Company Formation Services in Saudi Arabia
How do you start or form a company in a foreign country? Learn various steps and requirements involved with company formation in the Kingdom of Saudi Arabia.
- Choose the best company structure based on your requirements in Saudi Arabia
- Set-up the business in your country of choice, as per your requirements in Saudi Arabia
- Get your paperwork and documentation filled professionally with ease in Saudi Arabia
- Manage taxation and licensing requirements in Saudi Arabia through Helpline Group’s dedicated legal compliance mechanism
Learn how to proceed with business interests and investments in Saudi Arabia by forming a business or a company of your choice.
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While it is possible for foreign companies to establish their business operations in Saudi Arabia, lack of proper information and guidelines can affect your business progress and goals. Setting up a business in Saudi Arabia has complex requirements and conditions. Using professional agencies like Helpline Group to assist you with company formation goals can be of great help to overcome these issues and challenges in setting up your business in Saudi Arabia. As of now, Saudi Arabia invites investments from all nationals and have very liberal rules concerning investments in the country. However, rules and regulations concerning business activities in the country change from time to time. One must pay attention to their needs, goals, ownership conditions and controlling requirements while determining the most suitable form of business structure in Saudi Arabia.
Helpline Group is an ISO 9001-2008 Certified Government Approved Agency
Established in 1998, Helpline Group has achieved widespread presence across the world in the past ~25 years. With its head office located in Dubai, we serve our customers from across the world through out global offices and partner networks.
Company Formation in Saudi Arabia
The foreign investment policy followed by the Saudi Government is regulated by the Foreign Investment Regulations (April 2000). A foreign capital investment license is mandatory for any company in the Kingdom of Saudi Arabia with foreign shareholders. Licensed companies in the country an enjoy all benefits and incentives offered to Saudi Owned companies, including freehold of properties.
There is also an anti-double taxation policy based followed by the country that prohibits expropriation or confiscation of investments, and rights to repatriate profits and so on. While registering a company in Saudi Arabia can be a tough goal, Helpline Group can assist you in setting up your business in the county and obtain all necessary licenses and registrations as per the existing corporate laws.
Assurance on Reliability and Quality
Helpline Group's primary motto is to ensure quality and reliability while ensuring the highest customer satisfaction possible so that our customers become our evangelists. You, as a client, can be assured that your company formation processes are in good hands, and your business will be up and running in no time, adhering to the legal and regulatory requirements of the country.
Legal Structures of the Company
The Kingdom of Saudi Arabia has established a specific set of rules regarding the type of companies foreigners may set-up in Saudi Arabia. There are different regulations and requirements associated with setting up and running each of these companies in Saudi Arabia. Helpline Group can work with you in determining the most suitable form of business for your business requirements and help you establish additional requirements as per your needs and goals in Saudi Arabia. The following type of companies in the Kingdom of Saudi Arabia accepts foreign investment.
- General Partnership & Limited Partnership Company
- Partnership Limited by Shares
- Limited Liability Company & Cooperative Company
- Variable Capital Company
- Joint Stock Company
- Cooperative Company
General Partnership & Limited Partnership Company
A General Partnership & Limited Partnership Company in Saudi Arabia is also known as a group of company, which require more than two partners. The legal liability and existence of such general partnership companies should be carefully examined before making a decision. On the other hand, a limited partnership company must consist of at least one general partner and a limited partner where the liability of the general partner is unlimited and can also extent towards his personal wealth.
Partnership Limited by Shares
A Partnership Limited by Shares company requires at least one general partner and at least four limited parters. Once again, the liability of the general partner is untied, but limited partners’ interest and liability is limited to the contributions they made towards investments in the business.
Limited Share Partnership Company in Saudi Arabia
A limited liability company (or LLC) is a business entity or organisation formed with at least two persons. The liability of the partners in such a business is very limited, and mostly covering up to the investments they made to the business or the contributed capital to the business. However, such structures are not promoted in banking and insurance industries in Saudi Arabia. While the requirements for forming an LLC may change according to the business goals, it is best understood and analysed by an industry experts to analyse whether such benefits are available for a business in a specific sector or region before making a business move in Saudi Arabia.
Variable Capital Company
The foundations of a viable capital company are that such conies can increase d decrease their overall capital invested in the business. Such investment variables and conditions are mentioned and determined by the Memorandum of Association set during the formation of the business. In addition to this, the business shall also have the provision of adding or removing investors in the business or adding or reducing capital contributions through special actions. Speak to Helpline Group today to know more about variable capital companies in Saudi Arabia.
Joint Stock Company
A joint stock company or a corporation in Saudi Arabia has mandatory requirements for at least five or more investors. These partners are responsible for the strategic management and financial obligations of the company and their investment in the business. In Saudi Arabia, the integration of such joint stock companies is only possible through the acceptance of the Reverend of Industry or upon the issuance of a Royal Decree.
Cooperative Company
It is possible in Saudi Arabia for a Limited Liability Company or a Joint Stock Company to be integrated as a cooperative company. In most cases, such integrations happen for achieving cost reductions, or pursuing specific goals of the participants, including low price operation in certain industries or markets, or achieving quality improvements etc. However, investment in such cooperative companies must be separated into stocks of equivalent values per share in such cases.
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Other Factors You Should Consider for Bahrain Business Formation
Legal Setup
The Government Tender and Procurement Law control Government tenders and procurement in the Kingdom of Saudi Arabia. When it comes to legal set-up in the Kingdom of Saudi Arabia, there are various requirements. For example, there are strict rules and regulations concerning how companies can engage in Government Tender policies and procurement activities in the Kingdom of Saudi Arabia. Similarly, there are also regulations concerning the listing of businesses, market conduct, corporate governance, investment conditions, real estate investment and brokerage, merger and acquisitions, anti-money laundering and so on. One must be familiar with these regulations while setting up and running the business. Please consult Helpline Group for more information on how your business may be affected at Saudi Arabia.
Taxation
Saudi Arabia has various royal decrees concerning taxation in the country. The income tax rate in the country is 20%. Similarly, the NGIT in the country can range from a minimum of 30% and can go up to a maximum of 85% of the internal rate of return. Similarly, there are mandatory requirements for Zakat in the country. Once again, the rate of Zakat tends to change depending on company related factors.
In addition to this, Saudi Arabia also has a withholding tax, which is usually paid towards the activities conducted in the Kingdom, by a non-resident of the Kingdom of Saudi Arabia. These are categorised into rents (5%), royalties (15%), management fees (20%), air tickets (5%) etc. Once again, there are different conditions and requirements. Hence, it is better for you to approach professional agencies like Helpline Group for any clarifications on the requirements, it benefits and risks etc.
