Company Formation in Saudi Arabia

Saudi Arabia has been encouraging new investment initiatives in recent years with the Saudi Vision 2030 and the National Investment Strategy announced by MISA. Company Formation in Saudi Arabia, this strategy and investment policies encourage both multinational companies and Small and Medium Enterprises to invest in Saudi Arabia on a global scale. Saudi Arabia offers incentives such as tax exemptions and reduced tax rates for company formation. In addition, allowing 100% foreign ownership in industrial and economic free zones is also attractive for investors.

Company Formation Opportunity with 100% Ownership

The procedures and conditions for all government permits required for foreign commercial companies to set up business in Saudi Arabia are clearly defined. The Ministry of Investment issued an investment manual in 2020, which explains in detail the steps required for foreigners to register their businesses. It is also emphasized that after the issuance of the license, commercial business activities are subject to rules and limitations.

Documents Required to Establish a Company in Saudi Arabia

The documents required to establish a company in Saudi Arabia must be translated into Arabic before being submitted to the authorities. These documents include the company registration application form, third party approvals (if applicable), board resolution approving the incorporation of the parent company in Saudi Arabia, address and identity documents of the business shareholders and directors, bank account reference letter, articles of association (AOA), a copy of the trade name approval, business plan, power of attorney authorizing the third party to represent the parent company, and partnership agreement (MOA). Saudi Arabia offers investors a transparent business start-up process and encouraging investment opportunities.