Planning to start a business in Saudi Arabia from UAE? But confused how to establish your business in this foreign land? This blog will explain you how to process a company formation in Saudi Arabia from UAE.
So let’s get started !
Types of Companies a UAE National Can Setup in Saudi Arabia
A UAE national can set up various types of companies in the Kingdom of Saudi Arabia. They can benefit from several agreements and initiatives established to boost the economic cooperation between the GCC countries.
Below we list the types of companies that can be formed by a UAE national in Saudi Arabia
- Limited Liability Company (LLC)
- Joint Stock Company (JSC)
- Branch of a Foreign Company
- Representative Office
- Joint Venture
- Sole Proprietorship
- Professional Services Company
Advantages of Expanding or Starting a Business in Saudi Arabia from UAE
Starting or expanding your business in Saudi Arabia from the United Arab Emirates offers great opportunities for UAE entrepreneurs and established businesses. The close proximity of both the countries and similar cultures is an added advantage for the UAE nationals to start their business in Saudi Arabia. Wondering what are all the advantages awaiting you, when you start or expand your business in Saudi Arabia? Have a look at the points below.
- Saudi’s growing economy provides a stable ground for business setup in Saudi Arabia from UAE
- Government initiatives like Vision 2030 offers new investment opportunities in KSA
- Saudi Arabia is the largest market in the middle east with great consumer base
- Strategic location of Saudi Arabia offers significant business opportunities as it serve as the gateway to Africa, Europe and Asia
- Special Economic Zones of Saudi Arabia offers tax incentives, simplified procedures and other benefits in business formations
- Modern infrastructure and easy transportation supports business operations
- Opportunity to be part and participate in the Mega and Giga projects of Saudi Arabia
Legal Requirements To Set Up a Business in KSA
To Incorporate business in Saudi from UAE one has to follow certain legal requirements. Though the legal requirements may vary from business to business, there are certain legal requirements that are common to every type of businesses and here we list them below. In order to set up business in KSA, the UAE national has to establish either their branch, rep office or subsidiary company with full ownership or partnership with any Saudi citizen. Also other requirement is that the UAE company has to be functioning for at least one year and they have to submit audited financial statements of the previous financial year.
Apart from this, the UAE company has to make ready the following documents:
- Company Incorporation Documents including Trade License, Commercial Registry etc.
- Power of Attorney
- Memorandum of Association
Location of UAE companies matters a lot, and documents to be submitted depend largely on whether the company is located in the free zones or mainland of Saudi Arabia. If the company is located in the free zones of Saudi Arabia, then certificates like the Share Certificate or Certificate of Incumbency, Certificate of Incorporation or Registration, or Good Standing Certificate would be required.
Based on the company’s legal structure and license, the company may be asked to submit other documents in terms of capital, investment, and turnover.
Also, additional documents and approvals may be asked by the Ministry of Investment of Saudi Arabia (MISA) for the incorporation of a company in Saudi Arabia.
Steps to Register your Business in Saudi Arabia from UAE
Setting up a business in Saudi Arabia from UAE is not as easy as in the UAE, where company registration involves only one or two government departments. Starting a business in Saudi Arabia from UAE, includes several processes, and registration has to be made in several governmental departments. So it is time consuming and a lot of effort has to be made.
From the vast experience gained in setting up businesses in Saudi Arabia from UAE, we have formulated a 7 steps to set up your business in KSA:
- Register and get approval from the Ministry of Investment (MISA)
- Go for a commercial registration at the Ministry of Commerce
- Register you company with the General Organization for Social Insurance (GOSI), Ministry of Labor, and Ministry of Interior
- Procure a local address and office space
- Apply and obtain a work permit and residency visa,
- Get insurance for your General Manager
- Open a bank account in your company’s name
KSA Corporate Laws and Legislation
Saudi Arabia’s corporate laws and legislation is the legal framework to govern the corporations and businesses in the kingdom. It is mainly designed to govern the formation, operation and dissolution of companies in Saudi Arabia. Below we list the main corporate laws in the country:
- The 2022 Companies Law
- Franchise Law
- Trade Names Law
- Anti-Money Laundering Law (AML)
- Law of Commercial Agencies
- Commercial Papers law
- Bankruptcy Law
- The Law of Commercial Data
- The Law of Commercial Register
- The Chambers of Commerce Law
- The Law on The Authorities of The Ministry of Commerce
Below we list the key Government bodies Included in the Legislation of Company Law
- Ministry of Commerce
- Capital Market Authority (CMA)
- General Authority for Competition (GAC)
- Saudi Authority for Intellectual Property (SAIP)
- Zakat, Tax and Customs Authority (ZATCA)
How can Analytix Help you?
Starting a business by a UAE national in the Kingdom of Saudi Arabia is not an easy task. It requires the processing of correct documentation in both the countries. Failure of this can result in legal complications, lengthy processing time and even failure of your dream to register a business in Saudi Arabia from UAE. So seeking correct guidance from a business setup company can help you in the process. Analytix, the top business set up company in both UAE and Saudi Arabia can ease your business formation in Saudi Arabia. We with our years of experience in the field are well versed with the process involved in the company formation in Saudi Arabia by a UAE national. We hold office in both countries to help you process the documents. So reach out to us for any help regarding the business formation in Saudi Arabia.
Conclusion
Clear with how to start a business in Saudi Arabia from UAE? Hope this blog has been useful in helping you get an idea regarding how to process the business formation in Saudi Arabia as a UAE national. Feel free to reach out to us for any professional assistance regarding the business formation in KSA.
- FAQs
Frequently Asked Questions
If your question is not addressed here, please feel free to reach out to us. We value your inquiry.
Why should I expand my business in Saudi Arabia from the UAE?
Strategic location of Saudi Arabia, along with its prospering market, numerous opportunities in industries like construction, healthcare, technology, etc makes Saudi Arabia a great business destination for any foreigner including UAE nationals.
What are the legal requirements that have to be considered by UAE a businesses planning to operate in Saudi Arabia?
As a business looking to operate in Saudi Arabia, you have to register with Saudi Arabian General Investment Authority (SAGIA) or the Ministry of Commerce and Investment in order to start a business in Saudi Arabia. Also depending upon the business structure you are planning to start, you may need a local partner or sponsor in KSA.
What are the ways to conduct market research specific to Saudi Arabia from the UAE?
You can make use of local market reports, boost your connections with UAE business operating in Saudi, and engage with local industry groups.
What are the tax implications for UAE businesses planning to expand into Saudi Arabia?
As a UAE business planning to expand to Saudi Arabia, you have to be aware of the tax system of KSA including VAT regulations, corporate rates, and any double taxation agreements between both the countries.
Can you explain the steps involved in registering my UAE business in Saudi Arabia?
Inorder to register a business in Saudi Arabia from UAE, you have to obtain approval, get registered with SAGIA, or the Ministry of Commerce, secure a commercial licence, and get relevant approval and permits.
How can I navigate the culture of Saudi Arabia when doing business in the country?
By respecting local customs, understanding Islamic business principles, and building relationships through personal connections and trust building, you can navigate cultural differences in Saudi Arabia.
What are all the financing options available for UAE businesses expanding into Saudi Arabia?
One can consider local banking services, government grants, venture capital firms, and even can seek partnership with Saudi investors or financial institutions.
How can I be compliant with labour laws in Saudi Arabia when hiring employees for my company?
Be aware of labour laws and hiring processes prevalent in Saudi Arabia, understand employee rights and obligations related to working hours, wages, etc.
Is there any difference between Setting up GCC and Foreign company in Saudi Arabia?
GCC nationals are exempted from obtaining a licence from the Ministry of Investment Saudi Arabia (MISA) before setting up a company in KSA, while foreign nationals have to obtain a licence from MISA.
