How foreigners can start a business in Saudi Arabia

RIYADH: Saudi Arabia is a land of opportunity with a dynamic business environment shaped by Vision 2030. The Ministry of Investment is the primary authority for investments in Saudi Arabia which facilitates investment licenses and information about them. The reforms made doing business in Saudi Arabia more convenient, and now 100% foreign ownership is allowed in certain sectors. Foreigners have to follow these steps to start a business in Saudi Arabia.

1. Obtain an investment license from the Ministry of Investment.
2. Register your business with the Ministry of Commerce, which requires additional documents such as articles of incorporation, investor contact details, and company bylaws.
3. Open a Saudi bank account, which is necessary to operate legally.
4. Register for Zakat and VAT, if your business reaches certain income thresholds.
5. Obtain business licenses and permits, depending on your industry.

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To be eligible to start a business in Saudi Arabia, you’ll need to meet minimum investment thresholds, operate in approved sectors, and submit a detailed business plan outlining your objectives and financial projections. Types of Business Entities: There are several types of business entities you can establish in Saudi Arabia, including: Limited Liability Company (LLC): Popular for its flexibility and 100% foreign ownership. Branch Office: An extension of an existing international company. Representative Office: Ideal for market research, not revenue-generating activities. Joint Ventures: Collaboration with local partners, especially in restricted sectors. Company Formation Process The documents required for company formation in Saudi Arabia include: – Audited financials for the last 1 year – Articles of Association – Copies of the shareholders’ passport – Proof of identity and proof of address of directors and shareholders – Approval from the Ministry of Saudi Arabia to start a business activity – Certified copy of the power of attorney