At the heart of the major economic transformations taking place in the Kingdom of Saudi Arabia, and with the launch of the ambitious Vision 2030, the Kingdom has become a premier global investment destination. Opening its doors to both local and foreign investors, it offers a stimulating business environment, advanced regulations, and countless opportunities across various sectors. Deciding to establish a company in Saudi Arabia today is a strategic step toward growth and prosperity in a market experiencing unprecedented development.

With these significant opportunities come procedural and regulatory challenges that require a deep understanding of the local market and experience in dealing with government agencies. Whether you're an aspiring investor taking your first steps or an international company seeking to expand its business, establishing a company in Saudi Arabia requires careful planning and specialized support.

In this comprehensive guide, we'll cover everything you need to know about how to establish a company in Saudi Arabia , from understanding the different types of legal entities to step-by-step requirements and procedures, to how to take advantage of the comprehensive services offered by City Squares to facilitate your investment journey from start to success.

Why is now the best time to start a company in Saudi Arabia?

The Saudi economy continues to grow steadily, driven by economic reform programs and diversification away from oil. This growth creates a fertile environment for establishing a company in Saudi Arabia in promising sectors.

1. Vision 2030: The Engine of Growth and Development

Saudi Vision 2030 represents a roadmap for a prosperous future, focusing on diversifying sources of income and encouraging investment in non-oil sectors such as technology, tourism, entertainment, industry, and renewable energy. This vision creates tremendous opportunities for establishing a business in Saudi Arabia and taking advantage of megaprojects like NEOM and the Red Sea Project.

2. Ease of doing business:

The Saudi government has simplified procedures and facilitated company establishment and investment licenses to attract more foreign and local capital. This has been reflected in the Kingdom's improved ranking in global ease of doing business reports.

3. Large local market and high purchasing power:

Saudi Arabia boasts a huge domestic market of over 36 million people, with a high youth population and growing purchasing power, providing a large customer base for any company seeking to establish a business in the country .

4. Strategic geographical location:

The Kingdom enjoys a unique geographical location linking three continents (Asia, Africa, and Europe), making it a pivotal logistics and trade hub and an ideal platform for business expansion regionally and globally.

The basic steps to starting a company in Saudi Arabia: Your comprehensive guide

Establishing a company in Saudi Arabia requires adherence to a set of regulatory procedures to ensure smooth and legal operations. Here's an overview of the key steps:

Step 1: Determine the appropriate legal entity type

Choosing the legal form for your company is a crucial decision that affects legal responsibilities, capital requirements, and management structure. The most common types of company formation in Saudi Arabia include:

• Limited Liability Company (LLC): This is the most common form for both foreign and domestic investors, where partners' liability is limited to the amount of their capital contributions. It requires at least two partners (or one partner for a one-person LLC).

• Sole Proprietorship: Owned by one person, with unlimited liability. Suitable for small businesses.

• Joint Stock Company (JSC): Requires large capital and is suitable for large projects that require raising capital from a large number of investors.

• Professional firms: For services that require a professional license, such as law or accounting offices.

• Branch of a foreign company: Foreign companies are allowed to operate in the Kingdom without the need to establish a separate legal entity, but with some restrictions.

Step 2: Obtain an investment license from the Ministry of Investment (for foreign investors)

If you are a foreign investor seeking to establish a company in Saudi Arabia , the first step is to obtain an investment license from the Saudi Ministry of Investment (MISA). This step requires submitting a detailed business plan, demonstrating financial solvency, and meeting certain criteria related to economic activity.

Step 3: Reserve the trade name

A unique, previously unused trade name must be reserved through the Ministry of Commerce and Investment.

Step 4: Drafting the company's articles of association or bylaws

A memorandum of association (for limited liability companies) or articles of association (for joint-stock companies) must be prepared, detailing the partners, capital, activities, management, and profit and loss distribution. This memorandum must be notarized.

Step 5: Deposit capital

The company's required capital must be deposited in a bank account in a Saudi bank.

Step 6: Issuing the commercial register

After completing the previous steps, you must submit an application to the Ministry of Commerce and Investment to issue a commercial registration. This registration is your company's legal identity.

Step 7: Register with other government agencies

After obtaining a commercial registration, the company must register with several other government agencies, including:

• Ministry of Labor (Human Resources and Social Development): To obtain an establishment file and work permits.

• General Organization for Social Insurance: To register Saudi employees.

• General Directorate of Passports: To register foreign employees and issue residencies.

• General Authority of Zakat and Tax (GAZT): For tax registration (VAT, Income Tax).

• Chamber of Commerce and Industry: Register as a member of the Chamber of Commerce and Industry.

Step 8: Obtain professional and operational licenses (depending on the activity)

Some commercial activities may require additional licenses from specialized government agencies (such as the Food and Drug Administration, the Ministry of Health, the Ministry of Industry and Mineral Resources, etc.).

The process of setting up a company in Saudi Arabia can seem complex, but with the help of experts, it can be greatly simplified and accelerated.

City Squares: Your trusted partner for setting up a business in Saudi Arabia

Achieving your dream of starting a business in Saudi Arabia requires more than just a grasp of the procedures; it requires deep expertise in regulations, a strong network of relationships, and a thorough understanding of the business environment. This is where City Squares comes in as your strategic partner.

At City Squares, we offer company formation services in Saudi Arabia and facilitate the process of issuing Ministry of Investment licenses for Gulf and foreign companies. Our expertise is not limited to providing a single service; rather, we offer a comprehensive suite of business services within the Kingdom of Saudi Arabia, across both the public and private sectors.

Our comprehensive services for establishing a company in Saudi Arabia:

• Specialized Consulting: We provide detailed consultations to help you choose the best legal entity for your company, based on the nature of your business and your investment goals.

• Facilitating Ministry of Investment licenses: We help you prepare and submit all required documents to obtain a Ministry of Investment license efficiently and quickly.

• Issuing articles of association: We draft and issue articles of association, ensuring their compliance with all Saudi laws and regulations.

• Integrated Investor Services: We support investors throughout all stages of establishing a company in Saudi Arabia and beyond, including:

  • Entry and exit of companies.

  • Amendment of articles of association.

  • Transfer of company ownership.

  • Modify corporate entity.

  • Merger of companies.

  • Registering commercial agencies (franchises) for private and governmental establishments and international companies.

• Issuing records and factory licenses: We help you obtain all the records and licenses necessary to start operating your business, including factory licenses.

• Review and Follow-up: Our specialized team handles review and follow-up for all government ministries and completes all transactions, including VIP services.

• Serving investors from outside Saudi Arabia: We provide special support to international investors to ensure a smooth experience from the moment they enter the Saudi market.

With City Squares, we give you the confidence to embark on projects thanks to our extensive experience and expertise in providing project establishment and management services to major brands both inside and outside the Kingdom. We help ensure the success of your project from the very beginning of your company's establishment in Saudi Arabia until the launch of your projects and businesses.

To learn more about our expertise and who we are, please visit our page.Who we are.

Additional services to support your journey after establishing a company in Saudi Arabia

Our services are not limited to company establishment alone, but extend to include a range of vital services that ensure the continuity and success of your business in the Kingdom.

Premium Residency Services: Your Settlement and Investment in Saudi Arabia

For investors and businessmen looking for long-term stability, we offer specialized services to obtain premium residency. This makes it easier for you to run your business and provides you and your family with numerous benefits in the Kingdom. Explore the benefits of long-term settlement in the Kingdom. Learn more.Premium accommodation servicesthat we provide.

Registering Contracting Companies with Aramco: A Gateway to Major Projects

If your company is in the contracting sector, registering as an approved contractor with Saudi Aramco opens the door to major projects. We help you meet all requirements and present your application professionally. Open the door to opportunities with the world's largest companies. Learn about the procedures.Registering contracting companies with Aramco.

Industrial Security Services in Saudi Arabia: Protecting Your Assets and Employees

After establishing a company in Saudi Arabia , especially in the industrial sector, implementing industrial safety standards becomes vital. We offer integrated solutions to ensure your company complies with the highest industrial safety and security standards. Maintain a safe work environment. DiscoverIndustrial security services in Saudi Arabia.

VIP Services in Saudi Arabia: Business and Investment Luxury

For investors and senior executives, we offer tailored VIP service packages in Saudi Arabia that ensure a smooth and comfortable experience across all aspects of their stay and transactions. Elevate your experience in the Kingdom. Learn more.VIP Services in Saudi Arabia.

Buying Real Estate in France: Expanding Your International Investment Horizons

For our clients seeking to diversify their investments outside the Kingdom, we offer comprehensive consultations and services on purchasing real estate in France , as part of our efforts to provide global investment solutions. Explore real estate opportunities in Europe. Learn about our services inBuying property in France.

Why choose City Squares to help you set up a business in Saudi Arabia?

When it comes to starting a business in Saudi Arabia , choosing the right partner can make a huge difference between success and failure. At City Squares, we are committed to providing:

• In-depth experience: Years of working with investors from various nationalities and sectors have given us an unparalleled understanding of the complexities of the market and local regulations.

• Comprehensive Solutions: We offer an integrated approach that covers every aspect of establishing your company and beyond, eliminating the hassle of dealing with multiple entities.

• Speed ​​and Efficiency: Our team works hard to ensure your transactions are completed as quickly as possible, while adhering to the highest standards of accuracy and quality.

• Complete transparency: We believe in clarity at all stages of our work, and we provide you with clear information about procedures and costs.

• Specialized Team: Our team includes specialized administrative and legal personnel with extensive experience in government relations and Saudi laws.

Check outService packagesDesigned to meet your different needs.

Start your successful investment journey now

Deciding to establish a company in Saudi Arabia is a bold and fruitful step toward a promising future. Don't let complex procedures prevent you from achieving your ambitions. With City Squares, you have a reliable partner to facilitate this journey and achieve your goals.

We're here to make your company formation process in Saudi Arabia a smooth and successful experience, allowing you to focus on the core of your business and growing your investments.

Contact us today to start your free consultation and determine the next steps for starting a company in Saudi Arabia.

• For direct and quick communication, talk to us via WhatsApp: Contact us via WhatsApp

• To discover more about our company formation services: Visit our pageCompany formation services in Saudi Arabia.

With City Squares, your dream of starting a business in Saudi Arabia is closer than ever.