Company Registration in Saudi Arabia: Key Requirements & Process For 2025

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Expanding your business to Saudi Arabia is a lucrative opportunity, thanks to its rapidly growing economy and business-friendly reforms under Vision 2030. At Profound UAE, we simplify the process of company registration in Saudi Arabia, helping businesses establish a strong foundation in this thriving market.

Why Consider Business Registration in Saudi Arabia?

Saudi Arabia offers unparalleled advantages for foreign investors:

  • Strategic Location: Acts as a gateway to Africa, Asia, and Europe.
  • Economic Growth: Diversified sectors, including technology, healthcare, and tourism.
  • Vision 2030 Reforms: Greater opportunities for foreign investments, including 100% ownership in many sectors.

Whether you’re setting up a small enterprise or a multinational company, business registration in Saudi Arabia ensures access to one of the Middle East’s most dynamic markets.

Types of Companies for Business Registration in Saudi Arabia

Selecting the right type of entity is crucial for a successful company registration in Saudi Arabia. Common structures include:

  1. Limited Liability Company (LLC): A popular choice for foreign investors, offering flexibility and limited liability.
  2. Branch Office: Ideal for businesses seeking to establish a presence without forming a new legal entity.
  3. Joint Stock Company (JSC): Suitable for large-scale businesses and public offerings.
  4. Representative Office: For conducting research or liaising with local clients without engaging in commercial activities.

Key Requirements for Company Registration in Saudi Arabia

Before initiating the business registration process in Saudi Arabia, ensure compliance with the following requirements:

1. Investment License

  • Obtain approval from the Saudi Arabian General Investment Authority (SAGIA) for foreign investments.

2. Capital Requirements

  • A minimum capital of SAR 500,000 is mandatory for setting up a Limited Liability Company.

3. Legal Documentation

  • Draft and notarize the Articles of Association (AoA) and shareholder agreements.
  • Provide valid identification and details of directors and stakeholders.

4. Local Sponsorship

  • While some sectors permit 100% foreign ownership, others require a local sponsor holding at least 25% of shares.

5. Saudization Compliance

  • Fulfill Nitaqat quotas by employing a specific number of Saudi nationals.

Step-by-Step Process for Company Registration in Saudi Arabia

Step 1: Consult and Plan Your Business Structure

  • Discuss your goals with Profound UAE, and we’ll help you choose the ideal legal structure for your business registration in Saudi Arabia.

Step 2: SAGIA License Approval

  • Submit a business plan and other required documents to obtain an investment license.

Step 3: Reserve Your Company Name

  • Register your company name with the Ministry of Commerce and Investment (MOCI) to ensure uniqueness.

Step 4: Open a Bank Account

  • Deposit the required capital in a Saudi bank and obtain the necessary certificate.

Step 5: Complete Legal Documentation

  • Finalize the company’s Articles of Association and have them attested by relevant authorities.

Step 6: Apply for Commercial Registration (CR)

  • Obtain the CR certificate from MOCI, making your business legally recognized in Saudi Arabia.

Step 7: Tax Registration

  • Register your company with the General Authority of Zakat and Tax (GAZT) for VAT and corporate taxes.

Step 8: Saudization and Employee Sponsorship

  • Comply with Saudization policies and sponsor foreign employees where needed.

Get Started with Company Registration in Saudi Arabia Today

Establishing a business in Saudi Arabia offers immense opportunities, but the process can be complex without the right guidance. At Profound UAE, we provide end-to-end support, ensuring your company is set up efficiently and complies with all local regulations.

Contact us today to start your journey in the Kingdom and explore the vast business potential Saudi Arabia has to offer.

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