Limited Liability Company is a commonly preferred business type in Saudi Arabia. A shareholder and a director can form a Limited Liability Company; its main advantage is that the liability of shareholders is limited to their capital investment. It can have between one and 50 shareholders. You will have to meet the minimum capital requirement which is determined by the business activity chosen for your business.
Requirements For LLC Company Formation
Are you planning to set up a Limited Liability Company in Saudi Arabia?
Most foreign investors prefer LLC Company Formation in Saudi Arabia due to the ease of its registration process. The process of application vary based on the type of business you want to establish in the country. The required documents include the license of the parent company, Memorandum of Association or Articles of Association, and financial audit report for last year. As per law, there is no minimum amount of capital required for an LLC, but MISA may unilaterally impose a “capital sufficiency” requirement for a standard license (usually no less than SAR 300k).
Benefits of investing in Saudi Arabia
Investing in Saudi Arabia is a fair bet considering the exceptional development plans of the country. Also, they are offering various incentives for businessmen to attract investment across various sectors including manufacturing, construction, education, tourism, and IT. The following are the top benefits of starting your business in Saudi Arabia:
- Opportunity to invest in the largest economy in the Middle East
- Flexible business policies to support businesses of all sizes
- Minimal corporate and personal tax
- The owner’s liability for business debts is limited to his/her contribution to the shared capital.
Steps for Establishing an LLC in Saudi Arabia
- Prepare the documents including the business plan
- Apply for the foreign capital investment license (applicable for foreign investors)
- Obtain the certificate of registration
- Open the company bank account and deposit the required minimum capital
- Register for taxation with the municipality
- Apply for the relevant business licenses
Why choose BusinessLink?
BusinessLink has been operating in Saudi Arabia for more than five years and has a business center in Riyadh, a prominent city in the region. Our expert consultants provide our clients with legal advice, making the business set-up process easier and more convenient. We assist our clients in varied areas, including business setup, licensing, visa services, payment gateway, and banking. Furthermore, our PRO services enable businesses to navigate legal formalities without hassles. Interested in discussing more? We are just a call away!