In recent years, the Kingdom of Saudi Arabia (KSA) has emerged as a key destination for entrepreneurs. This is mainly due to a series of reforms and pro-business policies. All these initiatives have not only attracted global investors but also driven steady economic growth. According to the latest market insights, Saudi Arabia’s total revenue is projected to grow at a compound annual growth rate (CAGR) of 8.31 per cent between 2022 and 2029. It is expected to reach an estimated market volume of US$41.35 million by 2029.
Whether you are looking to set up a branch office, a representative office, or a joint stock company (JSC), understanding the process is key to launching a successful business in Saudi Arabia. Continue reading this blog to learn how to open a company in Saudi Arabia.
Back to topWhat are the Steps to Start a Business in Saudi Arabia?
To start a company in Saudi Arabia, you must follow a certain procedure, which is pre-determined by the government to ensure regulatory compliance. Below is a step-by-step guide to help you legally open a company in Saudi Arabia:
Step 1 - Choose a jurisdiction where you want to operate your business. You can either establish your company on the mainland or within one of the Special Economic Zones (SEZs) in Saudi Arabia. Each jurisdiction offers different advantages, such as tax benefits, government incentives, and robust infrastructure.
Step 2 - Select an appropriate legal structure for your company. You can partner with Commitbiz LLC experts, who have in-depth knowledge of the types of companies in Saudi Arabia. They will assess your business requirements and recommend the most suitable structure to ensure both legal compliance and operational efficiency.
Step 3 - In the next step, you are required to finalise the company. Note that this name should adhere to the KSA’s naming conventions. Commitbiz business setup consultants will then help you with the entire process of trade name registration in Saudi Arabia.
Step 4 - Gather all the necessary documents required to open a company in Saudi Arabia. You can hand over these documents to our team, as we specialise in organising and reviewing all required documentation for accuracy and completeness.
Step 5 - Our team will submit the provided documents along with the complete application to register your company. The team will also apply for a relevant Saudi Arabian business license with the Ministry of Investment (MISA).
Step 6 - After the authorities review your application, you will receive the Commercial Registration (CR) and MISA license in Saudi Arabia. This will allow you to operate your business and proceed with further formalities legally.
Step 7 - Finally, open a corporate bank account to facilitate your business setup in Saudi Arabia. We will guide you in choosing a suitable bank, preparing the required documents, and completing the account opening process smoothly.
Back to topDocuments Required for Opening a Company in Saudi Arabia
A crucial step for setting up a company in Saudi Arabia is preparing and submitting the required documentation. These documents are essential for company registration, licensing, and bank account opening. Some of these documents include:
- Passport and visa copies of all shareholders
- Trade name reservation certificate
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Copy of bank statements
- Business plan
How Can Commitbiz Help?
Commitbiz LLC has specialised in delivering tailored business solutions, ensuring legal compliance and smooth execution at every stage. Whether you are looking to start your branch in Saudi Arabia, set up a representative office, or want to know how to set up a JSC in Saudi, our experts provide end-to-end guidance. We handle documentation, licensing, and registrations with precision. Contact us today to open a company in Saudi Arabia.
Back to topWhat business structures can be used to open a company in Saudi Arabia?
Entrepreneurs can choose from several legal structures, including a Limited Liability Company (LLC), a Joint Stock Company (JSC), a branch office, or a sole proprietorship.
What types of licenses are available for companies in Saudi Arabia?
Companies can apply for commercial, industrial, professional, service, or entrepreneurial licenses based on their business activity.
What is the role of MISA in company formation?
MISA (formerly SAGIA) is the primary authority for issuing investment licenses to foreign companies. Without MISA approval, foreign investors cannot legally operate a business in Saudi Arabia.
Do I need a local sponsor or partner in Saudi Arabia?
No, a local sponsor is not mandatory for all businesses. However, certain sectors may require a local partner or agent.
What is the cost of opening a company in Saudi Arabia?
Costs can vary based on the business activity, legal structure, and location. Expect expenses for MISA licensing, commercial registration, notary fees, legal translations, and office lease agreements.
