Establishment of foreign companies 100%
Enabling foreign investors to own fully in Saudi Arabia
In the light of economic developments and the Kingdom’s Vision 2030, the establishment of a company with full foreign ownership has become possible for international investors wishing to enter the promising Saudi market. However, foreign investors may face significant challenges in understanding domestic legal systems and procedures. Here comes ” Al-Safadi Business Services ” to provide the perfect solution.
How to Set Up a Foreign Company in Saudi Arabia
Saudi Arabia, with its rapidly growing economy and strategic location, is an attractive destination for foreign investors. The government’s efforts to diversify the economy away from oil, aligned with the Saudi Vision 2030, have made it easier for foreign companies to establish themselves in the Kingdom.
Key Benefits of Investing in Saudi Arabia
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Types of Foreign Company Structures in Saudi Arabia
Foreign companies have two main options:
100% Foreign-Owned Subsidiary
Partnership with a Saudi National
Requirements for 100% Foreign Ownership
Documentation for Company Setup
Commercial Registration & Articles of Association
Resolution for Subsidiary
General Manager's Documents
Foreign Company Audit Report
Language Requirement
License Types for Foreign Investors
There are eight main license types for foreign company registration:
Services Investment License
For activities like construction, maintenance, recycling, software development, etc.
Industrial Investment
License
For light and heavy industrial activities.
Professional Investment
License
For consultancies, IT services, translation, etc.
Trading Investment
License
For wholesale, retail, and online sales.
Economic and Technical Liaison Offices
For representation before government and trade bodies.
Agricultural Investment License
For activities like farming, beekeeping, and animal breeding.
Scientific / Technical Investment License
For pharmaceutical-related activities.
Real Estate Investment License
For real estate development, management, and leasing.
External Approvals for Saudi Company Registration
Some business activities may require external approvals from third-party governmental authorities. This is especially important for sectors like education, health, and transport. Common external approvals include:
- No Objection Certificates (NOC)
- Approval Letters from regulatory bodies.
Key Government Authorities
Depending on your business activity, you may need approval from one or more of the following:
- Ministry of Health
- Ministry of Commerce and Industry
- Technical and Vocational Training Corporation
- Ministry of Environment, Water, and Agriculture
- Ministry of Education
- General Authority for Audiovisual Media
- Transport General Authority
- Saudi Food and Drug Authority (SFDA)
- Ministry of Municipal Rural Affairs and Housing
- Ministry of Tourism
- General Entertainment Authority
- Saudi Energy Center
Conclusion
These supervising authorities ensure that businesses comply with local regulations and meet industry standards. Depending on your business activity, securing approvals from relevant authorities may be a necessary step before the company can be fully operational.
By navigating these processes carefully, foreign companies can successfully set up in Saudi Arabia and take advantage of the country’s growing economy and favorable business environment.
We are streamlining all steps related to establishing your foreign company 100%, from applying to receiving final licenses. We guarantee you full compliance with all local laws and regulations, as well as providing detailed guidance on the best legal structures that suit your business in the Kingdom.
Besides, we will provide you with a detailed market analysis and provide legal and tax advice to ensure your company’s success in the Kingdom. Whether you are seeking to enter the trade market, industry, or any other sector, we are here to make the process free of complexity and under the supervision of our specialized legal team.