The Kingdom of Saudi Arabia (KSA), is an Arab sovereign state in Western Asia constituting the bulk of the Arabian Peninsula and is the fifth largest state in Asia and second largest state in the Arab world.
The country shares borders with Jordan and Iraq to the north, Kuwait to the northeast, Qatar, Bahrain and the United Arab Emirates to the east, Oman to the southeast and Yemen to the south.
The below content explains some of the main requirements for company formation in Saudi Arabia.
Company Incorporation in Saudi Arabia
Doing Business Introduction
The Country is the Middle East’s biggest economy. KSA Government has established the Saudi Arabian General Investment Authority (SAGIA) to assist foreign investors in the approval process for operating in KSA and facilitating all services under one umbrella.
As per Doing business report of The World Bank, Saudi Arabia ranks 94 for 2017 survey.
LLC’s are a popular corporate vehicle among foreign investors in KSA. Foreign companies that intend to establish a Saudi LLC as a 100% subsidiary usually arrange for a minority stake to be held by a dependent company or by an individual of their choice.
Synergy are able to assist with any type of company formation, trademark registration and other recurring services for your business in the Kingdom of Saudi Arabia.
Incorporation – Business Entities
There are several types of entities that can be incorporated in Saudi Arabia are as mentioned below:
- General Partnerships
- Limited partnerships
- Joint Ventures
- Partnerships Limited by Shares
- Limited Liability Partnerships (LLCs)
- Variable Capital Companies
- Cooperative Companies (Joint Stock Company)
- Limited partnerships
Benefits of Company Registration
Below are the advantages of company formation in Saudi Arabia:
- Lower taxes
- Prolonged political stability
- Strategic geographic location
- Stable interest rates
- Currency pegged to the USD
- Lower capital requirements
- No limits on repatriation of capital
- Investors can sponsor foreign employees
- 100% foreign ownership of property and companies in certain industries
- Tax incentives for companies in certain economic cities
- Substantial business opportunities stemming from a population with relatively high-income levels
|KSA law, foreigners||Can Own 49%|
|Minimum Share Capital||SR 500,000|
|MOA and AOA||Required|
|Expatriate staff||Can Be Hired|
|Timeframe for Bank Account||1 week|
|Timeframe for Incorporation||3-4 weeks|
|Access to KSA double tax treaties||Yes|