Subsidiary Company Setup in KSA
Start your subsidiary or LLC Company in Saudi Arabia
A subsidiary company setup in KSA is one that’s gaining immense popularity rapidly. As the economy of Saudi Arabia flourished, the country saw an abundance of investments being made within the country, by locals as well as with the help of foreign investors. KSA saw many new milestones being achieved, undertook several developmental projects, and reassessed regulations that the country eventually benefitted from.
Similarly, the bringing in of the Subsidiary company type too was a monumental change within the country that was greatly appreciated by locals and foreigners alike!
A subsidiary is an entity where the controlling interest is either totally or partially held by another company, often known as the holding company. A subsidiary company setup in KSA, unlike a branch office, does not report to the parent organization. This benefits the company for the purposes of taxation, regulation and liability. Its obligations are also typically its own and are not usually a liability of the parent company.
Business Link has long helped entrepreneurs fulfill their entrepreneurial dreams in the UAE and KSA, across various jurisdictions and company types. And now it’s time we assist you with the same, if you’ve always dreamt of a subsidiary company setup in KSA, now’s your chance! Get on a call with us and let us assist you better.
Benefits of establishing a subsidiary
- A subsidiary company setup in KSA is a Limited Liability Company and because of this, it’ll be treated like a domestic or a local entity that enjoys the same benefits.
- Legally, the subsidiary can perform the same activities as it’s holding company. If ever required, the subsidiary may also perform other activities that fall under the same activity.
- In Saudi Arabia, subsidiaries are allowed to own various types of assets as well.
- Business activity can remain the same as the parent company.
Documents required to set up a subsidiary
The documents required to open a subsidiary are relatively straightforward and easy to obtain/draft. These are;
- Parent company business license
- Memorandum of Association or Articles of Association
- Power of Attorney (for Business Link KSA to take over your business setup process)
- Audit report of your parent company
- Shareholder’s certificate, if any
- Copy of shareholder’s passport
- Company name (in Arabic with Arabic meaning)
Things to keep in mind
- Your chosen name must be in Arabic with an Arabic meaning
- Can appoint a maximum of three managers
- Company name can be same as the parent company, but the activities must be different.
- All documents submitted must be translated to Arabic.
Process of setting up a Subsidiary Company
Our consultants understand the technicalities that go into the process of setting up a business in Saudi Arabia and this allows us to not only assist you better but also be ahead of the process thanks to our key links with government bodies. Here’s how we assist you in setting up your subsidiary;
- Step 1: Trade name and business activity is booked and sent for approval.
- Step 2: Documents are then sent for attestation to the Ministry of Foreign Affairs, Saudi Embassy, and Chamber of Commerce in Saudi Arabia.
- Step 3: All necessary payments for the SAGIA/MISA are made.
- Step 4: Subsidiary license is applied for at the SAGIA/ MISA.
- Step 5: Assistance is provided in drafting the Articles of Association
- Step 6: Company office is registered with General Organization for Social Insurance (GOSI), Zakat (Tax Authority), and the Ministry of Human Resources and Social Development (MOHRS).
- Step 7: Assistance is provided in the opening of a corporate bank account (Riyadh Bank).
- Step 8: Virtual office national address for your branch office is registered
- Step 9: Company stamp and mobile number are provided.
- Step 10: Assistance is provided with the registration of the appointed manager at the Chamber of Commerce
Want to know more about how you can form a subsidiary company in KSA? Book a free consultation with us and we can give you all the details!
