HomeThriving in the Digital Desert: How to Start an IT Company in Saudi Arabia

Advantages of Launching an IT Company with 100% Ownership in Saudi Arabia 

• Full Control: Enjoy complete ownership and decision-making authority without the need for a local partner. 
• Enhanced Flexibility: Operate with greater flexibility in business strategies and operations. 
• Cost Efficiency: Save costs associated with profit-sharing agreements typical in joint ventures. 
• Market Access: Gain direct access to Saudi Arabia’s lucrative market without local ownership requirements. 
• Accelerated Setup: Expedite company formation with streamlined processes facilitated by SAGIA. 
• Business Independence: Maintain autonomy over business operations and growth initiatives. 
• Attractive Investment: Appeal to global investors seeking opportunities in a stable and burgeoning market. 
• Strategic Expansion: Strategically expand and diversify your business portfolio in the Middle East region. 
• Long-term Sustainability: Ensure sustainability and longevity by leveraging full ownership advantages in the dynamic Saudi market. 

Steps to Start an IT Company in Saudi Arabia 

Starting an IT company in Saudi Arabia is a structured yet rewarding process. This guide breaks down each phase, ensuring clarity and ease as you embark on this entrepreneurial journey. 

1. Establishing the Legal Entity

Legalization and Attestation of Documents: 

• • Begin by getting your documents legalized and attested. This step involves visiting the Saudi consulate or the relevant embassy of your country to authenticate all necessary paperwork. This verification is crucial for the legitimacy and acceptance of your business documents in Saudi Arabia. 

Business License Application: 

• • Apply for your business license through the Ministry of Investment Saudi Arabia (MISA), previously known as SAGIA. This license is your official gateway to operating in the Kingdom without a local partner. MISA offers streamlined and subsidized options, especially for entrepreneurs. 

Company Name Registration: 

• • Choose a unique name for your company and register it with MISA. This registration ensures your business name is legally recognized and protected, setting a strong foundation for your brand identity. 

Drafting Articles of Association (AoA): 

• • Prepare the Articles of Association (AoA), which outlines your company’s structure, purpose, and operational guidelines. This document is vital as it defines the governance of your company and is required for registration. 

Issuance of Commercial Registration (CR): 

• • Obtain your Commercial Registration (CR) from the Saudi Ministry of Commerce and Industry. The CR grants you permission to engage in specific business activities within the Kingdom, making it an essential document for legal operations. 

Chamber of Commerce Registration: 

• • Register with the local Chamber of Commerce and activate your online account. This registration not only provides credibility but also allows access to essential business services and networking opportunities within the Chamber’s community. 

2. Authorization to Hire Staff

Ministry of Labor Registration: 

• • Register your company with the Ministry of Labor to obtain the necessary permits for hiring staff. This registration is crucial for compliance with labor laws and for accessing the workforce in Saudi Arabia. 

General Organization for Social Insurance (GOSI): 

• • Create a file with the General Organization for Social Insurance (GOSI). This step ensures that your employees are covered under the social insurance scheme, which includes benefits such as healthcare and pensions. 

General Authority of Zakat and Tax (GAZT): 

• • Set up a file with the General Authority of Zakat and Tax (GAZT) for tax purposes. Proper registration with GAZT is essential for managing corporate taxes and adhering to the fiscal policies of Saudi Arabia. 

Office Address Registration: 

• • Secure and register a physical office address. Having a registered office is a regulatory requirement and provides a base for your company’s operations. This address is where official letters are sent and inspections are conducted. 

3. General Manager Requirements

Health Check and Insurance: 

• • The General Manager must undergo a health check and obtain health insurance. This step ensures that the GM meets health standards and is insured, which is a prerequisite for obtaining residency and work permits in Saudi Arabia. 

Documents Needed to Start an IT Company in Saudi Arabia 

• Legalized and Attested Documents: Includes passport copies, business plans, and financial statements, attested by the Saudi consulate or relevant embassy. 
• Business License Application: Submitted through the Ministry of Investment Saudi Arabia (MISA). 
• Company Name Registration Certificate: Provided by MISA after successful name registration. 
• Articles of Association (AoA): Detailed document outlining your company’s structure and operations. 
• Commercial Registration (CR): Issued by the Saudi Ministry of Commerce and Industry. 
• Chamber of Commerce Certificate: Registration certificate from the local Chamber of Commerce. 
• Ministry of Labor Registration: Confirmation of registration to hire staff. 
• General Organization for Social Insurance (GOSI) File: Documentation confirming employee social insurance. 
• General Authority of Zakat and Tax (GAZT) File: Tax registration documents. 
• Office Lease Agreement: Proof of a registered physical office address. 
• General Manager’s Health Check and Insurance Documents: Health and insurance certificates for the General Manager.