The Kingdom of Saudi Arabia is the second-largest country dealing with importing and exporting among the Arab countries. So it is the pronounced place to start any kind of business or company without any hesitations. With the rise of foreign investors, the business growth graph of KSA is increasing day by day. Foreign investors can set up business in Saudi Arabia through the following ways:
- Commercial agencies
- Limited liability companies
- Joint-stock companies
- Foreign office branch
- Technical and scientific offices (Representative Offices)
Even though the most common ways to start a business in KSA are through Limited Liability Companies and Foreign Office branches, hiring commercial agents is also a considerable one. Commercial agent or distributor helps the foreign investor to get into the business market without initiating a direct presence in the KSA.
What is the Difference Between a Fully Owned Foreign Investor and a Foreign Investor with Commercial Agent?
Requirements for Fully Owned Foreign Investor:
- 100% foreign ownership.
- Must have branches in at least three foreign markets.
- A local partner is not required.
- Start the company as a limited liability company or branch.
- Must have a foreign capital investment of 30 million Saudi Riyals minimum.
- They Must give training to 30% of the Saudi employees each year.
- Must invest an amount of not less than 200 million Saudi Riyals during the first five years from the date of a license issued from the SAGIA.
Requirements for a foreign investor with Commercial Agent:
- Foreign equity limited to 75%.
- An entrepreneur who is not having any business in the foreign market can also start a business in KSA.
- Required a local partner with 25% equity.
- Start the company as a limited liability company.
- No need for the direct presence of the investor
- Must have a minimum foreign capital investment of 20 million Saudi Riyals.
- Must give training to 15% of the Saudi employees each year.
- No need for any particular investment in the first five years from the date of a license issued from the SAGIA.
How to Start Trading Activity in KSA with the Help of Commercial Agent?
The main purpose of hiring a commercial agent in KSA is for doing general trading in Saudi Arabia without the direct presence of the foreign investor. They can appoint a person as a commercial agent or distributor for selling their products or services in KSA. With respect to the announcement of the Ministry of Commerce and Industry (MOCI), foreign investors will able to do a trading activity only with the help of commercial agents in the form of a limited liability company. For a Saudi national or a company, if they want to work as commercial agents or distributors they have to register in the Ministry of Commerce and Industry (MOCI) for this purpose.
Business Link will provide Commercial Agents in KSA to deal with the trading activities in Saudi Arabia. We help you to test the local market and trends by not involving any risk in investing in a new market. If you have decided to establish your business in Saudi Arabia, then our commercial agents will help you to develop goodwill about your product and services.
business setup in saudi arabia
Benefits of Hiring Commercial Agent in Saudi Arabia from Business Link
Being a businessman is not as easy as you might be busy with many other things. And you don’t have time for things like creating new connections, developing new relations, and doing market research in the country about your product and service. And you can run your business in KSA with our commercial agent who will do your role of trading correctly without your direct presence. Hiring a commercial agent from Business Link will make your work smooth and trouble-free. You can focus clearly on your business in your home country as well as in the KSA.
Business Link is one of the best companies that can help you to set up your business in Saudi Arabia. We have a team of specialized professional who has excellent knowledge about their work. Start your business or trading in Saudi with help of a commercial agent. Let your business flourish forever internationally with us.
How to set up your business in Saudi Arabia?