100% Foreign-Owned Company Setup
Full foreign ownership under a MISA licence — we handle everything from the licence to commercial registration.
- Free first consultation
- Licensed by the Ministry of Investment
- We follow up with every authority to approval
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
Strategic Location
Saudi Arabia connects three continents (Asia, Europe, and Africa), making it ideal for international trade
Strong Economy
One of the top 20 largest economies in the world.
Government Incentives
Vision 2030 encourages foreign investment to diversify the economy.
Types of Foreign Company Structures in Saudi Arabia
Foreign companies have two main options:
100% Foreign-Owned Subsidiary
A foreign company can establish a subsidiary with full ownership.
Partnership with a Saudi National
Alternatively, companies can set up a joint venture with a Saudi partner.
Requirements for 100% Foreign Ownership
LLC & JSC
Foreign companies must have existed for 1+ years with positive audited financials.
Paid-Up Capital
Varies depending on the business activity and legal structure. The capital must be deposited in a local Saudi bank after registration.
Foreign Branch
Companies must show 3+ years of profitable financials.
Documentation for Company Setup
Commercial Registration & Articles of Association
Must be attested by the Ministry of Foreign Affairs and the Saudi Embassy.
Resolution for Subsidiary
Attested similarly, granting power to open a Saudi subsidiary.
General Manager's Documents
Must also be attested.
Foreign Company Audit Report
Attested by the Ministry of Foreign Affairs and the Saudi Embassy.
Language Requirement
Legal documents must be in Arabic or translated and certified.
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.
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.
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