Thanks to the Kingdom's ambitious vision for 2030, Saudi Arabia has become one of the fastest-growing markets in the world. Establishing a foreign company in Saudi Arabia is no longer just an option but an irreplaceable opportunity for success and expansion. But how can you enter this promising market easily and achieve maximum benefit?
we will reveal the secrets of establishing a foreign company in Saudi Arabia, and I will explain to you step by step the procedures and conditions that ensure the successful launch of your project. Continue reading to find out how this decision can be a turning point in your professional life!
Establishing a foreign company in Saudi Arabia means that a foreign investor or company based outside Saudi Arabia
establishes a new commercial entity in Saudi Arabia, to practice commercial activities legally in Saudi Arabia by the regulations and laws in force in the Kingdom, and this is done by obtaining all the required licenses from the competent government agencies and the Saudi Ministry of Investment, taking into account compliance with all regulations and laws related to establishing a foreign company in Saudi Arabia.
There are several different types of companies that foreign investors can establish in Saudi Arabia depending on the nature of the activity to be practiced, and the most prominent of these forms are:
Where the parent company establishes a branch in the Kingdom to practice its commercial activities directly, and the branch is fully owned by this foreign company and practices the commercial activities authorized by the parent foreign company.
In some sectors such as industry, services, and technology, foreign investors are allowed to invest in them and establish a foreign company owned by them 100%, allowing them complete control over the project and not needing any local partner.
A company based on a partnership between a Saudi investor and a foreign investor, characterized by its ease of adapting to local regulations and the two partners benefiting from each other's experiences.
This type is one of the types of non-commercial investment, where the foreign company can establish an office in Saudi Arabia study the market and its requirements, promote a service or product, and take care of the activities of the parent company. It is one of the best options for promotional activities and research because it cannot achieve any profits from practicing commercial activities.
It is a joint stock company established by Saudi and foreign investors, and this type is very suitable for projects that require joint financing.
Etmaam Company helps you with all government procedures and helps speed up its operations, safely and with quality. Contact Etmaam now to learn more about establishing a foreign company.
Call now on 0554799222
Establishing a foreign company in Saudi Arabia is one of the most important strategic steps that brings many benefits to foreign investors and the Kingdom at the same time, and we can divide the importance of establishing a foreign company in Saudi Arabia into two vertical sections, which are:
The importance of establishing a foreign company in Saudi Arabia for investors
The Kingdom has one of the largest markets in the Middle East, which includes a large number of consumers, which results in the availability of many, many investment opportunities in many different sectors.
Saudi Arabia is the gateway to regional markets, as it operates on a quarter of the three continents together, which greatly facilitated the arrival of a large number of consumers, reaching more than a billion in nearby markets.
The Saudi economy is one of the strongest economic systems in the region and is characterized by its stability despite the global challenges it faces, government policies are also very encouraging and attractive to foreign investment.
The importance of establishing a foreign company for Saudi Arabia
The Kingdom seeks to diversify its sources of income away from oil and also introduce modern industries and technologies that contribute to the development of these economic and local sectors and help establish a foreign company to achieve these goals.
Establishing foreign companies contributes significantly to creating new job opportunities and diverse jobs for residents and also training opportunities on the skills required for the labor market.
The presence of foreign companies stimulates improving the quality of services and products in local markets and works to enhance cooperation between local and foreign companies in the fields of innovation.
Establishing foreign companies contributes mainly to bringing the latest technologies and global expertise, which enhances the competitiveness of the local economy.
Attracting foreign investment contributes to reflecting a clear picture of the investment environment that Saudi Arabia enjoys and also enhances its status as a reliable economic destination at the international level.
To establish a foreign company in Saudi Arabia, some important steps must be followed, which are:
1- Submit an official application to obtain an investment license.
2- The existence of the articles of association and the commercial register of the parent company.
3- Open a bank account for the company in one of the local banks.
4- Apply to the Ministry of Commerce to register the company.
5- Issuance of the official commercial register to practice this activity.
6- Register the company with the Zakat, Tax and Customs Authority.
7- Submit a visa and residence application for foreign employees.
8- There may be several other legal and administrative procedures that you must carry out.
9- Start practicing the desired commercial activity after ensuring that all necessary procedures and licenses are met.
To establish a foreign company in Saudi Arabia, several important licenses must be obtained, the most prominent of which are:
1- Obtaining an investment permit authenticated by the General Investment Authority.
2- Issuing the company's commercial register.
3- Issuing the company's general manager's visa.
4- Obtaining all other permits required by the relevant government agencies.
There is a difference between the two types in several different aspects, and this can be explained through the following:
Is a company wholly owned by Saudi citizens, registered directly with the Ministry of Commerce without the need for any special licenses under local laws without any connection to foreign investment laws, it can practice all local activities without restrictions, and it can easily obtain any loans from local banks.
This company may be wholly owned by foreign investors or in partnership with a Saudi investor, and is managed by foreign investors and its establishment is subject to the foreign investment laws in force in the Kingdom.
It is allowed to practice some activities according to specific sectors. The Saudi government also works to provide many incentives and tax exemptions in some special economic zones to encourage foreign investment in the Kingdom.
Determining the cost of establishing a foreign company in Saudi Arabia depends on many factors such as the type of business activity, the size of the company, and the services required.
The Kingdom sets some clear and easy conditions to ract foreign investment while preserving the interests of the economy of the Kingdom. The most prominent of these conditions are:
1- Obtaining investment licenses.
2- Submitting a clear business plan for the activity to be practiced.
3- This activity must be among the activities that foreign investment is permitted to practice.
4- The necessity of adhering to all laws and regulations in force in the Kingdom related to foreign investment as well.
We are here to turn your vision into reality, whether you are planning to start investing and establishing a foreign company in Saudi Arabia or looking for professional services to facilitate your investment journey, Etmam provides you with smart solutions and full support, contact us now to take the first step towards success.
Etmaam Company is the first in the Kingdom to implement all government procedures and electronic services within the Kingdom, safely and with quality. Contact Etmam now to learn more about establishing a foreign company
Call now on 0554799222
January 09, 2025
- بواسطة Sultan Al-Qahtani
