Obtaining a business license involves dealing with the Ministry of Investment Saudi Arabia (MISA) and the Ministry of Commerce (MoC). For foreign investors, a common legal status is a Limited Liability Company (LLC), for which 100% foreign ownership is possible through MISA
Companies must have a track record of at least one year and audited financial statements showing profitability from the last fiscal year. Additionally, appointing a General Manager who will reside in Saudi and handle formalities like bank account operations is essential. The first employee, after the General Manager, must be a Saudi national, and companies need to comply with “Saudization” initiatives
Saudi Arabia promotes 100% foreign ownership in many sectors, with licenses issued through MISA allowing foreign investors to own a company fully in the Kingdom
The setup process includes selecting a business entity, registering the company name, opening a bank account, registering with the Ministry of Commerce and Investment, obtaining necessary licenses and permits, and adhering to legal and regulatory requirements such as accounting, auditing, taxation, and labor laws
Saudi Arabia offers various corporate entities, including Limited Liability Company (LLC), Joint Stock Company (JSC), Single Member Limited Liability Company (SMLLC), Limited Partnership Company (LLP), Joint Ventures, Branch Office, and Representative Office. Understanding the right entity is crucial for compliance and operational efficiency
Promising sectors include Tourism and Hospitality, Steel Manufacturing, Engineering and Technology, Real Estate, Education, Healthcare and Pharmaceutical, Financial Services, and Media and Entertainment, reflecting the country’s diversifying economy and the young demographic’s rising domestic demand
Saudi Arabia’s efforts to ease the business climate include simplifications in starting businesses, protection for minority investors, streamlined contract enforcement, and improvements in credit availability and cross-border trading
Saudi Arabia has developed industrial and economic free zones offering benefits like 100% foreign ownership, tax exemptions, and support for manufacturing and various economic activities, aiding the country’s economic diversification away from oil
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