It is not possible to start a new business from scratch in KSA. Any new business in KSA must be associated with an existing business elsewhere in the world.
This is why audited accounts of an existing business is required as part of the KSA business set-up process. Consequently, only businesses that are performing well and established can move into this market. This is likely to create a very buoyant economic space full of opportunity.
The requirements to set up a business in KSA
- 100% foreign ownership through an existing overseas company
- The KSA entity must be incorporated as a branch or subsidiary of an overseas company
- Provision of the full suite of parent company corporate documents and one year of audited financial statements
- Company documents and financial statements must be attested up to the Ministry of Foreign Affairs in KSA
Ministry of Investment (MISA) Licensing
MISA, formerly known as SAGIA is a government body which issues licenses to foreign owned businesses in Saudi Arabia.
In order to apply for a license, companies must provide their trade license/certificate of registration, Memorandum/Articles of Association, Power of Attorney and previous years audited financials. Each of these documents must be attested up to the KSA embassy in the country of origin before they will be accepted in KSA.
Business setup in the Kingdom of Saudi Arabia with Nexus
Nexus Partners can provide you with a full range of services related to obtaining and renewing your company’s license to do business in the Kingdom of Saudi Arabia.
Our experts are aware of the entire MISA licensing process, as well as best practices for completing all necessary documents. We handle everything for you, so that you don’t need to travel back and forth to KSA. Once parent company documents are translated and attested, the timeline for
Commercial Registration (CR) Issuance
The Ministry of Commerce (MoC) is the government agency responsible for registering all businesses in KSA. Once your business has received their license from MISA, they must register with the MoC.
Once registered, the company will be required to sign the Memorandum and Articles of Association in front of a notary public.
Once your application for the CR license is submitted, it will take 5-10 working days to process and issue the license. Nexus Partners can sign in front of a notary on behalf of the client (if appointed by Power of Attorney).
Post Incorporation Services
Once the new company has been registered, the following registrations must take place in order to begin hiring employees and operating in Saudi Arabia.
Nexus partners offers an end to end service, handling all aspects of the company formation and the post incorporation tasks. Once a company has been created in Saudi Arabia, they can then hire employees and begin operating.
Nexus partners offers an end to end service, handling all aspects of the company formation and the post incorporation tasks.
- General Authority of Zakat & Tax (GAZT) Registration
- VAT Registration
- Ministry of Labour (MLSD) Registration
- General Organization for Social Insurance (GOSI) Registration
- General Manager Visa Issuance
- Municipality (Baladiyah) Approval
- Bank Account Opening
KSA Immigration/PRO Services
We provide a number of services in Saudi Arabia, tailored to suit your business. Whether you require ad-hoc services or a monthly package, Nexus Partners can help you maximize your potential in the Middle East.
- Visa / Iqama Issuance
- Employee Transfer
- Saudization Consultancy
- MISA License Renewal
- Office Relocation
- Serviced Office
- Banking Assistance
More details about Saudi Arabia’s economic conditions
KSA has a total population of 33.8 million, of which 23 million are KSA nationals and circa 10 million are foreigners.
The Kingdom of Saudi Arabia has over 20% of the world’s proven oil reserves. The Saudi economy has been growing at an average rate of 4% over the past seven years, with a pro-business environment that encourages investors to move quickly to the heart of the Arabic market.
This reliance on oil as the foundation of its economy has served KSA well for the last decades. With approximately 40% of the total population under 24, KSA is looking to diversify its economy and provide broader opportunities for its up-coming generations.
The relatively recent changes to 100% foreign ownership of businesses is at the heart of this economic diversification strategy.