Various business structures are available based on the nature of the business activity, capital investment, and the number of shareholders. Common types of companies include:

• Limited Liability Company (LLC): The most favored structure for foreign investors, requiring at least one shareholder.
• Joint Stock Company (JSC): Suitable for larger businesses and requires a minimum of five shareholders.
• Branch Office: For businesses wishing to establish a branch of their foreign company in Saudi Arabia.
• Single-Person Establishment: Owned by a single individual with limited liability.
• Technical and Scientific Office (TSO): For foreign firms to promote their products without engaging in direct sales.

• Most sectors permit 100% foreign ownership, but some areas (such as real estate, retail, and trading) may necessitate a Saudi partner or impose specific restrictions.
• For sectors that are limited, a partnership with a Saudi national or a Saudi-owned company is required.

• Generally, there is no minimum capital requirement for an LLC in most sectors.
• Certain sectors, like banking and insurance, require a substantial minimum capital investment.
• Joint Stock Companies (JSCs) must have a minimum capital of SAR 500,000.

Depending on the nature of the business activity, you will need to acquire a license from the relevant authorities:

• • Commercial License: Required for trading and retail businesses.
  • Service License: For service-oriented sectors, such as consulting or IT.
  • Industrial License: Needed for manufacturing or industrial activities (issued by the Saudi Industrial Development Fund).
  • Professional License: For professional services like law, engineering, or accounting.

Identify the business activity you wish to pursue and ensure it aligns with the permissible business activities as defined by the Saudi Arabian General Investment Authority (SAGIA). These activities may include trading, consulting, manufacturing, construction, technology, and media.

Select a distinctive trade name for your company that adheres to the guidelines established by the Saudi Ministry of Commerce. The name must not closely resemble any existing companies and must align with public morals and Saudi customs.

Foreign investors must secure an Investment License from MISA to legally own and operate a business in Saudi Arabia. Required documents for the MISA license application include:

• • Copy of the passport of the owner or shareholders.
  • Proof of experience in the relevant business sector (for specific industries).
  • Financial statements from the previous financial year (for established businesses).
  • A business plan or feasibility study (for new enterprises).
  • Evidence of initial capital deposit (if applicable).

Create a Memorandum of Association (MoA), detailing the company’s purpose, capital, ownership, and management structure. The MoA must be notarized and submitted to the Ministry of Commerce.

After obtaining the investment license, register your company with the Ministry of Commerce (MoC). Documents required for registration include:

• • MISA License
  • MoA
  • Trade name reservation certificate
  • Shareholders’ details (including passport copies and national IDs)
• Upon successful registration, you will receive a Commercial Registration (CR) certificate.

After your company is registered, open a corporate bank account with a Saudi bank. Required documents may include:

• • Commercial Registration (CR) certificate
  • MISA License
  • Shareholders’ information
  • Proof of company address (such as a lease agreement)
  • Board resolution authorizing the bank account opening.

Obtain a physical office location in Saudi Arabia, and submit a lease agreement as part of the registration process.

Register your company for Zakat and Value Added Tax (VAT) with GAZT. All companies must comply with VAT and tax regulations, even if they are entirely foreign-owned.

• After the company is established, you can apply for residency visas (Iqama) for your employees. The number of visas is linked to the company’s size and business type.
• Register with the Ministry of Human Resources and Social Development (HRSD) and the General Organization for Social Insurance (GOSI) to ensure compliance with labor laws and employee rights.