Estimated Cost of opening a company in Saudi Arabia
As one of the wealthiest and fastest-growing economies in the world, Saudi Arabia is an attractive destination for entrepreneurs looking to start a business. The country is known for its vast oil reserves, but it is also quickly diversifying its economy, with a focus on technology, tourism, and manufacturing.
Opening a company in Saudi Arabia can be a lucrative endeavor, given its booming economy and business-friendly environment. However, before venturing into the market, it’s essential to understand the estimated costs involved in starting a business.
In this article, we will break down the various expenses associated with setting up a company in Saudi Arabia to help you make an informed decision.
Business License
To operate a business in Saudi Arabia, you must obtain a business license. The cost of the license depen
ds on the type of activity you plan to undertake. A commercial license for general trading costs approximately SAR 2,000 to SAR 10,000 (USD 533 to USD 2,667) per year.
Company Registration Fees
You must register your company with the Saudi Arabian General Investment Authority (SAGIA), which incurs a fee of SAR 2,000 to SAR 5,000 (USD 533 to USD 1,333), depending on the type of company you intend to register.
Office Space
You will need to secure office space for your business, which can be an expensive proposition in prime locations. The cost of renting a furnished office can range from SAR 20,000 to SAR 150,000 (USD 5,333 to USD 40,000) per year, depending on the location and size.
Government Fees
Several government fees are applicable when setting up a company in Saudi Arabia. These include visa fees, work permit fees, and various other charges, which can amount to around SAR 3,000 to SAR 10,000 (USD 800 to USD 2,667) per year.
Local Sponsorship Fees
Foreign investors require a local sponsor or agent to set up a business in Saudi Arabia. The sponsor charges a fee for their services, which can range from SAR 10,000 to SAR 20,000 (USD 2,667 to USD 5,333) per year.
Capital Requirement
The capital requirement for setting up a business in Saudi Arabia depends on the nature and size of the business. The minimum requirement is SAR 500,000 (USD 133,333) for a limited liability company (LLC).
Originally published at https://thinkdirectbpo.blogspot.com on April 7, 2023.
