Articles
Setting up a one person company in Saudi Arabia
Welcome to your comprehensive guide on establishing a one-person company in Saudi Arabia . With the tremendous economic transformations underway in the Kingdom of Saudi Arabia, aligned with Vision 2030, individual investment and the establishment of business entities have become easier and more flexible than ever before. A one-person company is one of the most prominent legal instruments enabling entrepreneurs and investors, both Saudi and foreign, to launch their projects with limited liability and complete control.
Establishing a sole proprietorship in Saudi Arabia is a strategic step towards building a professional and reliable entity. However, navigating the legal procedures, Ministry of Investment requirements, and various government regulations can be complex.
This is where "City Squares Company" comes in. We're not just service providers; we're your strategic partners every step of the way to establishing a one-person business in Saudi Arabia. This article is your gateway to exploring the entire process and understanding why we're the ideal choice for successfully completing this endeavor.
📈 What is a one-person company in Saudi Arabia?
When we talk about establishing a one-person company in Saudi Arabia, we are referring to a specific legal form: a limited liability company (LLC) owned by one person.
For a long time, the only viable option for sole proprietorships was the "sole proprietorship." However, a sole proprietorship has a fundamental drawback: there is no separation between the owner's and the business's financial liabilities. This means the owner is personally liable for all the business's debts and obligations, which may extend to their personal assets.
The new Companies Law came to change this concept, allowing the establishment of a one-person company in Saudi Arabia as a limited liability company.
Its most distinctive feature is:
Independent legal entity: The company has a legal personality independent of its owner.
Limited liability: The owner's (sole partner's) liability is limited to the capital they have contributed to the company. Their personal assets are protected from the company's debts.
Administrative flexibility: The owner is the manager and has full authority, unless he appoints another manager.
Establishing a one-person company in Saudi Arabia is the ideal solution for entrepreneurs who want professionalism, asset protection, and complete control.
🌟 Why choose to establish a one-person company in Saudi Arabia? (Advantages and benefits)
The move towards establishing a single-person company in Saudi Arabia is not just an administrative procedure, but an investment decision that carries with it many strategic advantages that far outweigh the traditional sole proprietorship model.
Risk protection (limited liability): As mentioned, this is the most important advantage. When you establish a sole proprietorship in Saudi Arabia as a limited liability company, you limit your potential losses to your capital in the company. This provides tremendous psychological and financial security.
Credibility and Professionalism (Brand Image): Dealing with a "company" (LLC) gives your business greater credibility in the market compared to a "corporation." Clients, suppliers, banks, and even government agencies prefer dealing with structured companies. Establishing a sole proprietorship in Saudi Arabia immediately elevates your project's standing.
Ease of financing and business expansion: Banks and investors consider limited liability companies (LLCs) more trustworthy for granting loans or investing in them. Their clear legal structure makes their financial evaluation easier.
Continuity and ease of ownership transfer: A company is a continuous entity that is not bound by the death of its owner (God forbid). Company shares can be easily inherited or sold, ensuring business continuity. This differs from a sole proprietorship, which ends upon the owner's death.
Complete control: Unlike companies that require multiple partners, establishing a one-person company in Saudi Arabia gives you 100% control over decisions, profits, and the company's strategic direction.
Clear organizational requirements: Although there are administrative requirements (such as submitting financial statements), these requirements impose a level of financial and administrative organization that benefits your business in the long run.
All these benefits make establishing a one-person company in Saudi Arabia the first choice for serious investors and ambitious entrepreneurs in the Kingdom.
📋 Conditions and procedures for establishing a sole proprietorship in Saudi Arabia
Establishing a sole proprietorship in Saudi Arabia has become smoother thanks to the digital transformation of government services, but it still requires attention to detail and a thorough understanding of the regulations. The process can be broken down into conditions and requirements, followed by procedural steps.
1. Basic requirements for establishing a sole proprietorship in Saudi Arabia
The conditions differ slightly between a Saudi citizen and a foreign investor:
For Saudi citizens:
The age must be at least 18 years.
Full legal capacity.
Having an active "Absher" account.
For foreign investors (Gulf or international):
Ministry of Investment (MISA) License: This is the most important and fundamental requirement. A foreign investor cannot establish a sole proprietorship in Saudi Arabia (whether a commercial or service company) without first obtaining a valid investment license from the Ministry of Investment.
Having a valid passport.
Submit financial statements for the last year of the parent company in his country (if available).
Some activities may require approvals from other parties.
2. Step-by-step procedures (overview)
Establishing a sole proprietorship in Saudi Arabia involves a series of interconnected digital steps:
Identifying the activity(s): The business activities that the company will carry out must be identified precisely according to the approved classification (ISIC).
Reserving a trade name: Choosing a name for the company and obtaining approval for it from the Ministry of Commerce.
Obtaining an investment license (for foreigners): This is the most important and requires expertise, and it is what “City Squares” specializes in to ensure that a one-person company is established in Saudi Arabia for foreigners with ease.
Preparing and drafting the articles of incorporation: Although it is a "one person" company, an articles of incorporation (or bylaws) must be drafted that state the name of the company, its purpose, its capital, its duration, and how it will be managed.
Documenting the articles of incorporation: The documentation is done electronically through the Ministry of Commerce platform or through a notary public.
Issuance of the Commercial Register (CR): After notarization, the fees are paid and the Commercial Register is officially issued.
Open a file with the Zakat, Tax and Customs Authority (ZATCA): to register for VAT and other tax obligations.
Registration with the General Organization for Social Insurance (GOSI): For the company owner and any future employees.
Registration on the "Qiwa" platform: To manage employee contracts and services related to the Ministry of Human Resources.
Opening a bank account for the company: depositing the capital (if in kind) and starting the company's financial transactions.
This process, while seemingly straightforward, involves intricate details. Any error in drafting the articles of incorporation or obtaining the necessary licenses can lead to significant delays. Therefore, engaging experts to ensure the successful establishment of a sole proprietorship in Saudi Arabia is the wisest course of action.
🚀 City Squares: Your first partner in establishing a one-person company in Saudi Arabia
Understanding procedures is one thing, but executing them efficiently and professionally is quite another. When considering establishing a sole proprietorship in Saudi Arabia, you don't just need a "transaction facilitator," but a strategic partner with legal, administrative, and governmental expertise to ensure a smooth launch for your business.
This is where City Squares Company stands out as a leading option.
We offer company formation services in Saudi Arabia, facilitating the issuance of Ministry of Investment licenses for Gulf and foreign companies, and providing commercial services within the Kingdom in both the public and private sectors. Sahat Al Madin Company specializes in providing consulting services for launching your business in Saudi Arabia, offering a range of services including market entry, acquisitions, business classification, and management of service and industrial projects.
When you choose "City Squares" to establish a one-person company in Saudi Arabia, you are not choosing a single service, but an integrated system:
With City Squares, we offer more than just one service; we provide a range of services that give you the confidence to embark on your projects. Our company has extensive experience and has provided establishment and project management services to leading brands both within the Kingdom and internationally. We guarantee the success of your project from its initial setup in Saudi Arabia until your projects and businesses are fully operational.
We take care of all the complex details for you, from setting up a one-person company in Saudi Arabia to integrated management:
We offer factory registration and licensing services with a specialized administrative team experienced in establishing companies in the Kingdom. Our team possesses extensive experience in government relations and public relations, as well as legal expertise in Saudi regulations and laws governing the establishment of foreign companies and investor services. We handle the issuance of articles of incorporation, company registration and exit procedures, amendments to articles of incorporation, transfer of company ownership, modification of company legal status, company mergers, and the registration of commercial agencies (franchises) for private, governmental, and international companies.
Our expertise is not limited to setting up a one-person company in Saudi Arabia, but extends to full logistical support:
We provide VIP services, review and follow-up in all government ministries, and complete all transactions for clients inside Saudi Arabia, and serve investors from outside Saudi Arabia, as the company serves them.
🌐 Our integrated services: From establishment to launch
Setting up a sole proprietorship in Saudi Arabia is just the beginning. At "City Squares," we believe in providing a comprehensive suite of services that ensures your continuity and growth. In addition to our extensive experience in establishing sole proprietorships in Saudi Arabia, we offer a complete range of services to support every aspect of your business:
Premium Residency Services: We help you obtain premium residency for you and your family, giving you the stability to build your business.
Company formation services in Saudi Arabia: Our core expertise includes all types of companies, including the formation of a single-person company in Saudi Arabia.
Factory establishment services in Saudi Arabia: Integrated procedures for obtaining industrial licenses and starting operations.
International Partnership Services: We help you build bridges of cooperation and establish strategic partnerships.
Environmental licensing services in Saudi Arabia: We guarantee that your project complies with all environmental requirements.
Registering contracting companies with Aramco: We qualify you to enter the list of suppliers to major companies in the Kingdom.
Our media center services: Building your media identity and managing your reputation.
VIP and delegation reception services: We offer high-level protocol services befitting your brand.
Trademark and agency registration: We protect your intellectual property and officially register your agencies.
Public Relations and Communication Services: We build your relationships with government and private entities.
Post-establishment services: We don't leave you after the registration is issued. We provide ongoing support to ensure smooth operations.
Schengen visa processing: We facilitate your travel around the world.
Industrial security services: We guarantee the application of the highest security standards in your facilities.
📞 Start your journey now: Explore our packages and get in touch with us
Are you ready to turn your idea into reality? Your first step towards establishing a sole proprietorship in Saudi Arabia starts with a single click. The team of experts at "City Squares" is ready to provide an initial consultation to understand your needs and design a service package tailored to your project.
Don't let complicated procedures delay your ambition.
🤝 About Us: City Squares Company (Your Success Partner)
Sahat Al Madina Company is a leading provider of a wide range of services, including public relations, government relations, corporate communications, international marketing, tourism, company formation services in Saudi Arabia, and commercial contracting in both the private and public sectors. The company has successfully partnered with some of the largest companies in the Gulf region, both in the private and public sectors, and offers project management, innovative consulting, and expertise in the professional establishment of various types of companies.
The company has a team with great professional and engineering capabilities to accomplish work and achievements inside and outside the Kingdom, specializing in vital areas such as corporate communication and public relations, consulting and marketing services, in addition to proving to the government and the private sector and providing solutions, logistics work, support work, government contracting, digital government, and the governance of the Kingdom of Saudi Arabia.
It relies on a team of highly experienced and qualified professionals with over fifteen years of experience. With branches in the Kingdom of Saudi Arabia, the Sultanate of Oman, and Bahrain, it serves as a source of expertise for the Gulf and Arab regions. Its staff comprises one hundred individuals dedicated to business support and achieving success in establishing and guiding companies in Saudi Arabia with utmost efficiency and in the shortest possible time. The company covers all its service requirements with integrity and transparency, coordinates and collaborates with international companies, exchanges expertise, and aspires to both international and domestic expansion.
Sahat Company has also gained a competitive edge, distinguishing itself from other companies by offering comprehensive and high-quality company formation services using the latest modern methods. It possesses extensive experience and a trained workforce to ensure successful company formation and achieve desired results. Customer satisfaction and service evaluation are among its top priorities.
📜 Chairman's Message: 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 through browsing the company profile. You will be able to learn about our history and our most prominent achievements, as well as view the latest services and smart solutions that we offer in the world of finance, economics and business.
The development of “City Squares Company” in recent years has been amazing. We were among the first companies to start providing services for establishing international companies in various countries around the world, and we faced significant logistical challenges, which we were able to overcome, until we reached the current form.
City Squares Company operates in line with the Kingdom’s Vision 2030 launched by the Saudi Crown Prince, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, may God protect him, the Oman Vision 2040 launched by His Majesty Sultan Haitham bin Tariq Al Said, may God protect him, the Abu Dhabi Vision 2030 under the patronage of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the State, may God protect him, and Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE, Prime Minister, Ruler of Dubai, and the Egypt Vision 2030 launched by President Abdel Fattah El-Sisi, may God protect him, as City Squares Company seeks to implement its work in accordance with the support and visions of Arab countries in the success of the Arab, African and global economy and investment.
The success achieved by “City Squares Business Services and Public Relations Company” on more than one level in its work, which has been organized since its establishment, testifies to it being a company that has achieved high credibility from its local, regional and international clients, and seeks to develop its strategic partnerships around the world in the field of economic business and corporate marketing communication to highlight the best performance and mental image between establishments and their audiences at the international and local levels.
“City Squares Company” has been able to implement hundreds of successful projects in various fields, which have contributed to the rise of many small and large companies at the Arab and international level in establishing their companies and presenting and preparing quick commercial deals between establishments in the public and private sectors, and providing them with all consultations, economic feasibility studies, administrative and industrial services, with VIP service and receiving delegations. It is also distinguished by the confidentiality of information in all services for all its clients.
Finally, I can only thank our clients and agents, whom we consider our partners in this success, and everyone who has placed their trust in us and relied on us through their cooperation with City Squares Company in managing and expanding their businesses. They are our true wealth and treasure, and I promise them that we will exert our utmost effort and knowledge to always remain worthy of this trust.”
Mohammed bin Rashid bin Adwan (Chairman of the Board)
🧭 Our compass: Our vision, mission, and values
Our success in establishing a one-person company in Saudi Arabia for our clients, and in all our other services, stems from our commitment to firm principles.
1. Our credibility
City Squares Company is proud to be a permanent member of the Saudi and Arab Chambers of Commerce, which play a vital role in promoting trade and investment relations between the Kingdom of Saudi Arabia and Arab and foreign countries. City Squares' services range from facilitating access to Saudi and Arab markets and preparing research for entrepreneurs and business reports to providing networking opportunities for investors and businesspeople, as well as visa services.
City Squares Company invites its distinguished clients to attend conferences and evenings held at the company’s headquarters and branches and outside, bringing together many businessmen, high-level government officials and representatives of major companies from the financial and business community, in order to build a broad network of relationships that helps them support their businesses and projects and achieve their goals of reaching globalization with all the services provided by the company.
2. Our message
To be partners in success in all Arab, African and global countries, linking public relations and corporate communication in the exchange of international experiences and services that flourish in the countries of the world and develop them through the exchange of business in the best performance of a global mental image. City Squares also aspires to have a presence in all countries of the world through the professional services it provides, such as the establishment of economic businesses, public relations and corporate communication services, marketing, media services, holding conferences and events, and many other local and international logistical services with all their services.
3. Our vision
Sahat Al-Mudun Company looks forward to expanding its relationships with governmental and private bodies inside and outside the Kingdom of Saudi Arabia and developing public relations and corporate communication in the governmental and private sectors in a way that serves the vision of the Kingdom of Saudi Arabia 2030, the vision of the Sultanate of Oman, the United Arab Emirates and the Arab Republic of Egypt 2030, and developing export and investment services inside and outside the Kingdom for mutual economic development. It seeks to apply and implement smart ideas to reach the global level with the highest quality and professionalism, and for (Sahat Company) to be the first in the Arab world and globally in providing distinguished services and providing high-quality solutions for businessmen in our Arab world, and adding new horizons for them in an open world that is not governed by borders.
4. Our values
(City Squares Company) establishes a permanent and solid partnership with its clients and gives them the highest priority. All the solutions and services it provides are based not only on meeting all their needs, but also on exceeding their expectations and achieving their business goals.
🌍 Our branches around the world: We are wherever you are
To provide the best support to our international and local clients, and to ensure a smooth setup of a sole proprietorship in Saudi Arabia, we are located in:
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
Q1: What is the fundamental difference between a sole proprietorship and a sole proprietorship?
A: The main difference is "liability." In a sole proprietorship, you are personally liable for the business's debts (with all your own funds). However, in establishing a sole proprietorship in Saudi Arabia (LLC), your liability is limited to the company's capital.
Q2: Can a resident or non-resident foreigner establish a one-person company in Saudi Arabia?
A: Yes, establishing a sole proprietorship in Saudi Arabia is available to foreigners. The essential requirement is obtaining an "investment license" from the Ministry of Investment (MISA) before proceeding with the Ministry of Commerce procedures. "Sahat Al Madina" specializes in obtaining these licenses efficiently.
Q3: How long does it take to establish a one-person company in Saudi Arabia?
A: The timeframe depends on several factors, including the owner's nationality, the type of business, and the readiness of the documents. For citizens, the process can be completed within days. For foreign investors, issuing an MISA license requires additional time. With "City Squares," we guarantee the fastest possible processing time thanks to our expertise in avoiding common errors and preparing comprehensive files.
Q4: What is the minimum capital required to establish a one-person company in Saudi Arabia?
A: Under the new system, the minimum capital requirement for a limited liability company has been eliminated for many activities (it was previously SAR 500,000 for some). However, the capital must be sufficient to achieve the company's objectives. Some specialized activities may still require a minimum capital. Our experts at City Squares will provide you with precise advice based on your specific business.
Q5: Why do I need a company like City Squares to complete the incorporation process?
A: Because establishing a sole proprietorship in Saudi Arabia, especially for a foreign investor, is not simply a matter of filling out forms. It requires a legal understanding of drafting the articles of incorporation, experience in dealing with the requirements of the Ministry of Investment, and connections to complete the various government procedures (commerce, zakat, insurance, manpower, municipality). We save you time and effort, and protect you from costly legal errors.
🔗 Additional services that might interest you (Go with confidence)
Once you've established your sole proprietorship in Saudi Arabia, the next stage begins. We're here to support you through it:
Don't wait any longer. The future in the Kingdom is promising, and establishing a sole proprietorship in Saudi Arabia is your gateway to this future.
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
Latest Posts
Ready to start your project? Request your service and begin your journey with us!
International Expert Mohammed bin Rashid bin Adwan