How to Expand into Saudi Arabia
Find all the information and requirements you’ll need to expand your business into Saudi Arabia. There are 3 main stages to setting up a legal entity in Saudi including 16 steps to complete the full process. AstroLabs acts on your behalf to navigate this complex and time-consuming process, managing third parties and ensuring you are aligned with all requirements needed to help your company expand into the Kingdom quickly and seamlessly.
This stage is the prerequisite to any of the following stages. It provides your foreign company permission to own a business in Saudi Arabia, through the MISA investment license, and to gain legal registration of that business through Commercial Registration.
Applying for MISA License
Drafting of the Local Articles of Association
Commercial Registration (CR) Issuance
Preparing of Required Documents
Attested Trade License of the parent company
Article of Association (AoA) of the parent company
Audited financial statement for the last fiscal year of the parent company
Passport copy of the assigned General Manager of the Saudi entity
In order for your legal entity to be authorized to hire people, there are certain steps that must be taken such as registration with the Ministry of Labor (MoL), and the General Organization of Social Insurance (GOSI). This stage would also allow your General Manager (GM) to have a one-time GM visa issued, allowing them to travel to KSA.
Chamber of Commerce (CoC) Registration
Registration with General Authority of Zakat and Tax (GAZT)
20% tax on net profit for the portion of the company owned by non-Saudi entities
15% VAT (starting July 2020)
A KSA company that has both KSA/GCC and non-KSA/GCC shareholders is subject to corporate income and Zakat (2.5% on the adjusted net profit or adjusted net asset value (Zakat base)) on a proportionate basis.
Registration with Social Insurance (GOSI)
GM Visa Issuance
This is the last stage of the process that will allow your General Manager to become a resident of Saudi Arabia. This includes all the required steps from completing a health check, acquiring health insurance, Muqeem registration, and the issuance of residency. Upon the completion of this stage, the GM can then start the process of opening a bank account for the company.
GM Visa Transfer to Iqama (Residency)
Opening a Bank Account
AoA of the parent company
A document authorizing the GM to open and manage the bank account (if not mentioned already as an authority in the AoA of the local company)
The AoA of the local company
ID copy of the GM
Some banks require an in-person visit to the local company’s office
Some standard forms and applications from the bank