintenance and spare parts.
Consultation and planning: During this process, due diligence is done on the best business type, paid-up capital, activities, additional approvals from the local authorities, and license requirement.
Draft Legal documents such as Article of Association, Board Partner resolution, Power of Attorney followed with Obtain the investment license from MISA Certificate or Registration from MOCI and Register a company with Chamber of Commerce.
Register with The Ministry of Labor, GOSI, GAZT, bank account, and other portal registrations required for a fully functional office.
Due to the fast pace of today's business, directors' time is increasingly being devoted to core business activities, and administrative work is therefore becoming less significant. However, all directors' decisions must be recorded appropriately, along with executing these in a timely manner. The Registrar of Companies is becoming more vigilant about meeting deadlines. In extreme cases, directors can face criminal prosecution if they do not meet these deadlines. Fines can also be imposed against directors for persistently not meeting these deadlines.
Our services provide a one-stop solution for most business requirements to facilitate growth. The scope of Saudi Arabia's corporate secretarial services is outlined in the following sections.
If you plan to incorporate your organizational setup in Saudi Arabia and need strategic thinking and legal compliance assistance, Proven is here to support you as local expertise with a global approach.
Advantage of choosing our service
We provide business support solutions that enable our clients to access GCC markets, grow their business, and succeed in finding efficiencies exporting their business cost-effectively.
With a decade of expertise in the business and trusted by clients worldwide, our solutions are bespoke, professional, and tailored for each business and guide you through a new company incorporation hassle-free. Find more incorporation of company information here.