Company Formation for Foreigners in Saudi Arabia

Setting up a company in Saudi Arabia as a foreigner is a major milestone on your path to success in the world of business and finance. To encourage international investors, the Kingdom has implemented ambitious economic reforms, enhanced real estate solutions, and introduced business-friendly regulations that simplify the process of company registration—whether you are a Saudi or a foreign national.

In this article, we’ll explore how foreigners can establish companies in Saudi Arabia, the minimum required capital, and the necessary steps to open a new company or a branch of an existing one.

How Foreigners Can Establish a Company in Saudi Arabia

Saudi Arabia has introduced several legislative and economic reforms to attract foreign investment. The Saudi Ministry of Investment allows non-Saudis, including GCC nationals, to open and register branches of their companies, provided they follow specific procedures.

6 Steps to Register a Company in Saudi Arabia as a Foreigner

1. Submit an official investment application to the General Authority for Investment (GAI).

2. Attach a notarized copy of the company’s Articles of Incorporation, verified by the Saudi Embassy in your home country. This should include details like company name, business activity, capital, and the appointment of a general manager.

3. Reserve the company name through the Ministry of Commerce and Industry. Approval typically takes no more than five working days.

4. Legalize the company’s Articles of Association at the notary public, typically completed within two working days.

5. Announce the company’s foundation in the official gazette.

6. Register with relevant government entities, including the Chamber of Commerce, General Organization for Social Insurance (GOSI), Passport Department, and Ministry of Interior.

💡 Tip: SidraHub experts can save you time by handling all company formation procedures on your behalf, offering a free business consultation to ensure legal and smooth setup.

What Is the Minimum Capital Required to Start a Company?

According to Article 54 of the new Companies Law in Saudi Arabia, the capital must be sufficient to meet the business goals. However, the minimum required capital is SAR 500,000, and at least 25% must be paid upfront when the company is established.

Partnering with a Foreign Investor in Saudi Arabia

Foreigners can become partners in Saudi companies under certain conditions:

• The business activity must be approved for foreign investment.

• The investor must obtain all necessary permits and licenses from the General Authority for Investment.

• The foreign partner must have no legal violations or fraud cases in their home country or elsewhere.

SidraHub provides full support and guidance for partnering with foreign investors in Saudi Arabia.

Requirements to Open a Branch of a Foreign Company in Saudi Arabia

Saudi Arabia is a favorable destination for international investors looking to open a branch of their existing company. Here’s how:

1. Visit a branch of the Ministry of Commerce and Investment in person or through an authorized representative.

2. Submit all required documents for verification.

3. Once verified, pay the invoice issued for the application. The duration must align with the validity stated in the investment license.

4. Receive the Commercial Registration Certificate after payment.

💰 Fees:

• Limited Liability Companies: SAR 1,200 per year

• Joint Stock Companies: SAR 1,600 per year

Need Help?

If you have any questions or need assistance forming a company in Saudi Arabia as a foreigner, contact SidraHub’s business experts today for a free consultation.