Articles
Establishing a sole proprietorship in Saudi Arabia
Today, Saudi Arabia is one of the most fertile and attractive investment environments in the world, thanks to Vision 2030, which has opened up vast opportunities for entrepreneurs and investors. Establishing a sole proprietorship in Saudi Arabia (or "sole proprietorship," as it is commonly known) is the initial and most flexible option for many aspiring entrepreneurs looking to begin their business journey.
Whether you are a citizen or a foreign investor looking to take advantage of the huge opportunities, the process of setting up a sole proprietorship in Saudi Arabia requires a thorough understanding of the legal and administrative procedures.
In this guide, we will take you step by step through the journey of establishing a sole proprietorship in Saudi Arabia, and we will show you how an expert partner like City Squares can turn this process from a procedural challenge into a successful and streamlined launch for your business.
Are you ready to start "establishing a sole proprietorship in Saudi Arabia"? Don't let the procedures hold you back. Contact us now via WhatsApp for an immediate and free consultation from "City Squares" experts.
📞 Click here to contact us directly via WhatsApp: +966505520303
🧭 What is "establishing a sole proprietorship in Saudi Arabia" (sole proprietorship)?
Before delving into the details, it's important to understand what we mean by "establishing a sole proprietorship in Saudi Arabia." A sole proprietorship is a legal entity owned and operated by one person (natural person), who is the sole owner of all the company's assets and personally and unlimitedly liable for all its debts and obligations.
Establishing a sole proprietorship in Saudi Arabia is the ideal option for:
Entrepreneurs who start on their own.
Freelancers (such as consultants and designers).
Traders who run small to medium-sized businesses.
✅ Why choose to establish a sole proprietorship in Saudi Arabia? (Advantages and benefits)
Establishing a sole proprietorship in Saudi Arabia offers several advantages that make it an ideal starting point:
Ease and simplicity of procedures: Compared to other companies (such as limited liability or joint-stock companies), the steps to establish a sole proprietorship in Saudi Arabia are the fastest and least complicated.
Full ownership: The owner has 100% full control over all decisions and profits.
Low costs: The fees for establishing a sole proprietorship in Saudi Arabia and issuing a commercial registration are considered low.
Administrative flexibility: There are no complex requirements for boards of directors or general assemblies.
Speed of launch: You can start your business in record time.
📋 Basic requirements and conditions for starting a "sole proprietorship in Saudi Arabia"
To begin the process of establishing a sole proprietorship in Saudi Arabia, a set of basic conditions must be met:
For Saudis:
The age must be at least 18 years.
Not to be a government employee (with some exceptions for certain activities).
Having an active "Absher" account.
For foreigners (investors):
This requires obtaining an investment license from the Ministry of Investment (MISA).
Having a valid residence permit (if a resident) or obtaining an investor visa.
Some activities may require a Saudi partner or special approvals.
Warning: The process of establishing a sole proprietorship in Saudi Arabia for a foreign investor requires experience in dealing with the requirements of the Ministry of Investment, and this is exactly what "City Squares" excels at.
📑 Steps to "Establishing a Sole Proprietorship in Saudi Arabia" (The Process in Detail)
The process of establishing a sole proprietorship in Saudi Arabia is typically done through government e-platforms such as the Saudi Business Center and the Qiwa platform. The basic steps are:
Defining the business activity: Choosing the activity (or activities) you wish to pursue.
Reserving a trade name: Choosing a name for the establishment and reserving it through the Ministry of Commerce.
Issuance of the Commercial Register: Submitting the application electronically to obtain the Commercial Register, which serves as the birth certificate of the establishment.
Open a file at the Ministry of Labor (Foreign Affairs): to register the establishment and manage employee affairs.
Registration with Social Security (GOSI): To guarantee the rights of employees (including the owner himself if he wishes).
Registration with the Zakat, Tax and Customs Authority (ZATCA): For Value Added Tax (VAT) and Zakat requirements.
Opening a business bank account: to manage the financial transactions of the organization.
National Address Registration (Wasel): To determine the official headquarters of the institution.
Although these steps appear electronic, any error in identifying the activity or fulfilling the requirements can lead to significant delays or rejection. This is where experts come in.
🌟 Why is "City Squares" your first partner in "establishing a sole proprietorship in Saudi Arabia"?
Setting up a sole proprietorship in Saudi Arabia is just the beginning. True success lies in proper establishment and the ability to grow. "Sahat Al Madinat" doesn't offer sole proprietorship setup services in Saudi Arabia as a one-off transaction, but as a strategic partnership.
At Sahat Al Madina Company, we specialize in providing company formation services in Saudi Arabia and facilitating the issuance of Ministry of Investment licenses for Gulf and foreign companies. We offer unparalleled business services within the Kingdom of Saudi Arabia, in both the public and private sectors.
With "City Squares", you don't get just one service, but an integrated system of expertise that gives you complete confidence in entering the Saudi markets.
Our experience in "establishing a sole proprietorship in Saudi Arabia" and beyond includes:
Initial consultations: We help you choose the most suitable legal entity (sole proprietorship, limited liability company, etc.) and identify activities appropriate to your objectives.
Facilitating Ministry of Investment (MISA) procedures: We have deep experience in expediting the issuance of investment licenses for foreigners wishing to establish a sole proprietorship in Saudi Arabia or any other entity.
Issuance of records and licenses: We complete all transactions related to the Ministry of Commerce, the municipality, and civil defense, including issuing records and factory licenses.
Specialized administrative staff: Our team has extensive experience in government relations and public relations, and has deep legal expertise in Saudi regulations and laws.
Advanced legal services:
Issuing and reviewing articles of incorporation.
Amendment of articles of incorporation (entry and exit of partners, transfer of ownership).
Amending the legal structure of companies (for example, converting a "sole proprietorship" into a limited liability company).
Corporate merger and acquisition services.
Specialized licenses:
Registration of commercial agencies (franchises) for private and governmental establishments and international companies.
Business classification and project management services for the service and industrial sectors.
Investor services:
We serve investors from outside Saudi Arabia and handle all their procedures.
VIP service, review and follow-up in all government ministries.
We have provided establishment and project management services to major brands inside and outside the Kingdom, and we are here to ensure the success of your project from the beginning of establishing a sole proprietorship in Saudi Arabia until the launch of your business.
🏢 About Us: City Squares Company - Experts in "Company Formation in Saudi Arabia"
City Squares Company is one of the leading companies in the Kingdom. Our role is not limited to establishing a sole proprietorship in Saudi Arabia, but extends to being partners in public relations, government relations, corporate communications, international marketing, tourism, and concluding commercial contracts in the private and governmental sectors.
The company has succeeded in contracting with the largest Gulf companies in the private and governmental sectors, managing projects and providing new consulting services, and in the field of manufacturing and professionalizing the establishment of companies of all kinds.
Why are we your first choice for "establishing a sole proprietorship in Saudi Arabia"?
Professional team: The company has a team with great professional and engineering capabilities to accomplish projects and achievements inside and outside the Kingdom.
Over 15 years of experience: We rely on experienced and efficient personnel with more than fifteen years of experience in vital fields.
Comprehensive coverage: We cover all the business requirements of our services with complete integrity and transparency.
International relations: The company is linked to international companies to exchange experiences and aspires to international and local expansion.
Excellence and Experience: “City Squares Company” has gained the advantage and distinction thanks to our complete experience and trained staff in establishing companies in Saudi Arabia, which ensures reaching the desired results and achieving the desired goals.
Customer satisfaction and service evaluation are among our business priorities.
"City squares" by the numbers:
+220 commercial and industrial companies that we have established and supported.
+1,320 clients and public relations worldwide.
🗣️ Word from the Chairman of the Board (International Expert Mohammed bin Rashid bin Adwan)
Dear members and clients of “City Squares Company” in the Kingdom of Saudi Arabia and its branches in the Sultanate of Oman, the United Arab Emirates and the Arab Republic of Egypt, I am pleased to welcome you.
The development of “City Squares Company” in recent years has been remarkable. We were among the first companies to offer services for establishing international companies in various countries around the world. City Squares Company operates in line with the Kingdom’s Vision 2030, Oman’s Vision 2040, Abu Dhabi’s Vision 2030, and Egypt’s Vision 2030. We strive to implement our work in accordance with the support and visions of Arab countries for the success of Arab, African, and global economic and investment, from establishing sole proprietorships in Saudi Arabia to mega-projects.
The success achieved by "City Squares Company" testifies to its high credibility. The company has been able to implement hundreds of successful projects in various fields, which have contributed to the rise of many companies, providing them with all consultations, economic feasibility studies, administrative and industrial services, VIP services and reception of delegations, with the distinction of maintaining confidentiality.
Finally, I thank our customers and agents, our partners in this success, for you are our true wealth and treasure."
🌐 Our integrated services: After "establishing a sole proprietorship in Saudi Arabia"
Establishing a sole proprietorship in Saudi Arabia is just the first step. "City Squares" offers a comprehensive suite of services to ensure the growth and sustainability of your business:
1. Business setup services (companies and factories)
Company formation services in Saudi Arabia: (including the formation of a sole proprietorship in Saudi Arabia, limited liability companies, branches of foreign companies).
Factory establishment services in Saudi Arabia: Full expertise in the requirements of "MODON" and industrial authorities.
Environmental licensing services in Saudi Arabia: Ensuring compliance with all environmental standards.
Industrial security services: Protecting your facilities and employees.
2. Investor and VIP Services
Premium Residence Services: For investors wishing to settle in the Kingdom.
VIP services and reception of delegations: Top-level logistical and protocol arrangements.
Obtaining Schengen visas: to facilitate your international business operations.
Buying property in France: Specialized international investment services.
3. Operational and legal support services
Post-establishment services: Everything you need to continue (license renewal, data update).
Trademark and commercial registration: Protecting your business identity.
International Partnership Services: Building bridges for your business with global partners.
Simultaneous interpretation for conferences and events: Multilingual in Saudi Arabia.
4. Public Relations and Marketing Services
Public Relations and Communication Services: Building your reputation and corporate communications.
Our media center services: To professionally manage your media image.
5. Specialized services
Registering contracting companies with Aramco: We help you pass the strict registration requirements.
Recruitment, recruitment and labor leasing services: We provide you with the necessary human resources.
🎯 Our vision, mission, and values: the foundation of our clients' success in establishing a sole proprietorship in Saudi Arabia
We do not operate haphazardly, but rather proceed from well-established principles that guarantee the success of the process of establishing a sole proprietorship in Saudi Arabia and all other services.
Our values: City Squares Company establishes a lasting and strong partnership with its clients, giving them the utmost priority. All the solutions and services we offer are designed not only to meet their needs but to exceed their expectations and help them achieve their goals.
Our mission: To be partners in success in all Arab, African and global countries, linking public relations and corporate communication in the exchange of international experiences.
Our vision: “Sahat Al-Mudun” looks forward to expanding its relationships with governmental and private bodies in a way that serves the Kingdom’s Vision 2030, and to be the first company in the Arab world and globally in providing distinguished services and providing high-quality solutions for businessmen.
🎖️ Our credibility: Trust that extends across the Kingdom and beyond
City Squares Company is proud to be a permanent member of the Saudi and Arab Chambers of Commerce, which plays an important role in promoting trade and investment relations.
Our services range from facilitating market entry in Saudi Arabia and conducting research to providing networking opportunities for investors and businesspeople. We invite our distinguished clients to conferences and events that bring together high-level officials to build a broad network of relationships that support their businesses—a vital resource after establishing a sole proprietorship in Saudi Arabia.
Our branches:
City squares in the Kingdom of Saudi Arabia (Headquarters)
City squares in Egypt
City squares in Amman
❓ Frequently asked questions about "Establishing a sole proprietorship in Saudi Arabia"
Q: What is the difference between a "sole proprietorship" and a "sole proprietorship"? A: In the Saudi context, the two terms are often used to refer to the same entity: a business owned by one person. "Sole proprietorship" is the more legally accurate term.
Q: How long does it take to "establish a sole proprietorship in Saudi Arabia"? A: With "City Squares", the initial steps can be completed and the commercial registration issued in record time (sometimes within one working day), but the total duration depends on the type of activity and obtaining additional licenses.
Q: As a foreigner, can I establish a sole proprietorship in Saudi Arabia? A: Yes, by obtaining an investment license from the Ministry of Investment (MISA). City Squares specializes in facilitating these procedures entirely.
Q: What is the cost of setting up a sole proprietorship in Saudi Arabia? A: The costs are divided into government fees (for commercial registration, Chamber of Commerce) and professional fees. Contact us for a transparent and detailed quote tailored to your needs.
📞 Start your journey now: Book your free consultation on "Establishing a sole proprietorship in Saudi Arabia"
Don't miss the opportunity to invest in one of the world's strongest economies. Establishing a sole proprietorship in Saudi Arabia is your gateway to a world of opportunities.
Let the experts at "City Squares" handle all the administrative and legal complexities for you.
To get started immediately or to inquire about any of our services, contact us directly:
✅ Click here to chat with a business setup consultant via WhatsApp
Other services that may interest you (provided by City Squares Company):
Establishing a company in Saudi Arabia for foreigners
Opening a foreign company branch in Saudi Arabia
Foreign investment license in Saudi Arabia
Opening a company branch in Saudi Arabia
Company formation services in Saudi Arabia
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International Expert Mohammed bin Rashid bin Adwan