Complete Guide of Commercial Registration in Saudi Arabia

commercial registration in saudi arabia

To start a successful foreign investment and business setup in Saudi Arabia, investors must be familiar with the company registration process in the Kingdom. In this guide, Business Link’s company formation consultants outline all the requirements and legal steps of commercial registration in Saudi Arabia. Following this consultancy guide makes it easier for investors to understand the intricacies of the investment climate in Saudi Arabia and realize the full potential of their projects. Continue reading.

Commercial Registration Saudi Arabia 

The Ministry of Commerce is responsible for the limited liability company formation procedure in Saudi Arabia. So, if you want to do a commercial registration in Saudi Arabia, you must follow all the procedures effectively.  Understanding the registration procedures is important to make the right decision accordingly.

Whether you want to opt for foreign capital investment or become a shareholder, you must obtain a license from the Saudi Arabian General Investment Authority (SAGIA). They have released information about the minimum capital investment, especially for the LLC company involved in local and foreign investments.

Benefits of Obtaining Commercial Registration in Saudi Arabia

Commercial registration in Saudi Arabia is necessary to enhance the business’s credibility and hence, give the company a competitive advantage

  • Legal Recognition: Being officially registered imparts a sense of legitimacy to the business.
  • Trustworthiness: Customers, suppliers, and partners often trust registered businesses more than unregistered ones.
  • Access to Opportunities: Many opportunities and partnerships require businesses to be officially registered for consideration.
  • Compliance with Regulations: Registration demonstrates a commitment to complying with the legal and regulatory framework.

Requirements for Commercial Registration Saudi Arabia

For foreign investors to start a company in Saudi Arabia, they must fulfill certain requirements. Depending on the company’s legal form, these requirements could change. For the commercial register Saudi Arabia procedure to go smoothly and successfully, it is essential to investigate and comprehend these qualifying requirements fully.

  1. The legal form of the company: This completely depends on the business goals and the activities the company engages in. It is advised to consult an expert to choose a company structure that fits the particular objectives of the business.
  2. Share capital requirements: As per the rules of company registration in Saudi Arabia, the procedure that should be followed, especially for the funding, is as follows:
    1. General Trading Company: SAR 100,000
    2. General Manufacturing Company: SAR 1,000,000
    3. Companies involved in investment across the Sector: 25,000,00
  3. Local sponsorship requirements: Foreign investors must have a local sponsor or partner. To manage local laws, regulations, and cultural nuances. Selecting a trustworthy local sponsor is essential to the company’s success and long-term viability.
  4. Selecting Company Name: The name must be original, considerate of cultural differences, and compliant with the guidelines established by the Ministry of Commerce (MOC). “Limited” or “Ltd.” must appear in the name of a limited company. Every one of these choices has an impact on the business’s overall performance and long-term viability. Ensuring long-term success through comprehensive planning and expert assistance will expedite the process.
  5. Opening bank account: To ensure complete commercial registration in Saudi Arabia, you must open a bank account. Opening a bank account will usually take around one working day. Hence, it is advisable to follow the procedure accordingly.
  6. Article of Association:  The article of association and notarization need to be submitted to the Unified Center or Companies Department. It is crucial to follow whatever guidelines and deadlines have been submitted. Notarization will take around 3 days. The MOA determines the legality of the documents. 

Certificate of Registration

 Investors must properly apply for company registration. The parent company board should approve the KSA entity’s incorporation. The following documents are the ones investors should have to obtain the commercial registration certificate:

  • A copy of the trade name authorization. 
  • Evidence of address and identity for shareholders and business directors.
  • The articles of association (AOA) and the memorandum of association (MOA).
  • Business blueprint, letter of recommendation for a bank account, power of attorney, etc. approvals from third parties (if any).

Arabic Translation Requirements

  • Arabic translations for all official documents.
  • Translations from certified translators or organizations.
  • The commercial register Saudi Arabia procedure must go smoothly in line with the law with a certified translation.

Getting Governmental Approvals

Obtaining approvals from multiple government agencies and being aware of the particular procedures for distinct industries are necessary when starting a business in Saudi Arabia. A closer look at this procedure is as follows:

Ministry of Commerce (MOC): Trade name verification and commercial registration.

Chamber of Commerce: Accreditation and Membership.

Office of Labour, Municipality, ZATCA: Diverse legal and operational clearances.

Appropriate Ministries for Particular Industries: Ministries of Health and Tourism, for instance, are responsible for different sectors of the economy.

No matter what document you are applying for and what document you are obtaining, it is crucial to follow the rules and procedures as per the stated deadline. It is essential to understand what the government’s stand is for commerce registration in Saudi Arabia.

Partnership with Business Link

Our elite team of business setup consultants is working nonstop in Saudi Arabia. We will ensure everything is perfect and professional before you start your investment in Saudi Arabia. With more than 15 years of experience in setting up companies in both the UAE and KSA. Business Link’s team excels in supporting investors from different sectors to start businesses in Saudi markets. Our partnership will guarantee the biggest profits for all our clients.