Saudi Arabia is a fascinating country, known for its oil wealth and unique cultural heritage. But what is attracting the most attention in recent years is its emergence as a leading investment destination .
According to the World Bank’s Doing Business magazine, in its 2020 report, Saudi Arabia is the Arab country that offers the most business opportunities.
The steps and procedures to create your business in Saudi Arabia
Step 1: Get to know the region and business environment
Before you embark on starting a business in Saudi Arabia, you must seek to obtain the right information about this country. Specifically, be prepared to do extensive research on the area in which you plan to locate your business. Likewise, you need to learn more about the industry you would like to start in. In fact, the realities in your home country in a given industry are probably not the same as in Saudi Arabia.
Step 2: Obtain authorization from SAGIA
The Saudi General Investment Authority (SAGIA) issues authorization to all entrepreneurs who wish to set up a business in this country. The authorization will allow you to invest there legally.
After obtaining such a license, you can now choose the legal status of your new company. To this end, SAGIA recognizes several types of status, namely:
It is the most popular legal form. Here, shareholders have limited liability depending on the value of their shares. However, this will not affect their personal assets. If you opt for this status, you will need other associates.
The total share capital to be released is one hundred thousand SAR. Regardless of the requirements, registering a legal form company can be more complicated due to the formation of share capital. The branch of a foreign company or the joint stock company
You can establish your business in Saudi Arabia through a parent company. The new company will then become a subsidiary or branch of the parent company which owns it entirely.
Step 3: Choose and reserve a business name
After choosing the legal form, you can now reserve a business name. As in France, this name must be unique.
After confirmation of the reservation (available within two months), you can register the chosen business name.
Step 4: Submit statutory documents
This approach is also made to the Ministry of Trade and Investment in Saudi Arabia. Specifically, you must submit your company’s statutory documents to the Department of Corporations. The latter is subordinate to the Ministry of Trade and Investment.
Then have the company’s articles of association signed before a notary public in Saudi Arabia. Publish the trade name and statutes of your company in the Saudi OJ. You must first pay a certain tax.
Step 5: Open a bank account
As with any business creation process, you must also open a bank account for your legal entity. It will be used to constitute the company’s share capital.
This account will be activated upon obtaining your registration certificate. Make sure that your partners or share holders make an effective transfer of their shares. A certificate will be issued when all deposits are effective.
Step 6: Carry out other administrative procedures
Now you can register with the local Chamber of Commerce and the Ministry of Trade and Investment as well as the General Social Security Organization. Finally, request the business opening certificate from the Ministry of Finance, the Department of Zakat and Income Tax and finalize the procedures with the Saudi Ministry of Investment. These are the steps that lead to the creation of your business. Once your business is created, consider implementing a strategy to promote your brand.
After finalizing the steps to create your business, you can now promote its services. First of all, you need to define an effective marketing plan. For this, you will undoubtedly need the advice of a professional in business consulting.
This also allows you to increase your online presence. Therefore, you can call on a Community Manager who can help you promote your activity on social networks.
You will also need to have a website and a blog in order to better reach other prospects and stay in touch with customers already acquired. So don’t rest on your laurels, because the potential risks are present.
New businesses can also experience financial crises. To avoid them, you must adopt good financial habits. For example, you must keep your accounting documents up to date and regularly estimate your expenses.
In addition, you should make sure that you have the capital to cover them. Always keep track of your various financial and business transactions. You can opt for income and expense recording tools. This way, you will know your financial situation in real time.
Avoid over-indebtedness and seek support from a legal expert to increase your presence. This is essential to make your business prosper in the Kingdom. As a foreign investor, take care to create a feeling of trust and strengthen your credibility. Be honest about your different activities and clearly state your objectives, ideas and achievements. Some organizations can provide you with resources. They will be very useful to you in the long term. Having a solid plan, however, could help you benefit from local and even government support . Likewise, it is recommended to know the legal and tax environment for investments in Saudi Arabia.
You will thus be able to better understand the actions to follow as well as the legal and tax requirements when it comes to starting a business in Saudi Arabia. These professionals will also be able to protect your various interests.
