Look at a Comprehensive Guideline on How to Register Company in Saudi Arabia
Saudi Arabia’s economy is the largest in the Middle East, with a GDP of US$782 billion in 2018. The country’s rich oil industry forms one-fifth of the world’s oil supply. A foreign investor with plans to register company in Saudi Arabia can benefit from other industries within the relatively wealthy nation.
Why Incorporate in Saudi Arabia
Despite the oil industry’s dominance, the Saudi government is aggressively trying to diversify its economy and stimulate growth through privatization. While modern ‘economic cites’ are in the pipeline, they’ll promote new developments outside the energy industry. Saudi Arabia’s strategic position at the center of major trade routes crossing three continents marks it as a foreign investment destination. The economic reforms and diversification are reasons why investors should register in Saudi Arabia. Its well-educated young population, modern infrastructure, and significant crude oil revenues give it an upper hand within the Gulf region.
Foreign investors can look into the Saudi stock exchange, banking sector, and telecommunication sectors, among others to invest in.
The Process of Registration
The procedure to register company in Saudi Arabia follows several elaborate steps. The establishment of the General Investment Authority made it easier for applicants to follow through with the registration process. Foreign applicants from countries that do not form part of the Gulf Cooperation Council Countries (GCC) must appoint a representative. Applicants can seek help from well-established business solution firms such as 3E Accounting and enjoy the following services.
- Business license renewal
- Legal and taxation services
- Accounting and Auditing Services
- Human resource services
- Company secretarial services
Applicants can begin by visiting their online web or make contact through their customer care lines.
Here are some of the steps on how to register company in Saudi Arabia.
Step 1: Company Name Approval and Reservation
The first step begins with the applicant applying for the company name with the Ministry of Commerce and Industry. The proposed name should be distinct and should not contravene Saudi Arabia’s Company’s Act before submission. The Ministry shall approve the appropriate name before making a reservation.
Step 2: Statutory Document Submission
The next step that follows after the name approval is the submission of the registration documents. The Company Act governing company registration requires applicants to submit the Articles of Association with the Ministry of Commerce. Once submitted, the Ministry of Commerce shall certify the statutory documents followed by document signing with the executive members in the notary public’s presence.
Saudi Arabia’s new system allows applicants to register through the Saudi Arabia General Investment Authority (SAGIA) website. The General Investment Authority then publishes the Articles of Association in the daily newspaper.
Step 3: Corporate Bank Account Opening
The laws governing the formation of a company require applicants to deposit capital in their bank account. This, therefore, means that any applicant must open a commercial bank account of their choice. Local and foreign applicants who plan to register company in Saudi Arabia must apply for a commercial registration (CR). The CR is a mandatory requirement by law to conduct any form of business. From the Chamber of Commerce, applicants can apply for a business license and certificate.
Step 4: Registration With the Chamber of Commerce
The Chamber of Commerce issues a Certificate of Membership alongside the Commercial Registration (CR) after the applicant registers with them.
Step 5: Tax Status Registration
The process of company registration will not be complete without the applicant registering for the tax status. Under the Department of Zakat and the Income Tax Department, the process of registration begins. Countries that form part of the Gulf Cooperation Council (GCC) countries follow the Islamic ideas of taxation.
Step 6: Registration With the Ministry of Labour
Every company should register with the Human Resource and Employment Law. Again, the Employment Law stipulates that an applicant who plans to register company in Saudi Arabia to register with the General Organization for Social Insurance (GOSI). This is a body that looks after the worker’s welfare.
Applicants can always consult 3E Accounting for further assistance regarding the company registration process.