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Representative office

Saudi Arabian legislation permits the creation of temporary company registrations and technical and scientific offices as representative offices. These offices provide technical support to manufacturers and can only offer advice, product support, and market analysis. They are typically established by pharmaceutical corporations and can only be founded with permission from SAGIA and the FDA for non-pharmaceutical businesses. These offices serve as crucial intermediaries, playing a pivotal role in facilitating international business relationships, fostering technological advancements, and promoting the growth of the pharmaceutical industry in Saudi Arabia, all while ensuring strict compliance with the regulatory requirements laid out by the relevant authorities. This legal framework encourages collaboration and the transfer of technical knowledge, contributing to the nation and economic development and industrial growth.

Representative office Saudi
What are the details about the necessary ownership and capital requirements for establishing a representative office?
  • Representative offices are extensions of a foreign parent company and do not have a separate legal identity.
  • They are registered with the relevant government department or agency and obtain the necessary licenses and permits to operate legally within the host country.
  • Capital requirements vary based on the jurisdiction but typically do not require a specific minimum investment. Representative offices are required to submit regular financial reports to local authorities and tax agencies.
  • Funding usually comes from the parent company, covering operational expenses and employee salaries. A bank account is opened in the host country to manage financial transactions and expenses.
  • Compliance with local tax laws and regulations is essential. Compliance with employment laws is also necessary. Office space and location are considered, and all necessary documentation is prepared and maintained.
What is the procedure for establishing a representative office in Saudi Arabia?
  • To establish a representative office in Saudi Arabia, conduct thorough market research and a feasibility study. Appoint a local agent to facilitate the registration process and act as a liaison with Saudi Arabian authorities.
  • Submit an application to the Saudi Arabian General Investment Authority (SAGIA) detailing your company’s activities and the proposed representative office.
  • Gather and notarize necessary documents, including company incorporation documents, a power of attorney for the local agent, and a letter of appointment for the representative office manager.
  • SAGIA will review the application and issue the necessary approvals. Obtain commercial registration from the Ministry of Commerce and Investment, register with the Chamber of Commerce, and obtain residency permits.
  • Open a bank account, comply with labour laws, and register for tax with the General Authority of Zakat and Tax.
  • Maintain compliance with local laws, regulations, and reporting requirements. Ensure timely renewal of licenses, permits, and registrations to continue operations legally in Saudi Arabia.

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Helpline Group is a premier business consulting agency in Saudi Arabia, specializing in providing representative office licenses. With a track record of excellence and a commitment to facilitating seamless market entry for international businesses, Helpline Group offers expert guidance and support, ensuring clients navigate regulatory complexities with ease. Trust us for your representative office licensing needs in Saudi Arabia.