Business Incorporation in Saudi Arabia

Business Incorporation

Starting a Business in Saudi Arabia, the largest economy in the middle east and the seventeenth largest economy in the world, is often a dream for a lot of us.And needless to say, anything important never comes easy in life, right? Incorporating a business in Saudi is not easy task, the requirements & documentation can feel overwhelming and difficult. But worry not, Sixxth Altitude is here to take that burden off your shoulders.

Below are the brief steps in business incorporation in Saudi Arabia:

Determine Business Structure

Anyone wishing to incorporate a business in Saudi Arabia must first determine the business structure he/she wishes to set up.
- Limited Liability Company (LLC): This is a structure common for small to medium enterprises.
- Joint Stock Company (JSC): JSCs are suitable for larger businesses and requires more capital.
- Branch Office: This structure is for foreign companies wishing to operate in Saudi Arabia.

Choose a Business Name

The name must comply with Saudi naming conventions and must be unique. It should not be offensive or similar to existing companies.

Obtain Initial Approval

The next step is that we need to apply for a business license through the Ministry of Investment (MISA). This includes submitting the required documents and receiving initial approval, Sixxth Altitude can manage this process seamlessly for you.

Prepare Required Documents

Common documents include the following. Please note, this list is not exhaustive, and this list is subject to change without any prior notice by the Saudi Government.
- Articles of Association: Outline the company structure and operations.
- Shareholder Agreements: If applicable.
- Identification: Passports and IDs of shareholders and directors.
- Proof of Address: Local address for the business.

Deposit Capital

For LLCs, a minimum capital is required (usually around SAR 500,000). This must be deposited in a local bank account.

Register the Company

Once we have all approvals and documents, we need to register the company with the Ministry of Commerce and Investment (MoCI). You’ll receive a Commercial Registration (CR) certificate.

Obtain Necessary Licenses

Depending on the business activity, you may need additional licenses from relevant authorities (e.g., health, environment). Sixxth Altitude can make the process hassle free for you.

Register for Taxation

Register with the General Authority of Zakat and Tax (GAZT) for tax purposes. This includes obtaining a Tax Identification Number (TIN).

Open a Business Bank Account

Open a corporate bank account to manage finances and transactions.

Compliance with Local Regulations

Ensure compliance with Saudi labor laws, Saudization requirements (employment of Saudi nationals), and other regulations.

Additional Considerations

Foreign Ownership: Depending on the industry, there are regulations regarding foreign ownership. Some sectors may require a local partner.

Overwhelming right? We feel you. But worry not, Sixxth Altitude can assist you with the business incorporation, anywhere in Saudi Arabia. Get in touch with us today and give wings to your dreams!

Tel: +966 59 268 2051
Email: query@6thmove.com

Al Anoud Tower 2, King Fahad Road, Al Olaya District, Riyadh 11625, Saudi Arabia

A506, Lynx Business Towers, Opposite Silicon Central Mall, Silicon Oasis, Dubai, UAE