As part of the reforms launched in the wake of Vision 2030, Saudi Arabia has liberalised its rules and regulations relating to the formation of companies in the country by foreigners and locals.
The reforms have facilitated the formation of foreign companies in Saudi Arabia and extensively promoted foreign investment in Saudi Arabia. Among the significant reforms contributing to excellent foreign investment is allowing 100% foreign ownership of the companies without a local partner. It has permitted greater control of the company by the foreign investor.
The reforms have allowed foreign investors to choose different types of business entities/structures to start their companies in Saudi Arabia. Selecting the proper business structure for a company is vital. Though foreigners can choose from various business structures, the most common form of legal entity is a limited liability Company in Saudi Arabia that a single shareholder can register.
Documents required to set up a company in Saudi
The Foreign investor documents required for business setup in Saudi Arabia are below. These are also the MISA company registration requirements.
- Investment license from the Ministry of Investment of Saudi Arabia (MISA).
- Commercial bank account for depositing capital.
- ID proof and the address of directors and shareholders
- Passport copies of shareholders and directors
- Copy of trade name declaration
- Memorandum of Association: The Memorandum of Association (MOA) is a legal document outlining the essential details such as the company’s name, objectives, share capital, and management structure.
- Articles of Association: Articles of Association (AOA) are internal rules and documents that define a company’s purpose and operations. The AOA must include the company’s registered name and address, capital, The General Manager’s details and powers, and the MISA (Ministry of Investment of Saudi Arabia) license number.
- Prospectus: A prospectus is a legal document required for companies in Saudi Arabia to raise investment from the public. It provides all the essential information about the company when raising investment.
- Certification of Trading: To form a trading company in Saudi Arabia, you’ll need to obtain a business registration certificate from the Ministry of Commerce and Industry and a trade license from the Chamber of Commerce and Industry:
- Employment Agreement: A written employment contract signed by the employer and an expatriate employee is compulsory, specifying a fixed duration, usually two years.
- Non-Disclosure Agreement: A non-disclosure agreement, or a confidentiality agreement, is a binding legal document between two or more parties agreeing to maintain the confidentiality of sensitive information they possess.
- Operating Agreement: An operating agreement is a crucial document used by limited liability companies (LLCs) to outline the business’ financial and functional decisions, including rules, regulations and provisions. Once the limited liability company members sign the document, it acts as an official contract binding them to its terms.
- Investment license from the Ministry of Investment of Saudi Arabia (MISA).
- Commercial bank account for depositing capital.
It is helpful to avail yourself of the services of a professional agency to help you form a company in Saudi Arabia, which will guide you through the steps required in the process.
How does the Helpline Group help set up a business in Saudi Arabia?
Helpline Group brings over 25 years of expertise in company formation, offering a seamless, hassle-free experience for clients. Our seasoned professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency.
With more than 25 years of experience and 300+ qualified team members, the Helpline Group will aid you in the Business Registration Process in Saudi Arabia. Helpline Group, as a reliable partner, can help you establish your business in Saudi Arabia with all necessary documents, registrations, and approvals from the authorities of the Saudi Arabian government.
