How to Set up a New Business in Saudi Arabia?

Business Setup in Saudi Arabia


The Kingdom of Saudi Arabia offers exciting opportunity for foreign investors. A G20 economy with a young and highly-educated population, it also boasts a strategic location at the heart of major trade routes crossing three continents and bountiful natural resources. As part of Vision 2030, a wide range of economic reforms has succeeded in creating new business opportunities, leveraging Saudi Arabia’s key strategic assets, and driving economic growth and diversification

Setting up a new company in Saudi Arabia as a foreigner may seem like a complex process. However, with careful planning and the expertise of business setup consultants in Saudi, it can be a smooth and rewarding venture.

In this comprehensive guide, we’ll walk you through the steps and requirements to establish your business in Saudi Arabia. Read ahead for more insights:

Understand Business Environment

Before diving into the process, it’s crucial to research and understand the Saudi business landscape. Familiarize yourself with the local market, competition, and the economic sectors that are experiencing growth. Having a clear business plan is essential.

Choose Your Business Structure

Saudi Arabia offers several business structures, including:

  • Limited Liability Company (LLC): Suitable for small and medium-sized enterprises. Requires at least two shareholders.
  • Joint Stock Company: Recommended for larger businesses. Requires a minimum capital of SAR 10 million (approximately $2.7 million USD).
  • Branch Office: If you’re an existing foreign company, you can establish a branch in Saudi Arabia.

Meet Legal Requirements

You need to meet the mandatory legal requirements to start any business in Saudi Arabia:

  • Foreign Investment License: Obtain a foreign investment license from the Saudi Arabian General Investment Authority (SAGIA). You can apply online through their portal.
  • Commercial Registration: Register your business with the Ministry of Commerce and Investment (MOCI) to obtain a commercial registration certificate.
  • Obtain Office Space: You will need a physical address for your business operations. This can be either a commercial space or a virtual office.
  • Minimum Capital Requirement: Depending on your business structure, you may need to deposit a minimum capital amount in a local bank.
  • Local Partner or Agent: In some cases, you may need a local partner or agent, depending on your business activities.
  • Open a Corporate Bank Account: Choose a local bank and open a corporate bank account to facilitate financial transactions related to your business.

Secure Necessary Licenses and Permits

Professional License: Depending on your business activities, you may need specific licenses or permits. For example, healthcare providers need a license from the Saudi Commission for Health Specialties.

Municipality License: Certain activities may require licenses from the local municipality where your business is located.

Industrial Licenses: For manufacturing or industrial activities, you will need an industrial license from the relevant authority.

Register for VAT

Saudi Arabia introduced a Value Added Tax (VAT) in 2018. Ensure your business is registered for VAT and complies with the tax regulations.

Hiring and Employment

Hire qualified local and foreign staff, and ensure compliance with Saudi labor laws and regulations.

Document Authentication

Depending on your home country, you may need to authenticate certain documents, such as your business formation documents, with the Saudi Arabian embassy or consulate.

Ongoing Compliance

Stay informed about changes in Saudi Arabian laws and regulations that may affect your business. Compliance is crucial to avoid legal issues.

Engage Local Expertise

Hiring business setup consultants in Saudi who are well-versed in local business laws and regulations can greatly facilitate the process and help you navigate any complexities.

Benefits of Company Set UP in Saudi 

The Kingdom’s attractiveness as a prospect to any savvy business owner is not just limited to the nation’s openness to foreign investments or physical location within the Middle East, but it is because the country provides:

  • Attractive property solutions across 35 rapidly growing cities and commercial hubs
  • Supply of industrial land and commercial real estate at competitive prices
  • A young and skilled workforce (50% of the country’s population is under 25 years old)
  • One of the safest places in the world with a high-quality healthcare system.

Hire Best Business Setup Consultants in Saudi 

Setting up a business in Saudi Arabia can be a rewarding endeavour, given the nation’s favourable business environment and strategic advantages. Navigating the complexities of company formation, licenses, and regulations, however, requires expert guidance. Business setup consultants in Saudi Arabia such as Jitendra Business Consultants (JBC) can serve as valuable partners throughout the process, leveraging their knowledge and experience to help you establish a successful business presence in Bahrain.  We are one of the leading providers of business setup services in Bahrain. By collaborating with JBC’s professionals, you can unlock the full potential of this thriving Gulf nation while minimizing risks and maximizing opportunities.

Privacy Preferences
When you visit our website, it may store information through your browser from specific services, usually in form of cookies. Here you can change your privacy preferences. Please note that blocking some types of cookies may impact your experience on our website and the services we offer.