Quality Company Setup Services in Saudi Arabia: Business investors from all over the world are preferring the Kingdom of Saudi Arabia for their new destination in expanding entities’ operation. In this article we have discussed why to choose Saudi for company setup, Saudi free economic zones, business sectors for FDI, profitable non-oil business sectors, documents required for company formation in Saudi Arabia, etc.
Why Choose Saudi Arabia for Your Company Setup
The Kingdom of Saudi Arabia is a Middle East country which is easily accessible to Asia, Europe, and Africa for businesses and export-import point of view. In addition to this advantage, the Saudi government launched the Vision 2030 in 2016 to enhance the FDI in KSA and encourage higher domestic and international private sector participation in the Kingdom’s economy. The key benefits of Vision 2030 to investors are as follows:
- It has considered tax benefits to businesses for the underdeveloped regions in KSA.
- It considers rights to buy a property and enables businesses to sponsor their own employees.
- It minimizes income tax, VAT, and exempted customs duty.
The other reasons why you choose the Kingdom for company setup services in Saudi Arabia is the political strength of the government in providing lower energy costs and complete ownership in the retail and wholesale business sectors through the privatization program.
Some of major improvements in providing company setup services in Saudi Arabia to attract foreign investments are as follows:
- A single window mechanism that simplifies and eases business setup services in KSA.
- Special care for protecting minority investors.
- Enforcing the contracts easily.
- Credits availability in easy way through the new insolvency law and secured transaction law.
- Online platform is available to enable construction permits.
- Liberalization in trading and investments across the border.
- Insolvency and financial restructuring of companies is resolved easily.
Free Economic Zones in Saudi Arabia
Intending to diversify, Saudi Arabia has set two free zones to attract foreign investors and increase the FDI in diverse types of businesses. For this the government has also made company setup services in Saudi Arabia easy.
Industrial Cities as Free Zones in KSA
The industrial cities as free zones in Saudi Arabia were established in the 1980s that have become an important economic centre for diverse nature of industries. Today, there are 30 industrial cities in the Kingdom that are built to promote industrial estates. MODON, the Saudi government body, established in 2001 that looks into the matters of the industrial cities. The Saudi industrial cities as free zones are:
- Riyadh as 1st. Industrial City: Downtown Riyadh on the western side of Riyadh Dry Port in Al-Malaz District.
- Riyadh as 2nd. Industrial City: On Al-Kharj Road south of Riyadh city.
- Riyadh as 3rd. Industrial City: South Riyadh.
- Jeddah as 1st. Industrial City: South of Jeddah Province, east of Al-Rahmaniyah Market.
- Jeddah as 2nd. Industrial City: West of the Coast Road south of Jeddah near the Red Sea.
- Saudi Rabigh Industrial City: It is South of Rabigh on the Jeddah-Rabigh Road, 7 km to the east of King Abdullah Economic City.
- Saudi Jeddah as 3rd. Industrial City: It is at the East of the Coast Road near the Red Sea, and 30 km away from Jeddah First Industrial City.
- Dammam as 1st. Industrial City: South-east of Dammam near the coast of the Arabian Gulf.
- Dammam as 2nd. Industrial City: West of Dhahran City on Dhahran-Abqaiq Road east of King Fahd Military City.
- Dammam as 3rd. Industrial City: South of Dhahran, 5 km south of Half Moon Bay.
- Saudi Sudair City for Industry and Businesses: 150 km away from Riyadh to the west of the Riyadh-Qassim Road extension.
- Qassim as 1st. Industrial City: South of Buraidah, east of King Abdulaziz Road.
- Qassim as 2nd. Industrial City: South-east of Buraidah city, 5 km before the intersection of the Eastern Ring Road with Riyadh-Qassim Highway.
- Al-Kharj Industrial City of KSA: Southwest of Al-Kharj Governorate with the road to Al-Kharj Industrial City.
- Saudi Ha’il Industrial City: West of Hail, 5 km east of the King Abdulaziz Road.
- Al-Ahsa as 1st. Industrial City: North of Al-Ihsaa city on Dhahran Road.
- Saudi Al-Madina Al-Munawwara Industrial City: South-west of Al-Madinah and south of the reception station for sea and air pilgrims.
- Saudi Makkah Al-Mukarrama Industrial City: North of Makkah Al-Mukarrama on Al-Madinah Road, opposite the Makkah College of Technology.
- Saudi Tabuk Industrial City: Northeast of Tabuk city, 120 km away from Halat Ammar Port.
- Saudi Al-Baha Industrial City: North of Al-Aqiq Governorate and 23 km from King Saud Domestic Airport.
- Saudi Assir Industrial City: Northwest of Khamis Mushait on Al-Madinah Al-Munawarah Road, 3 km south of GASCO.
- Saudi Najran Industrial City: Northeast of Najran city, and west of Al-Husainiyah Village.
- Saudi Jazan Industrial City: East of Jazan city near Abu Noura village.
- Saudi Ar’ar Industrial City: Northeast of Arar City on Arar-Iraq North Road.
- Saudi Hafr Al-Batin Industrial City: Southeast of Hafr Al-Batin Governorate, 22 km South of Qaisumah near Kuwait and Iraq borders.
- Saudi Shaqraa Industrial City: Southwest of Shaqra, 12 km south of Shaqra University.
- Saudi Al-Zulfi Industrial City: Southeast of Al-Zulfi, 6 km away from Zulfi housing project.
- Saudi Dhurma Industrial city: West of Riyadh, 7 km northwest of Dhurma.
- Saudi Wa’ad Al-Shamal Industrial City: 20 km east of Turaif Governorate, near Jordan.
- Saudi Taif Industrial City: It is located about 58 km from Taif city center.
Economic Cities as Free Zones in KSA
The other segment of Saudi free zones is the economic cities that provide a comprehensive package and infrastructure for easy company setup services in Saudi Arabia to the business investors in the Kingdom. The basic and key concept of the business cities as free economic zones involves Mega Initiative with New Concept and Integrated Cities. Some of the free economic are as follows:
- King Abdullah Economic City as a free economic zone.
- Knowledge Economic City free zone.
- Prince Abdulaziz Bin Mousaed Economic City as a free zone.
- Jazan Economic City free zone.
Major Business Sectors Which Attracts FDI in KSA
Taking initiative for company setup services in Saudi Arabia for different businesses is a profitable move which attract FDI in a few major business sectors like:
- Business in the chemical industry.
- Business in real estate.
- Business in coal, gas and extraction.
- Business in the automotive industry.
- Business in hotels and tourism industry.
- Business in the plastics industry.
- Business in industrial manufacturing.
Top Businesses for Company Setup in Saudi Arabia
The KSA government is simplifying its laws for making company setup services in Saudi Arabia easier to attract numerous world business industries to come forward and settle in the Kingdom.
Some of the Saudi promising business sectors that open the door for company setup in KSA. As a result these sectors contribute to the progressive mode of diversifying the non-oil business sectors such as:
- Business in Hospitality
- Business in Travel and Tourism
- Business in Construction
- Business in Food and Beverage
- Business in Healthcare
- Business in Cleaning
- Business in FinTech
Business Rules and Regulations in Saudi Arabia
Many prospective world investors who like import/export business to invest in prefer the Saudi market because of its favorable company setup services in KSA. The Kingdom has made specific business rules for different categories of industries and professionals, for example:
- As most of the consumer products in KSA are duty-free such as rice, corn, sugar, roasted coffee, livestock, barley, etc.
- There are 20% customs duties imposed on imported commodities to protect the national infant and small industries.
- Auditors, accountants, lawyers must obtain the license from the Ministry of Commerce and Industries.
- A certificate of “Halal” meat is required for dealing with the import of meat products in Saudi.
- The companies dealing with the export of seeds and grains must keep a check that the ingredients in the packet are written in both Arabic and English.
Types of Company Setup in Saudi Arabia: Business Entities
Fahad Al Tamimi provides quality company setup services in Saudi Arabia for different business entities such as:
- Sole Proprietorship or Establishment
- Saudi Arabia Temporary Commercial Registration
- Saudi Arabia Joint Liability Company
- Saudi Arabia General Partnership Company
- Saudi Arabia Limited Partnership Company
- Saudi Arabia Partnership Limited by Shares
- Saudi Arabia Limited Liability Company
- Saudi Arabia Corporations
- Saudi Arabia Joint Venture
- Saudi Arabia Joint Stock Company
- Saudi Arabia Branch Office
- Saudi Arabia Representative Office
- Saudi Arabia Variable Capital Companies
- Saudi Arabia Technical and Scientific Offices
A Quality Company Setup Services in Saudi Arabia
Company registration in KSA must be in accordance with the Saudi New Company Law 2022. The commercial business entity registration in Saudi gets handled by the Ministry of Commerce and Industry (MOCI), who has the authority to approve the company incorporation process. Our company formation professional consultants provide a quality and affordable company setup services in Saudi Arabia through the following steps:
1. Selection of Industry or Business Type and its Structure
The very first step in company setup services in Saudi Arabia is the type of the business you want to start. How the selected industry performs in the preferred location that may be profitable. In addition, you have to decide the corporate structure like number of shareholders and initial capital requirement.
2. Trade Name Selection
The selection of a business or trade name is the key part of the company setup process in KSA after deciding the type of industry. Because the trade name acts as the face of the company, so choose it very carefully while keeping the following points in mind:
- The name of the trade or company shouldn’t be like a copy of any existing competitors.
- The name shouldn’t reflect an offensive sound or hurt the religious values.
- The name of a limited company should hold the word “Limited” or the “Ltd.”
3. Knowing the Corporate Rules of Saudi Arabia
The Kingdom’s business rules and regulation you should be aware of which is mandatory while doing business in Saudi Arabia. Therefore you must discuss with your business consultant before proceeding for the company setup services in Saudi Arabia. It will help you understand the ground level of business operation in KSA.
4. Drafting of Business Plan
Drafting a business plan with the essential points will help you move on to the next step for effectively using the company setup services in Saudi Arabia. Planning is the key of essential steps in any business management, so you have to outline the necessary moves to save time and carry out the company formation process smoothly.
5. Essential Documents Submission
Company registration in Saudi Arabia requires the submission of essential documents to different government institutions where authorities will verify. The various documents are needed to ease the company setup services in Saudi Arabia like:
- A company registration application form duly filled up with required information.
- A parent company’s board resolution approving the entity incorporation in the KSA.
- Trade name confirmation copy.
- Business directors and shareholders’ identity and address proofs.
- Company’s proposed memorandum of association (MOA).
- Proposed company’s articles of association (AOA).
- Company’s business blueprint
- Company’s bank account reference letter.
- Company’s power of attorney appointing a third party to represent the parent company.
- Approval of third-party, if any.
Note: The above documents are to be translated into Arabic as per original copies.
6. Having a Physical Office
A physical office is essential for any company setup service in Saudi Arabia to process all the business activities from there. It helps the company in many ways like opening of bank accounts, to and fro communication, etc.
7. Required Approvals from Government Authorities
Any business investor who wants to start a business with the help of Company setup services in Saudi Arabia has to get approvals of required documents from the following authorities:
- Ministry of Commerce and Industries (MOCI) for company registration.
- Approval from the Chamber of Commerce.
- Approval from the Labour Office.
- Approval from the Municipality of locality.
- Approval from the General Organization for Social Insurance (GOSI).
- Approval from the Department of Zakat and Income Tax (DZIT).
- Required approval from the Ministry of Investment of Saudi Arabia (MISA).
In addition to above approvals different nature of business entities require approval from a specific ministry. For example, if you want to set up a company in the healthcare sector, it needs approval from the Ministry of Health of Saudi Arabia and likewise for other sectors.
Post Company Setup Services in Saudi Arabia
Some of the key services that are needed after business setup in Saudi Arabia, for example:
1.Application for company’s bank account in a nearby bank.
2.Hiring the required employees for the company’s functioning.
3. Designing company’s logo for intellectual property (IP) protection.
4. Development of a website for the company’s online presence.
5. Initiating accounting and bookkeeping processes to maintain a proper record of the company’s businesses.
Contact us for quality company setup services in Saudi Arabia.