Saudi Arabia, with its positive business environment, advantageous economic and legal policies, strategic location, and excellent infrastructure, remains the perfect location for GCC nationals looking to start and operate businesses. There are lots of opportunities for GCC nationals to make their business empires in Saudi Arabia. It is important to dive into the scope, benefits, and procedures of starting a GCC national company with the help of an expert business setup company with well-developed experience and knowledge of the legal and regulatory framework of Saudi Arabia.
Why start a GCC national company in Saudi Arabia?
“With a thriving and dynamic economy and favorable government policies, Saudi Arabia has become the most ideal destination for GCC nationals. There are many benefits for GCC nationals to start a company in Saudi Arabia and owing 100% of it. The business framework of Saudi Arabia makes it easy for GCC nationals to have their business journey there with the same treatment and benefits as Saudi nationals. This special commercial right offers lots of opportunities for GCC businessmen to venture into different sectors of business in the Kingdom.”
Key Benefits of Starting a Business as a GCC National in Saudi Arabia
In Saudi Arabia, the whole business landscape is favorable for GCC nationals, which provides a smooth and advantageous process. Key benefits are listed below:
- Ease of Business Setup
In Saudi Arabia, GCC nationals have an easy and quick company formation process when compared to other nationalities. With a flexible regulatory framework and fast-track services, the Saudi government enables GCC nationals to have a quick and hassle-free business setup with minimal delays.
2. Freedom to Operate in Any Sector
Unlike foreign investors, GCC nationals can operate the business in any sector without any restrictions. It will give them complete freedom to enter a wide range of markets and industries, such as hospitality, technology, and manufacturing.
3. No MISA License Requirement
GCC nationals do not need to obtain a license from the Ministry of Investment Saudi Arabia (MISA),, which requires time and more documentation work. It makes the business set-up procedure easier.
4. Tax Advantages
One of the best reasons to establish business as a GCC national is favorable tax advantages. The Zakat rate for GCC nationals is a mere 2.5%, whereas other foreign investors are subjected to a 20% income tax combined with a social security payment charge. This tax advantage boosts the profit, which even enables them to reinvest in the business.
5. Flexible business structures
GCC nationals can choose any business structure, such as sole establishment, general partnership, limited liability company (LLC), or joint stock company, that suits their business goals.
Types of Companies GCC Nationals Can Register in Saudi Arabia
GCC nationals have complete freedom to choose any business structure that aligns with their business objectives without any restrictions. It enables them to take full advantage of each structure and make a profitable business journey.
- Limited Liability Company (LLC)
An LLC is the most popular business structure in Saudi Arabia. Its flexible management structure, minimal business risk, and flexible taxation make it perfect for making high-return business structures.
2. Branch of a GCC company
GCC nationals can easily operate their parent company in Saudi Arabia, which makes it an easy way to get into the dynamic Saudi business market.
3. Joint Stock Company (JSC)
If there are multiple shareholders, a joint stock company is the best option, where one gets part ownership.
4. Regional Headquarters
This structure is especially beneficial for multi-national corporations (MNCs) that are seeking to add efficiency along with a strong regional presence.
5. General Partnership Company
If there is a partner who is ready to share profit, losses, and liabilities, then go for a general partnership company.
Company Formation Process for GCC Nationals in Saudi Arabia
For GCC nationalities, it is easy to start a company in Saudi Arabia, unlike other nationalities. The following is the simplified process:
- Documentation
The first step is to get attestation for several important documents, such as identification documents, proof of residency, and legal documents, which are specifically needed for the type of business you want to start.
2. Get a trade name.
Reserve a unique brand name by following the rules and regulations of the Saudi government. As it will be used in all official documents and business licenses, it is important to check its availability.
3. Commercial Registration
Registration with the Ministry of Commerce is simple for GCC nationals, as they do not need an investment license from MISA. And this commercial registration is valid for one year and must be renewed.
4. Articles of Association
An Articles of Association (AOA) is a legal document that includes the company’s structure, management policies, and shareholder rights. It is important to be attested properly.
5. Rent a virtual office and register with a national address.
Whether your business model involves a land-based office or a virtual , a national address must be registered with Saudi Arabia. Having a virtual office space is the most cost-effective way to work remotely while still maintaining some physical presence in Saudi Arabia.
6. HRSD Registration
It is important to register with the Ministry of Human Resources and Social Development (HRSD) in order to get work visas for employees. This enlistment makes your workforce legal as per the labor laws, and it makes it simpler to get a visa.
7. GOSI Registration
It is mandatory to register with GOSI, and this step will assist you in managing your employees as well as their benefits, which they need to enjoy from your organization.
Why Choose Helpline Group for Your Company Formation Needs?
Helpline Group, with over 25 years of experience, knows the business landscape of Saudi Arabia. We provide end-to-end support for company registration and ensure every step is done properly.
As we know the changing legal and regulatory framework of Saudi Arabia, our experts give you guidance and advice in every step to get all the benefits of GCC nationals as per the Saudi regulatory system.
Reach out to us now! Get the benefits of being a GCC national.
Start your business journey in Saudi Arabia with the expert team at Helpline Group. Contact us today!
