Etmaam As a Business Service Company We make sure To Inform Our Clients That For every company established in Saudi Arabia, some conditions must be implemented and followed well, which are as follows
One of the most important things you must do is write a company incorporation contract that includes all the details and system of the company from terms, conditions, and data in a manner that suits the form of the company. This contract is registered in Arabic and can be translated into any other language after that. Any changes that may occur in this contract are recorded. The most important of these data are
1- The name of the company.
2- The company's main center and headquarters.
3- The goal and purpose of establishing this company.
4- The company's capital and the amount of its shares.
5- Company management.
6- The age of this company.
7- The company's fiscal year.
Choosing a company name
As it is very important to choose a company name in Arabic or any other language, this name may be the name of the company owner or the name of one of the shareholders or its distinctive name that denotes a service, taking into account that it is appropriate for commercial systems and does not resemble any other trade name.
The partner's or shareholder's share, depending on the type of company, may be either in cash or in kind, or both. His share may also be in exchange for work he does, but authority and influence must never interfere in these matters. You can also donate shares to a person in exchange for work he does that benefits and achieves the company's desired goals without causing any disruption to the company's system.
It must adhere to all the conditions included in the company establishment system in Saudi Arabia while adhering to some other conditions clarified by the foreign investment regulations. For the foreign investor to obtain a license to establish his company in Saudi Arabia, the following must be met:
1- The type of this investment must not be among the types of activities excluded from foreign investment.
2- The technical specifications of the product must be consistent with the Saudi specifications.
3- No final judgments or decisions have been issued against this investor due to material violations.
4- No financial judgments or commercial violations have been issued against him previously.
5- This investor must adhere to the controls, regulations, and commitments attached to the application form for this investment license.
6- This license achieves investment objectives aimed at the Saudi Ministry of Investment.
Legal and administrative steps to establish a company
Establishing a company in the Kingdom of Saudi Arabia requires following many legal and administrative procedures. These procedures depend on the type of company you wish to establish. I will explain the most important steps below.
Determine the type of company you wish to establish (limited liability company, joint stock company, general partnership, etc.) based on your business objectives and the number of partners.
Choose a unique trade name for your company. This name must be compatible with the Saudi investment regulations and regulations and not conflict with any other names. You can check the availability of the name through the website of the Saudi Ministry of Commerce.
The establishment contract is what explains the details of the company, such as the type of company, commercial activity, capital, partners' shares, etc., and is documented by a notary public.
Submit a request to register the company with the "Ministry of Commerce" through the electronic services portal. The establishment contract and the required documents must be attached, such as:
- A copy of the partners' national ID.
- A power of attorney if one of the partners is an agent.
- A copy of the activity license (if it requires a license).
Issuance of the commercial register
After accepting the application, the "Ministry of Commerce" issues the company's commercial register.
This register is the official document proving the establishment of the company and through which commercial activities can be started.
Opening a bank account
After obtaining the commercial register, the company needs to open a bank account in the company's name in one of the Saudi banks. This account will be the official means of financial transactions for the company.
The company must be registered with the "Zakat, Tax and Customs Authority" to obtain a Zakat and tax number. This registration includes:
- Value Added Tax (if the activity is subject to it).
- Income tax on foreign companies (if the company is affiliated with foreign investors).
In the event of employing Saudi or foreign employees, the company must be registered with the "General Organization for Social Insurance" (GOSI) to cover social insurance for employees.
Some commercial activities may require special licenses (such as health, food, or educational activities). These licenses must be obtained from the relevant authorities.
Issuing a Chamber of Commerce Certificate
You need to register with the local “Chamber of Commerce”. This registration allows you to obtain a chamber membership certificate that enables you to legally practice commercial activities.
If the company needs a physical location (such as an office or a store), permits must be obtained from the local “municipality” to use the property as a place of business.
A new company must register with the “Ministry of Human Resources and Social Development” if it plans to employ workers.
An official announcement of the establishment of the company must be published in the “Official Gazette” or local newspapers to inform the population of it.
You can start your actual work and operate your company legally in Saudi Arabia once all legal and administrative procedures are completed.
Etmaam Helps You To establish a company In Saudi Arabia
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October 13, 2024
- BY Ibrahim Elsiofy