To achieve the goal of your UK company expanding to Saudi Arabia, you must conduct a thorough market research and obtain all the necessary licenses and registrations (including MISA registrations). With the liberalization of rules and regulations in the wake of the Vision 2030 initiative of Saudi Arabia, the country is a top destination for foreign investment. The country’s strategic location, access to large markets in the Middle East, Africa, and Asia, and a tech-savvy young population have endeared the Kingdom to investors worldwide and infrastructure.
You must also choose an appropriate business structure, like a limited liability company or a branch office, and comply with local regulations and standards for setting up and expanding your business to Saudi Arabia.
With Saudi Arabia permitting 100% foreign ownership, you can have complete control of your business, complying with other rules and regulations of the country.
Conditions for Doing Business in Saudi Arabia for UK companies
- UK companies expanding to Saudi Arabia must exist for at least one year with positive audited financials.
- UK companies must be present in at least three countries or jurisdictions to engage in trading activities in the Kingdom with 100% foreign ownership.
- Paid-up capital will vary depending on the business activity and legal structure.
- Paid-up capital must be deposited to a local Saudi bank account after the entity’s registration with the authorities.
Starting a Business in Saudi Arabia from the UK
The detailed steps for starting a business in Saudi Arabia from the UK are as explained below:
- Market Research and Planning: Conducting a thorough market research and outlining the basics of setting up a business to expand it is quintessential. With proper market research and a well-developed layout of the business objectives are necessary to expand your business.
- Assess the opportunities: Comprehensive research of the Saudi market can be done to understand the demand for your products or services and to identify potential competitors apart from assessing market trends.
- Develop a business plan: Developing a comprehensive business plan that aligns with Saudi Arabia’s economic goals and local needs is essential. The plan should be developed to ensure the growth of your UK business in Saudi Arabia.
- Financial planning: You should develop a detailed budget for your UK company’s expansion to Saudi Arabia.
- Legal and regulatory Framework: You must obtain several licenses, permits, or sanctions to operate your business in Saudi Arabia.
- MISA Investment License Registration: Foreign investors must register with the Ministry of Investment, Saudi Arabia (MISA) and obtain an investment license if needed to operate their business legally in Saudi Arabia.
- Choose the Company Structure: Options for different structures are available when starting your company. This includes a Limited Liability Company, a branch office, or a joint venture. Choose an appropriate business structure to enable you to achieve your business goals.
- Trade name reservation: Reserve a company name as you desire.
- Articles of Association: Draft and Notarize Articles of Association for your company.
- Commercial Registration: It is necessary to obtain a commercial registration certificate from the Saudi Ministry of Commerce after securing the MISA license.
- Chamber of commerce: Register with the Chamber of Commerce
- Register with Government Departments for Taxation, Insurance, and Hiring employees. These include General Organization of Social Insurance(Gosi), Zakat, Tax and Customs Authority (ZATCA )
- Register with Absher, Muqeem, Qiwa, and Mudad authorities.
- Register your office address with Government authorities.
- Open a Corporate Bank Account.
- Obtain General Manager Iqama and employee visas.
Hiring business setup consultants in Saudi Arabia, such as Helpline Group, is advisable when expanding your UK business to Saudi Arabia.
Role of Helpline Group in Saudi Arabia
Helpline Group, backed by a strong and experienced team, brings over 25 years of expertise in company formation, offering a seamless, hassle-free experience for clients, including foreigners. Our seasoned professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency.
With a global presence and a tailored approach, we ensure that your business expansion from the UK or UAE to Saudi Arabia is handled with precision and professionalism — making us your reliable ally in achieving success.
