KSA
Business setup in Saudi Arabia has become an ideal opportunity for investments from multinational corporations and Small and Medium Enterprises on a global scale thanks to the new investment project initiative, Saudi Vision 2030, and the most recent National Investment Strategy issued by the MISA.
The 1980s saw the construction of industrial cities, which later underwent significant economic growth. At the dawn of this century, economic cities were founded and are still being built.
All About Company Formation in Saudi Arabia:
100% foreign ownership is permitted in both the industrial and economic free zones, which also provide tax exemptions and reduced tax rates for company formation in Saudi Arabia.
How Free Zones Aided in the Diversification of the Saudi Economic System ?
Two different types of free zones have been established in Saudi Arabia to draw in foreign capital for commercial and industrial ventures. Economic-free zones were established for fundamental economic activities such as agriculture, healthcare, education, logistics, science, and research, whereas industrial-free zones are mostly devoted to manufacturing industries.
The main focus of the free zones’ development plan was on the need to diversify the nation's economy and lessen its dependency on oil and gas through non-oil resources. Currently, Saudi Arabia has 28 industrial cities that are managed and maintained by the Saudi Industrial Property Authority and that offer low land leases, easy access to loans up to 75% of the capital, extended loan repayment terms of up to 20 years, and customs duty exemption on raw materials and equipment.
Yanbu and Jubail are two of the most well-known industrial cities, and important petrochemical, fertilizer, steel, iron, and chemical manufacturing plants are found here. Tax incentives, such as custom duty exemptions on machinery and raw materials, lower taxes on training and salary costs, and general tax exemptions for some particular business units, have not yet been applied in economic cities.
The economic hubs of Jazan, Knowledge and Prince Abdulaziz Bin Moussaed are all well-known.
Permitted Business Activities
The Kingdom of Saudi Arabia currently offers enormous success and growth opportunities due to its high level of life, young population, and diverse commercial sectors. The lucrative business sectors in Saudi Arabia where we provide our services are listed below.
Types of Sectors/Licenses:
- Trading Sector
- Service Sector
- Industrial Sector
Forbidden Activities in Saudi Arabia
The list of forbidden actions is as follows, and it includes but is not limited to:
Manufacturing of uniforms and related gear for use in the military and defense Agencies offering security and investigation services Brokerages in the Real Estate Oil and gas drilling and exploration fishing industry business Real estate investment in Makkah and Madinah
How to Proceed with Business Setup in Saudi Arabia ?
The following steps are essential for a business setup in Saudi Arabia:
1. Choose a Legal Entity
Depending on the company activity and the legal form, different requirements for paid-up capital and shareholding structures will apply.
Joint Stock Company Limited Liability Company Branch of a Foreign Company General Partnership An Establishment Technical and Scientific Services Office.
2. Decide on a Location
Choose a location for your business and register a nationwide address.
3. Create the Company's Incorporation Paperwork
Complete the official business paperwork, including the articles of association, and get the business's commercial registration (CR) license.
Register with the Saudi Arabia Ministry of Investment (MISA).
4. Proceed with Registrations after Incorporation
To fulfill the residency (iqama) visa, the general manager (GM) travels to the Kingdom of Saudi Arabia (KSA). Register the GM with the government and in the company's records.
5. Open a Business Bank Account
Meet with the bank to sign and apply for a KSA corporate bank account.
Why Enter the Market of Saudi Arabia ?
There are several reasons why you should join the KSA market.
The population as a whole: 33.4 million Approximately 50% of the population are youth (under 25)1.6% Growth in the populace (next five years) Nominal GDP: 782 billion$23,570 GDP per person230.8 billion in FDI stock coming in Low cost of living and exemption from personal income taxes places that are safe and have remarkably low crime rates. The geographical position is compelling for trade and travel.
Create a Saudi Arabian corporation with 100% foreign ownership. We offer professional company formation services that will protect and keep you in charge of your groups and company's existence in KSA.