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How foreigners can set up a business in Saudi Arabia

Business in Saudi Arabia

Seeking a dynamic and varied setting to start your business? Saudi Arabia offers exactly that. With a booming economy valued at $700 billion, it represents nearly a quarter of the economic activity in the MENA region.

This bustling market hosts a wide range of industries, including manufacturing, agriculture, pharmaceuticals, and services. With proper support, establishing a presence in any of these sectors is straightforward, whether you’re a GCC citizen or an international entrepreneur.

Advantages of Doing Business in Saudi Arabia

Starting a business in Saudi Arabia offers numerous economic and social benefits. The country boasts one of the world’s lowest crime rates and high standards of healthcare and education. Foreign entrepreneurs benefit from minimal income and sales tax liabilities and a robust support network, especially for non-oil industries. Saudi Arabia’s ease of doing business has also improved significantly, with the country outranking Qatar, India, and Luxembourg in the World Bank Doing Business Index.

Steps for Foreigners to Start a Business in Saudi Arabia

Step 1: Choose Your Industry and Business Structure

Identify the industry and specific activities for your business. This choice will determine whether you should set up in mainland Saudi Arabia or a free economic zone and the type of license and legal entity needed.

Step 2: Secure Business Premises

From 2023, Saudi Arabia requires foreign companies to have a regional headquarters in the country. You’ll need to lease business premises or work with a local service agent if establishing a branch company. For new companies, options include mainland premises or a license package in a free economic zone.

Step 3: Obtain an Investment License

Foreign entrepreneurs need an investment license from the Saudi Arabia General Investment Authority (SAGIA). This license allows you to invest, establish a new company, or set up a foreign branch. You’ll also need a commercial registration certificate from the Ministry of Commerce and Investment.

Step 4: Gather Additional Documentation

Additional documents from the Ministry of Commerce are required. These include the Memorandum of Association, Issuance of Commercial Registration, proof of ID and address for directors and shareholders, passport copies, trade name confirmation, Articles of Association, and a bank reference letter. A business visa is also necessary.

Why with Firmz Business Setup?

Firmz Business Setup provides a distinct advantage in obtaining offshore business license. With expertise in UAE business regulations, personalized solutions, and a comprehensive service range, Firmz Business Setup ensures a smoother and cost-effective license acquisition process. The team’s commitment to ongoing assistance contributes to the success of your business setup journey in Dubai.

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