How to Open a Company in Saudi Arabia (KSA): Expert Guide to Avoid Costly Mistakes

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Open a Company in Saudi Arabia

The Saudi Vision 2030 fosters dynamic and growth-driven opportunities for new sectors, welcoming foreign investment with progressive regulation and reforms. The Saudi Arabian General Investment Authority (SAGIA) business-friendly regulations offer foreign investors and entrepreneurs 100% foreign ownership and attractive incentives.

As a leading Emirati-owned business consulting firm with a presence in UAE and KSA, we’ll share our expertise on how you can open a business in Saudi Arabia, ensuring a smooth and transparent business setup experience.

Want to know more about how to setup a company in UAE or KSA?

Book a free consultation with our experts to discuss how we can assist in registering your company in UAE and Saudi remotely.

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Why Consider Opening Your Company in Saudi Arabia (KSA)?

Saudi Arabia is a leading economic force in the Middle East, with a GDP of about $2.582 trillion. KSA’s favorable business environment translates to that of many Western countries, thanks to its streamlined business setup processes and regulatory prioritizing ease of doing business.

Here are just a few reasons why Saudi Arabia could be an ideal location for your next venture:

  • Full ownership for foreign investors
  • No income tax and low corporate tax
  • A growing market with a youthful population
  • A very competitive market among G20 member states
  • A streamlined and hassle-free business incorporation procedure
  • A supportive business environment with many government incentives
  • Modern infrastructure with social-political stability

Choosing the Right Business Structure in Saudi Arabia

When starting a company in Saudi Arabia, choosing the most suitable business structure is vital. Saudi offers a variety of options, each with a different ownership structure, liability, and tax requirements.

  • Sole Proprietorship: Ideal for single owners, especially if you offer professional services.
  • Limited Liability Company (LLC): A popular choice for local and foreign investors, allowing 2-50 shareholders with liability limited to their invested capital.
  • General Partnership: Similar to an LLC, this structure requires at least two partners who share management responsibilities and liability for company debts.
  • Joint Stock Company (JSC): Suitable for large-scale companies seeking to raise capital through public offerings. JSCs can be private or public.

In addition to these core structures, Saudi Arabia allows for other legal structures, including  Branch or Representative Offices, Joint Stock Companies (JSC), and Corporations.

Choosing a Business License in Saudi Arabia

To setup a company in Saudi, you’ll need to deposit a minimum share capital depending on your chosen business activity. Two primary government entities oversee business licensing and legal regulations in Saudi Arabia:

  • Ministry of Investment Saudi Arabia (MISA)
  • Ministry of Commerce and Industry (MCI) (Previously known as the Ministry of Commerce and Investment)

The types of business licenses available in KSA include:

  • Commercial License ( Trading License)
  • Professional-Service License
  • Agricultural License
  • Industrial License
  • Mining License
  • Real Estate License
  • Printing and Publishing License
  • Scientific and Technical Office License
  • Transport License

Choosing the Right Fit:  Choosing the most suitable legal structure and business license in Saudi will depend on your business goals, ownership structure, business sector, and risk tolerance. Our experts are at your service to guide you in making an informed decision on choosing your best fit through a free and personalized consultation.

Steps to Open Your Company in Saudi Arabia

The procedures for starting a company in KSA are easy and can take just a few days to complete, provided you follow the guidelines carefully to avoid costly mistakes.

Here, we’ll give you a brief rundown of the precise steps and to have a personalized consultation based on your interest and any questions related to starting your own business in KSA, you can book a free consultation with our experts to discuss your requirements and get the best approach on your business journey in Saudi Arabia.

  1. Determine your business structure.
  2. Determine your business activity and choose a suitable license type.
  3. Choose a meaningful and unique trade name for your business.
  4. Compile all required documents.
  5. Apply with the Ministry of Investment (MISA)
  6. Get initial Approvals
  7. Draft Articles of Association (AoA)
  8. Obtain Commercial Registration (CR)
  9. Register with the Saudi Chamber of Commerce (CoC)
  10. Obtain a Physical Office and register its address with the government (Wasel).
  11. Apply for Visas and register with the Ministry of Labor (MLSD)
  12. Register with the General Authority of Zakat and Tax (GAZT) for tax compliance and General Organisation of Social Insurance (GOSI)
  13. Open a corporate bank account in Saudi Arabia.

Discover What We Offer and How We Can Assist You Open your Company in Saudi Arabia

With extensive experience and offices in the UAE and Saudi Arabian markets, Corporate Business Services (CBS) offers complete support to your business setup and operation in GCC, no matter where you are in your business journey.

Our processes are transparent and straightforward, ensuring a seamless experience. We assist you every step of the way, making informed decisions to enter the Saudi market securely.

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Office: Office #1601, 48 Burj Gate Tower, Downtown Dubai – UAE

Tel: +971 4 404 8787


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