Detailed info on if a foreigner can own a business in Saudi Arabia

4 min readFeb 22, 2023

Looking for a dynamic and varied environment to start a new company? Saudi Arabia is the only place to look. It makes up nearly a quarter of all economic activity in the MENA region and has an astounding 700 billion dollar economy.

All kinds of industries, from manufacturing and agriculture to pharmaceuticals and services, are present in that thriving market. And whether you are a citizen of the GCC or from somewhere else, it’s simple to get established in any of them with the right support.

The vast and open economy of Saudi Arabia, the country’s easy company formation processes, and its effective tax system have drawn a growing number of expats to live there. Continue reading to learn everything you need to know about company formation in Saudi Arabia if you’d like to join them.

Advantages of foreign entrepreneurs establishing businesses in Saudi Arabia

Investing in Saudi Arabia has many economic and social benefits. As for the latter, it has one of the lowest crime rates in the world, as well as one of the highest standards of healthcare and education.

Especially for non-oil-related businesses, foreigners doing business here benefit from minimal income and sales tax liabilities.

Due to its increased ease of doing business, Saudi Arabia has also gained popularity. The World Bank Doing Business Index last year ranked the kingdom higher than Qatar, India, and Luxembourg because of its progress in this area.

Steps to start a business in Saudi Arabia for foreigners

Thinkdirect BPO offers free consultations before you begin the process of applying for a business license. Before guiding you through the following steps, we will help you gain a complete understanding of business setup in Saudi Arabia.

The first step is to choose your industry and business structure

You must first briefly describe the field you want to work in and the tasks you plan to carry out. This will determine whether it is best to set up in a free economic zone or on Saudi Arabia’s mainland. It will also dictate the type of license and legal entity that you require.

Location of the business

From 2023, Saudi Arabia will no longer issue licenses to foreign companies with no regional headquarters in the country. Therefore, if you are setting up a branch company, you will need to lease business premises or work with a local service agent.

If you are launching a new business, you have two options: lease space on the mainland or sign up for a license package in a free economic zone.

Investment permit

As a foreigner looking to start a business in Saudi Arabia, you’ll need an investment license. This is issued by the Saudi Arabia General Investment Authority (SAGIA). With this in hand, you can invest in the country, buy or establish a new company or set up a foreign branch.

At this time, you must also submit an application for a commercial registration certificate with the Ministry of Commerce and Investment.

Additional Documentation

The Ministry of Commerce will require a few more documents, and once more, Thinkdirect BPO can assist you in obtaining them.

To get your memorandum of association and your issuance of commercial registration, we’ll communicate with the appropriate organizations. You must designate a General Director and submit the following paperwork to confirm the incorporation of your company:

Proof of ID and address for directors and shareholders
Passport copies for shareholders and directors
Copy of trade name confirmation
Memorandum of Association (MOA)
Articles of Association (AOA)
* Bank reference letter

You will also require a business visa to live, work, and reside in Saudi Arabia. Thinkdirect BPO can once more oversee this procedure for you.

Working with Thinkdirect BPO

To conduct business in Saudi Arabia, every company needs a license. While the procedures for foreign investors are not overly difficult, some prior knowledge is necessary. It’s crucial to ensure that all your business visa/license applications are flawlessly free of errors.

This can be a little stressful, so as we have suggested throughout this article, working with a company formation specialist is the fastest way to get started.

Here at Thinkdirect BPO, we offer you the best solutions to start your company in Saudi Arabia. You get fast, reliable and unbiased advice on your unique business setup requirements. We can help you choose the right kind of license for your business activity and take you through the entire process from start to finish.

Originally published at https://thinkbpo.me on February 22, 2023.