How To Open Company In Saudi Arabia With 100% Foreign Ownership

Saudi Arabia has made daring moves to welcome more foreign investors in recent years. The Kingdom now permits 100% foreign ownership in Saudi Arabia across an expanding range of industries thanks to extensive regulatory reforms and an economy that is diversifying beyond oil.

If you’re prepared to open company in Saudi Arabia, this guide will help you with every stage of the process, from preliminary planning to final registration. To take advantage of one of the most vibrant markets in the Middle East, it is crucial for tech innovators, manufacturers, and service providers to comprehend the Saudi Arabian company registration procedure.

Why Choose Saudi Arabia For 100% Foreign Ownership?

1. Strategic Position – Saudi Arabia provides unparalleled access to emerging markets due to its strategic location at the intersection of Europe, Asia, and Africa. Serving clients in the Gulf Cooperation Council (GCC) and beyond is made possible by having a local presence.

2. Strong Economic Vision – The Kingdom is making significant investments in non-oil industries, such as technology, tourism, renewable energy, entertainment, and more, as part of Vision 2030. For international investors, the dedication to economic diversification opens up new avenues for investment.

3. Reforms in Regulation – The Ministry of Investment recently changed the rules to allow companies that meet specific requirements to have 100% foreign ownership in Saudi Arabia, doing away with the need for local partners in many industries.

4. Competitive Rewards – To speed up your market entry, economic cities and special zones offer generous incentives like tax holidays, exemptions from customs duties, and simplified licensing.

Steps to Open Company in Saudi Arabia

1. Define Your Business Activity and Legal Structure

Choose a suitable legal form and decide on your main activities before you start filing. Among the most popular structures are –

• Limited Liability Company (LLC) – SMEs benefit greatly from limited liability companies (LLCs); the initial capital requirement is SAR 500,000, depending on the activity.

• Joint Stock Company (JSC) – A joint stock company (JSC) is appropriate for large-scale endeavors; it needs SAR 10 million in capital and at least three shareholders.

• Branch of a Foreign Company – Permits you to conduct business using the name of your parent company; a local service agent must be appointed.

Make sure the activity you have selected is one that has been authorized for full foreign control in Saudi Arabia, as you are aiming for 100% foreign ownership in Saudi Arabia. IT services, renewable energy, and sophisticated manufacturing are among the top contenders on the list, which is updated frequently by the Ministry of Investment.

2. Reserve a Company Name

In Saudi Arabia, reserving a distinctive trade name with the Ministry of Commerce (MoC) is the next stage in the company registration process in Saudi Arabia. Your name needs to be –

• Be different from things that already exist.
• Avoid violating trademarks.
• Show the authorized scope of the business.

Make your reservation using the MoC’s online portal to check availability; it’s good for 90 days, so you have time to gather your paperwork.

3. Draft and Notarize the Articles of Association

Prepare the Memorandum of Association (MoA) or Articles of Association (AoA) in accordance with the type of company, keeping your name reserved –

LLC – Describe the managerial structure, decision-making procedures, shareholders’ equity, and profit-loss distribution.

JSC – Provide information about share capital, board composition, and regulatory compliance provisions.

Get a Saudi notary public to notarize the AoA. This is required for the next licensing stage and formally signifies your commitment.

4. Apply for the Investment License

Apply for an investment license via the Ministry of Investment’s online application system (MISA) to formally establish your Saudi company setup. You will require –

• AoA/MoA and copies of passports are examples of certified corporate documents.
• A thorough feasibility study and business plan.
• Evidence of capital deposit (through a bank account that has been blocked).

Your investment license must be displayed at your location and, if granted, gives you 100% foreign ownership.

5. Complete Commercial Registration and Licensing

Once your investment license has been obtained, go ahead and company registration process in Saudi Arabia with the Ministry of Commerce –

• Obtain the Legal Entity’s Registration – Send in the notarized AoA, shareholder IDs, and investment license.
• Acquire Commercial Registration (CR) – This provides your official CR certificate, which includes the legal name, CR number, and business operations of your company.
• Membership in the Chamber of Commerce – All businesses must have it in order to communicate with government agencies and receive special discounts.

You might also require sector-specific approvals, such as those from the Saudi Food & Drug Authority, Saudi Standards, Metrology and Quality Organization, or the Telecommunications and Digital Government Regulatory Authority, depending on your activity.

6. Set Up Your Corporate Bank Account

Open a corporate bank account in Saudi Riyal (SAR) after obtaining your CR. The majority of domestic and foreign banks provide –

• Devoted managers of relationships.
• Portals for online banking.
• Facilities for international trade in multiple currencies.

Authorized signatories’ identification documents, investment licenses, and CR will be needed by your bank.

7. Register for VAT and Labor Requirements

According to the company setup in Saudi Arabia, you have to –

• VAT Registration – Businesses must register for Value-Added Tax (VAT) through the ZATCA portal if their yearly revenue exceeds SAR 375,000.

• Social Insurance (GOSI) – Enroll Saudi and foreign workers in the General Organization for Social Insurance (GOSI).

• Employee Visas and Iqamas – Apply for work visas and resident permits (Iqama) through the Ministry of Human Resources and Social Development to sponsor your foreign employees.

8. Lease Office Space and Obtain Municipality Approval

An official business address will be specified by your CR. Prior to doors being opened –

Obtain a commercial lease in an area that is permitted, such as an industrial or commercial office.

To guarantee adherence to safety and building codes, obtain the Municipality’s “Premises License” (Baladiya license).

Why Choose Express Business Service?

Choosing the right partner is often crucial to successfully navigating the Saudi company setup landscape. Express Business Service has made a name for itself as a reliable resource for business owners looking to launch a fully foreign-owned company in Saudi Arabia. What distinguishes them is this –

1. Completely Support – Express Business Service takes care of everything, from preliminary feasibility studies and trade name reservations to licensing, registration, and visa processing.

2. Regulatory Knowledge – Their staff keeps up with changes in regulations, guaranteeing that your business always conforms with the most recent requirements for a company registration process in Saudi Arabia.

3. Personalized Service – They customize solutions based on your industry and growth forecasts, whether you’re a startup or a multinational corporation seeking to grow.

4. Speed and Efficiency – They speed up approvals by utilizing local connections with government agencies, which enables you to launch more quickly.

5. Transparent Pricing – There won’t be any surprises or hidden costs when you receive detailed, itemized quotes.

Conclusion

It has never been easier to start a fully foreign-owned business in Saudi Arabia. In many growing industries, investors can now establish a business in Saudi Arabia without a local partner thanks to forward-thinking reforms under Vision 2030. You will set yourself up for success by following this comprehensive guide to a company registration process in Saudi Arabia, which includes everything from reserving a trade name to obtaining your CR, VAT registration, and municipality approvals.

Join forces with Express Business Service to expedite the establishment of your Saudi company, take advantage of Saudi Arabia’s 100 percent foreign ownership, and put your business at the forefront of one of the most exciting markets in the world. Now is the moment to take action; take advantage of this chance to make your global goals a reality. 

Also Read: LLC Company In Saudi Arabia – Why Limited Liability Is The Smart Choice