Saudi Arabia has one of the largest economies in the Arab world. Its government has made the new business setups and Foreign Investment in Saudi Arabia has more options in a convenient way than before. And this has led to an increase in investors as well as its population. Out of all the Middle East and other foreign nations, Saudi Arabia has proved the most promising business platform.
Getting attracted to such beneficial investment options is obvious. But before planning to Invest in Saudi Arabia- you should know everything about businesses in Saudi Arabia. For Company Formation in Saudi Arabia, you would need authorization certificates from various government departments.
Why Foreign should invest in Saudi Arabia?
Saudi Arabia is having one of the top twenty economies in the world. It is also called the energy superpower. So investing in its businesses and getting profits can attract almost every businessman. The main reason foreign investment in Saudi Arabia is because it is one of the strongest economies in the world an excelling nation.
Important things to know about Foreign Investment in Saudi Arabia-
The ever-growing economy of Saudi Arabia has called for a large number of investors over time. But make sure to know the below listed things before setting up a business in Saudi Arabia
- Free zones for start-ups- Saudi Arabia has two main zones for business start-ups. The industrial cities and the economic cities are the two available free zones for different investing sectors. The industrial cities promote industrial estates and are governed by MODON. At the same time, the economic cities promote Mega initiatives, new concepts, and integrated cities.
- Authorization from MISA- MISA is a government-based authorizing department that facilitates business setups in Saudi Arabia. This governing body facilitates 100% ownership of a foreign business and removes the restrictions imposed on the initial capital of the business. For every investor, it is mandatory to get an authorization certificate from MISA.
- Easy company formation process- The government of Saudi Arabia supports its investors in the company formation processes. The entire procedure has been made very easy and time-saving for new investors. There are local advisors that perform the legal formalities in a convenient and hassle-free manner for investors.
- Increasing business activities- There are numerous business options available in Saudi Arabia now. Its population, as well as economic growth, is continually growing over the past few years. It welcomes new investors with new business ideas or invests in already running businesses with a hot heart.
- Tax exemptions on import and export- Investing in new business start-ups in Saudi Arabia provides tax exemption also. Both the nations involved in the business get exempted from the import and export taxes. A DTT (Double Tax Treaties) is signed for the exemption benefits.
Growing business activities for Foreign invest in Saudi Arabia
An intelligent businessman always does genuine research about which business to invest in. With a growing economy and changing business situations, Saudi Arabia has greatly reduced restrictions on setting up a business in Saudi Arabia. This has led to a tremendous increase in investors and the growth of those business sectors. Below listed are some top business options to start-up in Saudi Arabia
- Business in food and beverage items
- Construction business
- Hospitality business
- Business activities related to healthcare
- Tourism business
The government of Saudi Arabia has supported all the above-mentioned business activities. You can earn lucrative results for your hard-earned investments in these business sectors.
Business activities are literally banned for foreign investors- Besides opening up great chances for business start-ups in Saudi Arabia, its government has prohibited some business sectors for foreign investors. They are
- Civilian explosive manufacturing
- Military apparatus manufacturing
- Security and detective related services
- Military catering services
- Real estate activities in Mekkah and Madina
- Publishing and printing activities
- Media services
- Land transportation activities
- Tourism guidance for Hajj and Umrah
- Drilling in exploration oil
Such decisions are taken because of security and confidentiality reasons. But there are still a large number of options available for foreigners to invest in the immensely growing economy of Saudi Arabia.
Online business platforms in Saudi Arabia-
Looking at the current Covid-19 scenario, Saudi Arabia has facilitated online transaction platforms in businesses to maintain the growth of its economy. The three online transaction platforms are
How to do a Foreign Investment in Saudi Arabia?
In recent years, Saudi Arabia has attracted bulk investors for setting up a business in Saudi Arabia because of its lucrative economy. Undoubtedly, the government has reduced the restrictions imposed on business start-ups; still, the investors need to follow a pre-set procedure for starting their venture. Every investor has to follow the below-listed steps for initiating his desired business activity
Select the type of business and legal structure-
Before putting in your hard-earned money, make sure to decide well on the type of business that you want to start. Try to study the market response and beneficial legal structure for your business also.
Choose a trading name-
Before registering your business, select a trading name for it. While selecting, make sure that your chosen name is unique and not already in use with any rival’s organizations. Moreover, your trade name chosen should not hurt any religious or traditional values.
Go through the Saudi Arabia corporate rules-
For new business activities, the government has lowered down the restrictions to a greater extent. But it has set a distinct set of rules to be followed for setting up a business in Saudi Arabia. Every investor interested in a business start-up needs to go through and then abide by those rules for sure.
Set- up a business plan-
Proper planning is always beneficial for profiting results in a business. Make sure to be ready with a well-planned structure for your business.
Register with the necessary documents-
The next step is to register your business commercially. And for that, you need to submit the below-mentioned documents to the government
- Registration application form
- Trade name conforming document.
- Memorandum of Association (MOA) document.
- Articles of Association (AOA) document.
- Business blueprint letter
- Bank reference letter
- Power of attorney in the name of any third party
- Any extra approvals are required.
Get the necessary approvals-
After submitting the necessary documents, the government authorities of Saudi Arabia perform a strict checking for verification. All the government sectors, including the Municipality, the commercial departments, the General Organization for Social Insurance (GOSI), and the Zakat and Income Tax department (DZIT), perform the required inspections of the documents.
Select an address for your office-
The investor should do detailed research about the market response to his desired business type. For efficient growth, he should always prefer an office in a lesser competitive and highly demanding area.
Get the final authorization-
The government of Saudi Arabia has divided authorizing departments for every business sector. Before the start-up, an investor needs to get final permission from the respective authorizing department.
Every Foreign investor in Saudi Arabia wants profits- there is no denial in that. And when you have opportunities to invest in the largest economy of the Arab- who will let the chance go out of hand?- Take the opportunity and start- up a business in Saudi Arabia with Business Link, we can assist you with the below Services in KSA
- Provide full-fledge of professional legal advice on best company formation in KSA
- Apply for SAGIA | MISA approval
- Register the company with the ministry of commerce and chamber of commerce
- Provide KSA local address as per the requirements
- Register the company with all government’s portals ( MOL, GOSI, VAT, ZAKAT )
- Open company bank account
- HR & Saudization services