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Incorporation of Your Business to Saudi: All About Saudi Company Formation

Are you also one among those bright minds who really strive to form your company in Saudi Arabia? If yes there are many things that you need to know. These are information that are very much essential for you to form your company in Saudi Arabia. As you might already know, Saudi Arabia is known for its huge oil industry. Saudi Arabia is also the largest free market economy in the Middle East and also in North Africa. Saudi Arabia has 28% share in total Arab GDP. The geographic location of Saudi Arabia also provides easy access to many of the export markets including Europe, Asia and Africa. If you are really interested, be happy that the demand and accelerating rate of company formation in Saudi Arabia in increasing day after day.

Which are the major reforms attracting more foreign investments in Saudi Arabia?

Well, Saudi Arabia has a one stop system simplifying and easing business startups. This is very important in this regard. And Saudi Arabia also has a strong intend to protect minority investors. There are also a few more factors. Let is have a clear cut idea about that. They are given below:

  1. Simple and easy enforcement of contract
  2. Online platform for construction permits.
  3. Cross border trading and investments.
  4. Streamlining availability of power.

Which are the promising business setups in Saudi Arabia?

As you already know, high living standards and young bright society are actually boosting the demand for new business setups in Saudi Arabia. Therefore the demand for new sectors increase day after day. If you go through the below given information, you can get to know about the promising business sectors in Saudi Arabia.


  1. Tourism and Hospitality
  2. Street Manufacturing
  3. Engineering and Technology
  4. Real Estate
  5. Lubricants, glass and Plastics
  6. Education
  7. Healthcare and Pharmaceutical
  8. Financial Services
  9. Media and Entertainment

Which are the five forms of companies available for both local and foreign business in Saudi Arabia?

Well, there are five of them and first among that is Limited Liability Company (LLC). It is the most commonly formed company in Saudi Arabia. It allows minimum liability for owners against company debt. But an LLC company is not permitted more than 50 shareholders.

Another important one is the Joint Stock Company (JSC). It consists of capital that divided into equal value.

Another one is the single Member Limited Liability Company (SMLLC). It is a limited liability company and can have a sole owner who owns all the shares of the company. There are many benefits of owning an SMLLC and one individual cannot own more than one company of this kind.

Yet another important one is the Limited Partnership Company (LLP). It is a company in which some or all partners have limited liability with elements of partnerships and corporations.

These are the five forms of company available for both local and foreign business in Saudi Arabia. If you are truly interested in any of this forms of companies, you can try your luck in that. Because it is a great opportunity for you.

How to form a company in Saudi Arabia?

In order to form a company in Saudi Arabia there will be a pre- incorporation process planning and strategy. Following this process a few things are considered. Firstly the name of Business or the Company and then the type of business entity as we have discussed above. It can be LLC, JSC, Branch offices or other types. Finally organizing documents such as Business License, Certificate of Incorporation, Board Resolution, Power of Attorneys etc.

What is the process of Incorporation?

If you are eager to know the process of incorporation let is have a clear-cut look into that. At first the application for investment license is submitted. Then the Article of Association needs to be submitted to the ministry of commerce and Investment. Then you have to register your company name. After completing that the SAGIA Foreign Business License has to be collected before doing the MERAS Registration. Then you have to create a Company Seal. After this there will be registration at chamber of commerce and finally the Bank account opening. This is the process of incorporation.

If you are really interested in forming your company in Saudi Arabia, make use of the opportunities that this country provides you. For further information regarding this, please reach out to us in FIMKIN.

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