Business Setup

Can I start a Business in Saudi Arabia? The Ultimate Guide

Can I start a Business in Saudi Arabia? The Ultimate Guide

Until the year 2018, Saudi Arabia was a challenging destination for business. 2018 saw several advancements in the country’s concepts and guidelines, making it easier for people to start their enterprises. A summary of the progressions is provided below.

To encourage additional investment, the time it takes to process a business permit in Saudi Arabia has been reduced by more than 92%. Investment licences should be restored online using a self-service entry on the Saudi General Investment Authority (SAGIA) website.

The SAGIA has reduced processing time significantly. Businesses must submit only approved commercial registration and financial statements to the investment authority in order to be granted a licence. Foreign investors can establish marketing, sales, and administrative offices or workplaces to supplement industrial or non-industrial activities.

With so many changes to its principles and guidelines, Saudi Arabia could be an excellent place to establish a business, especially at this time. Because of Saudi Arabia’s rapidly expanding market, you can claim 100% ownership of your company, regardless of your nationality. Starting a business in the Kingdom of Saudi Arabia could be a significant step forward if done strategically.

Why Should Foreigners Invest in Saudi Arabia? 

Saudi Arabia’s ground contains exciting potential and opportunities for foreign commercial investors. The question of foreign investment in Saudi Arabia has the following answers:

Saudi Arabia has successfully dealt with the COVID-19 problem and is ready to relaunch its economy. In the fourth quarter of 2020, the country expanded by 2.85%, and it was predicted to expand by 2.6% in 2021 and 4% in 2022.

A favourable trend can be noted in the population and business, which opens up new opportunities for international business investors to start their own businesses.

Another factor that encourages foreign business investors to start a firm in Saudi Arabia is the straightforward company development process.

The double tax treaties are meant to provide an exception to the import/export of commodities.

Vision 2030 is a fundamental structure, an outline for a yearning country focused on growing its economy through a dynamic culture. It is a critical financial and social growth that creates numerous economic opportunities for foreign investors.

Read More: Which Business is Best in Saudi Arabia

Local Knowledge is Key

You should be well-informed on Saudi Arabia and the surrounding area. Keeping this in mind, you should be prepared to conduct extensive research about the country, the Middle East, and the industry or area in which your company intends to operate. Even if you are an industry expert in your home country, the Kingdom will be unique.

Aside from local knowledge, you will also need a solid business strategy that includes an inquiry and study of the economic environment, potential competitors, and your forecast. You should also be prepared to hunt for and obtain investment using your own assets, regardless of the principles of admission.

Despite the lessening of restrictions, starting a business in the Kingdom of Saudi Arabia is more than just selecting a product online and creating a store. There is a specific strategy that should be followed. Furthermore, like with any major business decision, business owners who are considering expanding into the destination should make a few preparations. As a result, if you are unfamiliar with the jurisdiction, seeking professional assistance and counsel might be a wise move. In any event, if you want to learn more about it, please see our blog on the 4 Core Reasons to Hire an Offshore Business Consultant.

Prerequisites To Start a Business in Saudi Arabia For Foreign Entities

To assure the capacity and eligibility of any foreign business owners to invest in Saudi Arabia, with sufficient experience to develop a successful firm that benefits the Saudi economy, you need to have:

  • An enrolled business outside Saudi Arabia that has been in operation for at least a year.
  • An inspected financial statement for your organisation for a comparable period.

However, Saudi Arabia’s government fully supports individual business visionaries who own intellectual property rights and documented patents from globally or locally recognised entities by providing them with the opportunity to build their business without the need for a current company outside the Kingdom. Just for this circumstance, you will be awarded investment permission under the entrepreneurial class to start your Saudi-based business.

Read More: How to Set Up a Business in Saudi Arabia?

The Process to Start a Business In the Kingdom Of Saudi Arabia As a Foreigner

The complete process can be summarised in the steps listed below.

  • Prepare a complete set of paperwork and submit it to the Saudi office.
  • To obtain an investment licence for your company, submit an application to the Ministry of Investment of Saudi Arabia (MISA; formerly known as the Saudi Arabia General Investment Authority (SAGIA).
  • Following the introduction of your company’s name and Articles of Association, obtain approval from the Ministry of Commerce and Industry.
  • Sign the Articles of Association in front of a notary public.
  • In the official gazette, publish the firm name and Articles of Association.
  • For any foreign workers (such as business owners and directors), apply for work/home visas through the Ministry of Interior, General Department of Passports, and Ministry of Labour.
  • Now, join the local Chamber of Commerce and the Ministry of Commerce and Industry.
  • Obtain the document number and the certificate of business initiation. This is accomplished by collaborating with the Ministry of Finance and the Department of Zakat and Income Tax.
  • Then join the General Organisation of Social Insurance. 
  • Open a bank account, transfer the share capital, and obtain a certificate indicating that the capital has been deposited.

How Can We Help?

At Batic Law Firm, we assist entrepreneurs in turning their business ideas into reality. From selecting the best goal to incorporation and setting a bank account, our business setup specialists handle the entire process.

If you want to consolidate your business in the Kingdom of Saudi Arabia and require assistance with everything from strategic deduction to managing legal compliance, we are here to help. Please contact us today.

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