Company Formation Services in Saudi Arabia

Explore the finest options for setting up business in the Kingdom of Saudi Arabia. With us, you can get to know the different types of business structures prevailing in Saudi Arabia. We can assist you gain knowledge about what is required to commence an enterprise in Saudi Arabia.

  • With our service, you can register your company in Saudi Arabia at a rapid pace.
  • We will assist you in finding the right sponsor or partner from Saudi Arabia.
  • We will facilitate in setting up your business and meet associated requirements.
  • We will help you register for tax and licenses required for the business.

Get to know the process and requirements related to registering a company/business in Saudi Arabia in simple and easy steps. Our comprehensive list of services will come in handy

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Welcome to KSA, welcome to success

The Land of the Two Holy Mosques, Known as the birthplace of Islam, is the largest by size, population and economy in the Arabian Peninsula.  Over decades, business houses have been reaping the benefits of KSA’s unparalleled growth.  This is your chance to be a part of the bullish growth of KSA. We can help you gain access to the Saudi economy in very simple steps and company formation will be completed quickly.  The largest sovereign state in Western Asia, categorized as a World Bank high-income economy with a high Human Development Index is the most happening place in the business atlas and we can put you on the map.  An active member of the OPEC, KSA is one of the largest investment centers in the Middle East.

The kingdom of Saudi Arabia has a high GDP per capita that makes it an investor’s paradise.  You are one click away from starting your business in one of the fastest growing economies in the world.


Kingdom of Saudi Arabia

Saudi Arabia, officially known as the Kingdom of Saudi Arabia, is the largest Arab State in Western Asia. KSA has a very young demographic profile with an average age of twenty six years. The official language is Arabic while English language is getting more popular through media.

KSA has a highly developed infrastructure, free public education and health care facilities, and extensive social service program. It is the world’s largest producer and exporter of oil, KSA is focusing on broadening its economy to yield and export extensive variety of manufacturing goods and thereby evolves into a regional and global economic capital.


The foreign investors need to obtain an Investment License from SAGIA under the Foreign Investment Regulations to start any type of business entities. Sometimes foreign investors may need to obtain a pre-approval from the concerned Ministry beforehand to get SAGIA license for certain business entities.

Foreign promoters can function in Saudi Arabia through the following structures:

  • Commercial agencies
  • Limited liability companies
  • Joint stock companies
  • Foreign office branch
  • Technical and scientific offices (Representative Offices)

The commonly used business forms by the foreign investors are, the limited liability companies (LLC) and foreign office branch, however the other forms of business are less common. Foreign investors shall also function in KSA through representative offices and agencies.

Commercial Agency arrangements

Foreign manufacturers of goods are permitted to employ local KSA agents as their agents to sell their products or services in KSA. The law calls for a straight connection between the commercial agent or distributor of goods and the manufacturing company abroad. Foreign nationals are banned from engaging in export and import trades and commercial agencies in KSA.

The Saudi nationals and establishments are not permitted to work as commercial agents unless they are listed in the official records (registry) aimed for this purpose at Ministry of Commerce and Industry (MOCI). The prospective agents should apply for the registration during the first three months as from the date of execution of the agreement.

Limited Liability Company (LLC)

An LLC is a private body made of two or more shareholders or partners who are answerable for business debts to the scope of their contributed capital. LLC is also referred to as a “Saudi Limited Liability Company”. A total number of 50 partners are allowed in an LLC. The capital investment of a limited liability company should not be less than SAR500,000.

The capital investment can be divided into shares of equal value, which may not be denoted by negotiable warrants. Based on the industry, Non-Saudi sponsors can solely own this kind of company and may have one or more directors (managers). The managers thus employed are not necessary to be a KSA national.

For instance, foreign stockholders can solely own a services company but foreign ownership in a Trading company would be restricted to 75% of shares. It is mandatory to have a supervisory board of at least three members if the corporation has more than 20 stakeholders. Share transfers shall be offered to the other partners before third parties.

Joint Stock Company (JSC)

A joint stock company is possessed by five or more persons or bodies. The Capital is distributed into negotiable dividends of an identical amount, and stakeholders are liable only to the scope of the value of their holdings. The prospective JSC or Joint Stock Company engaged in trades such as minerals exploitation, management of public utilities, banking and finance needs to get approval by Royal Decree prior to incorporation. The core management team is made up of a board of directors. This board has been elected and appointed by the stakeholders. The BOD must have a minimum of three members. Directors must own at least 200 shares of the joint stock company.


Foreign Office Branch

Overseas companies are allowed to establish a branch office in KSA to carry out its trading activities. The mother company shall undertake entire liabilities for all activity assumed by the branch office. A license should be obtained to establish a branch office. Temporary branches can be established for the execution of government projects. These temporary branches do not require any minimum capital.

Procedures for Registering a LLP
  • To set up a fully owned LLC of foreign promoter, an investment license and a commercial registration should be obtained.
  • Duly filled in Investment Application Form.
  • A resolution by company BOD expressing their wish to invest in Saudi Arabia listing
    • The partners’ names
    • The capital
    • Each partner’s contribution percentage
    • Their activities
    • General Manager’s appointment.

This resolution should be attested by the concerned authorities and Embassy of KSA in the foreign investor’s country


  • Document proving the track record or experience of the company in the industry that they wish to engage in (e.g. audited financial statements of the foreign investor for the past 3 years).
  • The attested true copies of the participating companies’ CRs which are duly certified by the concerned authorities and KSA Embassy in the foreign investor’s country.
  • An attested true copy of the articles of incorporation of the business certified by KSA embassy and the concerned authorities in the foreign investor’s country.
  • General Manager’s passport copy.
  • If the company wishes to obtain trade name, a copy of trade name booking should be enclosed.
  • An authorization given to a lawyer’s office approved to finalize all the procedures. This should be duly attested by the KSA embassy or by the promoter.
Incorporation process

In order to establish an entity in KSA by foreign investors, it is important to register with a different number of KSA governmental authorities (listed below), after obtaining the required investment license:

  • MOCI in order to obtain a commercial registration; after opening a bank account with a local bank in KSA to deposit the Company’s share capital.
  • Chamber of Commerce.
  • The labour office
  • The municipality
  • The general organization for social insurance
  • The department of zakat and income tax


All the documents produced before the government bodies should be translated to Arabic.

Technical and Scientific offices (Representative offices)

A foreign company shall acquire a technical and scientific services office license. This office may provide technical and scientific support to the parent companies. In Saudi Arabia distributor(s), can conduct market surveys, and undertake product research. This kind of service offices are forbidden from directly or indirectly participating in commercial activities in KSA.

Who all are subjected to income tax in KSA?

  • A resident capital establishment to the extent of its non-KSA shareholding.
  • A resident foreigner who conducts business activities in KSA.
  • A non-resident individual who do business activities in Saudi Arabia through a permanent establishment or PE.
  • A non-resident individual who enjoys other taxable income from sources within KSA
  • An individual engaged in natural gas investment fields.
  • An individual engaged in oil and other hydrocarbon production.

Please feel free to get in touch with us for any queries or information related to finding your way to establishing your business in KSA. It is our pleasure to help you finding what you are searching for in the Middle East.

Get in touch with Gulfline Group today to take your goals further.

Get in touch with Gulfline Group today to take your goals further.
Our Company Formation Services are available in many countries. To know more about our services, please leave a message, stating your requirements on the left. Alternatively, you may contact us through either of the following methods. Gulfline Group associates will contact you as soon as possible.