Question 1

7. Activate Chamber of Commerce (CoC) Account

Accepted Answer

Almost all of the Chamber of Commerce processes can be done online after the activation of the account. The Chamber of Commerce Account will be activated if it is signed by an authorized signatory who has a PoA from the parent company.

Question 2

8. Register with The Ministry of Labor

Accepted Answer

Registering with the Ministry of Labor (MoL) is required in order to be able to issue work permits and visas.

Question 3

9. Register with General Organization for Social Insurance (GOSI)

Accepted Answer

As a foreign company established in Saudi Arabia, you must comply with Saudization law as this is monitored by the General Organization for Social Insurance (GOSI) on a monthly basis. Generally, if you have 5 employees or less, you are only required to hire one Saudi national. Once you exceed 5 employees, you will have to follow the Saudization Nitaqat system based on your size and industry. After getting your General Manager's visa, and converting it to a residency (Iqama), you will not be able to hire any more non-Saudis before hiring at least 1 Saudi at any position the business sees fit. The employer must contribute 12% of the Saudi employee’s salary to GOSI and the employee contributes 10%.

Question 4

10. Get a National Address

Accepted Answer

You are required to register a physical office address to open a company in Saudi Arabia and the AstroLabs Riyadh coworking space serves as your soft landing and registered address for the initial three months as part of our setup package.

Question 5

11. Issue GM Visa

Accepted Answer

The GM Working Visa issued is a one-time entry to KSA that will then be transferred to a residence permit (Iqama).

Question 6

* Registration with General Authority of Zakat and Tax (GAZT)

Accepted Answer

MISA entities are subject to taxation in Saudi Arabia. Below is an indicative guide, but we recommend you seek advice from a tax lawyer to discuss your company’s particular requirements. ​ 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.   For a detailed guide to tax developments in Saudi, visit Deloitte tax@hand or for a more comprehensive guide, please refer to their 2019 International Tax Highlights and visit the official GAZT website.   An LLC is the most common form of legal entity chosen by foreign investors. The Ministry of Commerce and Investment (MoCI) issues a commercial registration certificate before the LLC is considered fully registered. After the incorporation, various governmental files and documents must be applied for in order for the LLC to be fully operational.   A branch operates on behalf of the parent company (foreign registered company) and has no separate legal existence in KSA. Registration of a branch in relation to issuance of the foreign investment license by MISA and the commercial registration certificate by MoCI follows the same general procedure as that of an LLC. The parent company of the branch has liability for the branch's activities that it undertakes in KSA. The paid-up capital for a branch does not confer limitation of liability as compared to an LLC. With regard to tax and a number of other matters, a permanent branch is treated in the same manner as a 100% foreign-owned LLC.

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