Saturday, 27th August 2022 – Those looking for a trading business setup in Saudi Arabia are in for a treat! Saudi Arabia’s Ministry of Investment (MISA) recently announced a new set of regulations for entrepreneurs looking to set up their trading businesses in the country.
Business in Saudi Arabia has long been an investment hub in the Middle East, along with UAE. According to Deloitte’s 2021 research on the business market in Saudi Arabia, SAGIA’s primary aim has been to facilitate and encourage investment (both local and foreign). And it has done so very well over the years. Saudi Arabia has been working towards increasing the same with the help of economic cities and industrial hubs to improve the state of business.
However, Saudi Arabia is infamous for having been a difficult country to set up a trading business in. With requirements that have been stressful to meet and policies that often lead entrepreneurs to drop the idea, Saudi Arabia is now welcoming cooperative regulations.
The newest ruling on a trading business setup in KSA brings in added flexibility. This serves as a huge relief to those looking into investing in Saudi Arabia. Interestingly, this update in regulations allows for a shorter processing time of your licenses, paperwork, and overall business setup.
Previous requirements for a Trading Business Setup in KSA
Prior to July 2022, if entrepreneurs wished to establish a business that practiced activities related to trading, they were required to fulfill several requirements. The first condition was the need for the parent company to own three branch companies under its name. A part of this condition was that all three branch companies must be in three different countries.
Next, is the requirement of the audit report. The company must provide the previous year’s audit report. The annual turnover of the company should be over 30 million Saudi Riyals. Additionally, your company’s documents must be attested by the Ministry of Foreign Affairs as well as the Saudi Arabian Embassy. This requirement must be fulfilled in the countries in which the branch companies are registered in.
Lastly, the company’s capital investment must be a minimum of 30 million Saudi Riyal. This amount must be reflected within three years of making the investment.
If you have always been eager to have a trading business setup in KSA, now is your chance! There has never been a better time to establish your trading business in the country. Backed by several resources, access to the international market, business-friendly laws, and more, Saudi Arabia is currently in its prime!
Get in touch with our powerful team of consultants that cater to the Saudi Arabian market. We are your #LinkToSuccess.
About Business Link
Business Link is one of the leading corporate consultancy firms, offering trusted business setup and corporate solutions within the UAE and KSA. Since our inception in 1999, we have built a name for ourselves as the most trusted business consultants in the country, having achieved almost 100% client satisfaction.
