Company Formation Steps in Saudi Arabia
A step-by-step guide to establishing your business in the Kingdom
Setting up a business in Saudi Arabia involves several well-defined steps. Follow our comprehensive guide below to navigate the formation process efficiently.
Business Activity Selection
Duration: 1-2 daysChoose the right business activities that align with your business model and future plans in Saudi Arabia. This initial step is crucial as it determines the license type, capital requirements, and ownership structure.
Requirements:
- Business concept and scope clearly defined
- Market research completed
- Understanding of activity restrictions based on nationality
Company Name Reservation
Duration: 2-3 daysReserve your company name with the Ministry of Commerce. The name should comply with Saudi commercial naming regulations and be available for registration. Names must be in Arabic with an optional English translation.
Requirements:
- Proposed company name (3 options recommended)
- Brief description of business activities
- Payment of name reservation fee (SAR 200)
MISA License Application (for Foreign Investors)
Duration: 5-7 business daysForeign investors must obtain an investment license from the Ministry of Investment (MISA) before proceeding with company registration. This license permits foreign entities to conduct business in Saudi Arabia.
Requirements:
- Completed MISA application form
- Shareholders' passports/IDs and financial statements
- Business plan with financial projections
- License application fee (SAR 2,000)
- Proof of capital (depends on business activity)
Drafting and Notarizing Articles of Association
Duration: 3-5 daysCreate and notarize the company's Articles of Association (AoA), which outlines the company structure, shareholder information, capital contributions, management framework, and dispute resolution mechanisms.
Requirements:
- Draft Articles of Association in Arabic
- Shareholders' information and capital contributions
- Notary appointment (can be done online)
- Notarization fee (varies based on capital)
Commercial Registration
Duration: 1-2 daysRegister your company with the Ministry of Commerce to obtain a Commercial Registration (CR) certificate, which officially establishes your business entity in Saudi Arabia.
Requirements:
- MISA license (for foreign investors)
- Notarized Articles of Association
- Proof of capital deposit
- Lease agreement for business premises
- Registration fee (SAR 1,200 for 5 years)
Chamber of Commerce Membership
Duration: 1 dayJoin the local Chamber of Commerce, which is mandatory for all businesses operating in Saudi Arabia. Membership provides various benefits including networking opportunities and business support services.
Requirements:
- Commercial Registration certificate
- Completed membership application
- Membership fee (varies based on capital and grade)
Municipality License
Duration: 3-7 daysObtain a Municipality License (Business Activity License) from the local municipality, which verifies that your business complies with zoning regulations and safety requirements.
Requirements:
- Commercial Registration certificate
- Lease agreement with location coordinates
- Civil Defense safety permit
- License fee (varies by activity and size)
Tax Registration
Duration: 1-3 daysRegister with the Zakat, Tax and Customs Authority (ZATCA) to obtain a tax identification number and comply with tax regulations including VAT, withholding tax, and Zakat (for Saudi/GCC shareholders).
Requirements:
- Commercial Registration certificate
- Articles of Association
- Authorization letter for tax representative
- VAT registration (mandatory for businesses with annual revenue exceeding SAR 375,000)
GOSI Registration
Duration: 1-2 daysRegister with the General Organization for Social Insurance (GOSI) to provide social insurance coverage for employees and comply with labor regulations.
Requirements:
- Commercial Registration certificate
- National address certificate
- Information about employees (to be added later)
Bank Account Opening
Duration: 5-10 daysOpen a corporate bank account with a Saudi bank to manage your business finances, process transactions, and meet capital deposit requirements.
Requirements:
- Commercial Registration certificate
- Articles of Association
- Board resolution for account opening and signatories
- Passport copies of shareholders and signatories
- Initial deposit (varies by bank)
Required Documents & Templates
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MISA License Application Form
PDF Format, 520KB -
Articles of Association Template
DOCX Format, 350KB -
Business Plan Financial Template
XLSX Format, 280KB -
Required Documents Checklist
PDF Format, 180KB
Need Expert Guidance on Company Formation?
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