Business Set up in Saudi Arabia with 100% Foreign ownership

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Business Set up in Saudi Arabia with 100% Foreign ownership
Starting a Business in Saudi Arabia for Trading and Transportation with 100% Foreign ownership

Setting Up a Business in Saudi Arabia with 100% Foreign ownership

Who Can Open a 100% Foreign-Owned Company in Saudi Arabia?

Foreigners with an existing company abroad can open 100% foreign ownership
GCC nationals.
Saudis.

Key Steps to Obtain a Business License with 100% foreign ownership:

Choose a commercial name.
Apply for a MISA license.
Manage the license.
Issue a GM visa.
Register on relevant portals.
Open a bank account.

Essential Documents for Commercial Registration:

Current company registration copy.
Memorandum of Association.
Financial audit report.
Passport copies of key stakeholders.
Power of Attorney.

Incorporation and Post-Incorporation Services:

Publish Articles of Association (AOA).
Obtain Commercial Registration (CR).
Register with the Chamber of Commerce.
Open a labor file with MHRSD.
Register on QIWA, Muqeem, SPL, GOSI, Mudad, and ZATCA portals.
Obtain special licenses if necessary.

For more detailed information, please visit Global Saudi Partners.

Starting a Business in Saudi Arabia for Trading and Transportation with 100% Foreign ownership

Business set up in Saudi Arabia

Eligibility for 100% Foreign Ownership for Trading Services

Foreigners with existing CR abroad from 3 international market.
Company Capital should be 30M SAR.
Commit to investing 300M SAR including 30M of capital in the next five years.
Should comply with Saizan program for Ministry of Human Resorces.
Must have a training program for the Saudi national employees.
Capital has to be deposit to any of the Saudi bank and get a certification
GCC Nationals
Saudis

Trading Services eligibility in details

Unlock the potential of your business by entering the vibrant Saudi market. To ensure a seamless and successful establishment, foreign businesses must adhere to specific requirements that underscore their global experience, financial stability, and commitment to local development.

Global Presence with Commercial Registration (CR)

Foreign businesses must possess an existing Commercial Registration (CR) from at least three international markets. This showcases the company’s global reach and operational expertise, ensuring that only well-established enterprises venture into the Saudi market. By demonstrating a robust international presence, your business can gain a foothold in this dynamic economy.

Financial Stability with Company Capital Requirements

To set up a business in Saudi Arabia, a minimum company capital of 30 million Saudi Riyals (SAR) is mandatory. This capital must be deposited in a Saudi bank, with a certification obtained to confirm the deposit this requirement guarantees that your company has the necessary financial stability to operate effectively and contribute positively to the local economy.

Commitment to Significant Investment

Beyond the initial capital, your company must commit to a total investment of 300 million SAR over the next five years, including the initial 30 million SAR. This substantial investment is pivotal for the development and expansion of your business in Saudi Arabia, fostering job creation and driving economic growth although.

Adherence to the Saizan Program

Compliance with the Saizan program from the Ministry of Human Resources is essential. This program aims to enhance the skills and employability of Saudi nationals, ensuring that foreign businesses contribute meaningfully to the local workforce’s development. Adhering to the Saizan program reflects your company’s dedication to corporate social responsibility and sustainable business practices also .

Implementing a Training Program for Saudi Nationals

Foreign companies are required to implement a comprehensive training program for Saudi national employees although this program should focus on developing the skills and capabilities of local talent, equipping them to contribute to the company’s success. Investing in the professional growth of Saudi nationals helps build a skilled and competitive workforce in Saudi Arabia.

Securing Bank Certification

The company capital must be deposited in a Saudi bank, and a certification from the bank confirming the deposit must be obtained. This certification is a critical step in the business setup process, providing assurance to regulatory authorities that your company has the financial resources to support its operations in Saudi Arabia.

Steps to Obtain a Business License with foreign ownership

Select a Commercial Name: Ensure it’s unique and complies with Saudi regulations.
Apply for a MISA License: Submit the required application to the Ministry of Investment of Saudi Arabia.
License Management: Handle all procedural requirements.
Issue a GM Visa: Obtain a visa for the General Manager.
Portal Registrations: Register on necessary government portals such as QIWA and Muqeem.
Open a Bank Account: Set up a corporate bank account in Saudi Arabia.

Necessary Documents for Commercial Registration with foreign ownership

Company Registration Copy: Proof of your current business registration.
Memorandum of Association (MOA): A document that outlines the company’s structure and objectives.
Financial Audit Report: Recent financial statements.
Passport Copies: For key stakeholders and shareholders.
Power of Attorney: Legal authorization for representatives to act on behalf of the company.

Incorporation and Post-Incorporation Services Proses

Publish Articles of Association (AOA): Make your company’s AOA public.
Obtain Commercial Registration (CR): Secure your company’s CR certificate.
Chamber of Commerce Registration: Enroll your business with the local Chamber of Commerce.
Labor File with MHRSD: Open a labor file with the Ministry of Human Resources and Social Development.
Register on Various Portals: Complete registrations on platforms like SPL, GOSI, Mudad, and ZATCA.
Special Licenses: Acquire additional licenses if your business requires them.

Who can I contact for assistance with obtaining a trading services license?

You can contact the Ministry of Commerce and Investment (MCI) or consult with local legal and business advisors who specialize in Saudi business law.

How can I apply for an e-commerce license?

The application process for an e-commerce license is similar to other trading licenses. You will need to:
Register the Company: Obtain a Commercial Registration (CR).
Apply Online: Submit an application through the MCI online portal.
Submit Documentation: Provide required documents, including proof of website and online business plan.
Pay Fees: Pay the applicable fees.
Approval: Wait for the application to be reviewed and approved.

Can I trade online with a trading services license?

Yes, you can engage in e-commerce activities. If you plan to trade primarily online, you should apply for an e-commerce license.

What ongoing compliance is required for trading services licenses?

Annual Renewal: Trading licenses must be renewed annually.
Tax Filing: Regular filing of VAT and other applicable taxes with the General Authority of Zakat and Tax (GAZT).
Business Activity Reports: Periodic reporting of business activities to the MCI.

Do I need a local partner to obtain a trading services license?

For most trading activities, a local partner is not required, but having one can be beneficial for navigating local regulations and business practices.

Are there any restrictions on foreign ownership for trading licenses?

Foreign investors can own up to 100% of a trading business in many sectors. However, some sectors may have restrictions or require a local partner.

What are the costs associated with obtaining a trading services license?

Commercial Registration Fees: Approximately SAR 2,000 per year.
Trading License Fees: Can range from SAR 3,000 to SAR 10,000, depending on the type and scale of the business.
Other Administrative Fees: Varies based on additional services required, such as notary and translation services.
Yearly renewal fee: 62000 SAR

How long does it take to obtain a trading services license?

The process usually takes between 1 to 2 weeks, depending on the completeness of the application and the type of trading license.

What is the process for obtaining a trading services license?

Register the Company: Obtain a Commercial Registration (CR) from the MCI. This involves submitting the company’s Articles of Association, identity proof of shareholders, and other necessary documents.
Submit an application: Apply for the trading license through the MCI online portal or at an MCI branch.
Provide Required Documents: Submit all necessary documentation, including proof of address and business plan.
Pay Fees: Pay the applicable licensing fees.
Approval and Issuance: Once the application is reviewed and approved, the license will be issued.

What are the requirements for obtaining a trading services license?

Commercial Registration (CR) Certificate
Bank Reference Letter
Proof of Business Address
Copy of the Passport/ID of the Owner/Shareholders
Detailed Business Plan

What are the different types of trading services licenses available?

Wholesale Trading License
Retail Trading License
E-commerce License

What is a trading services license?

A trading services license permits businesses to engage in trading activities, such as buying, selling, importing, and exporting goods and services within Saudi Arabia.

What are the tax obligations for businesses in Saudi Arabia?

Corporate Tax: 20% on the profits of foreign-owned businesses.
VAT: 15% on goods and services.
Zakat: A religious wealth tax applicable to Saudi and GCC nationals.

What incentives are available for foreign investors?

Tax Incentives: Reduced corporate tax rates in certain sectors.
Economic Cities: Special economic zones with various benefits.
Government Grants: Financial support for specific industries.

What is the minimum capital requirement for setting up a business?

The minimum capital requirement varies by business type. For example, an LLC requires a minimum capital of SAR 500,000.

What are the different types of business entities I can set up in Saudi Arabia?

Sole Proprietorship
Limited Liability Company (LLC)
Joint Stock Company
Branch Office
Representative Office

For further details, please visit Global Saudi Partners.