What to consider when registering a Saudi Arabian company?

Investing in a Saudi Arabian company requires investors to be well prepared and considered in a number of ways. From the early policy research and company planning, to the document preparation and process compliance in the registration process, to the compliance management and cultural adaptation in the follow-up operation, every link is very important. Only by taking every note carefully can we smoothly carry out business and achieve the development goals of enterprises in Saudi Arabia, a market full of opportunities.

Saudi Arabia Company Registration Considerations

1, foreign investment policy breakthrough opening up.

100 per cent wholly owned

the new investment law formally abolished the foreign investment licensing system and allowed foreign investors to establish 100 percent wholly-owned companies in most industries (except for sensitive areas such as military, security, and Mecca/Medina real estate).

equal treatment guarantee

foreign investors enjoy the same legal protection as Saudi investors, including property rights, intellectual property rights and the right to free transfer of funds.

2, tax policy double preferential.

Regional Headquarters Plan

the regional headquarters of multinational companies are exempt from corporate income tax for 30 years. The special economic zone policy is to settle in the King Abdullah Economic City and other special zone enterprises, and the preferential tax rate of 5% (up to 20 years) is applied, which is far lower than the standard 20% income tax rate.

3, digital governance to improve efficiency

the newly established "Investment Service Center" integration process enables online operation of visa management and social security payment through government portals such as Absher, Muqeem and Qiwa, significantly reducing the approval cycle.

Saudi Arabia Company Registration Core Process and Requirements

1. Preparation before registration

document notarization and certification: the business license and articles of association of the parent company shall be notarized by the Chinese notary office → certified by the Ministry of Foreign Affairs → signed by the Saudi Embassy in China (it can be simplified to Hague certification after the Hague Convention comes into effect in 2023).

Business plan: market analysis, financial forecast (profit and loss statement for the first 3 years), localization employment plan (to meet the requirements of "desertification rate").

Industry-specific requirements: The manufacturing industry needs to attach an environmental impact assessment report (EIA), certified by the Saudi Meteorological and Environmental Protection Agency (PME).

2. Registration Process

name approval and account registration: login MISA official website to create an account, fill in the basic information of the enterprise, submit notarized documents, business plan, address certificate (lease contract must be filed by the municipal department).

Fee Payment: Pay the registration fee online.

Approval process: MISA preliminary examination (1-2 weeks) → Ministry of Commerce verification (1 week) → Chamber of Commerce and Industry (TCCI) final examination (1 week) → issuance of business registration certificate (CR).

3. Follow-up compliance

tax Registration: Register for value-added tax (VAT, 15% tax rate) through the ZATCA portal and submit bank account information.

Social Security Registration: Pay social insurance for employees on the GOSI platform.

Industry license: Manufacturing industry needs to apply for industrial license (MODON), and financial industry needs SAMA approval.

Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!