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How Do Subsidiary Companies Get Registered in Saudi Arabia?

In any industry, it has become easier to invest and start a business in Saudi Arabia. It has the potential to grow and offer back to the growth of the nation. Some potential business owners may be intimidated by the prospect of registering a business in another country, but the process of foreign company registration in Saudi Arabia is straight forward. Let's look at the steps to register a subsidiary company in Saudi Arabia.

  1. Obtain an Investment License

Getting an investment license from SAGIA (Saudi Arabia General Investment Authority) is the first step towards starting a business. This license is the key to setting up companies in Saudi Arabia. You can carry out all the processes online or offline as per your preference.

  1. Notarise the Business Documents

Notarising valid business documents is the next step. You can notarize the documents online or do them offline as per your preference. Once you prepare the AoA (Article of Association), it's time to notarise and get approval from the officials.

The documents you need to submit are

●       Copies of ID and passport copies of the witness of the business

●       The signed conscience of all the involved shareholders

●       Photos of the involved partners

●       The original AoA document

●       SAGIA license proof

●       AOA and license of all the shareholders

  1. Publish the Business Details in the Gazette

The gazette publication will have all the essential details like the name of your business, approved documents, AoA details, etc., which are vital for the company's approval to set up in Saudi Arabia. This publication is essential and acts as a proof of business. In this regard, Company Hubs will ensure that all the details and documents are taken care of properly during submission and further process.

  1. Open a Bank Account

Proof of your financial stability is crucial to showcase your ability to do business in Saudi Arabia. Having a bank account in Saudi Arabia containing the appropriate funds is one of the mandatory criteria to be eligible for setting up a company. It will also help you manage the various transactions you might need to do in setting up a business in KSA.

  1. Decide on a Location

When you undergo foreign company registration in Saudi Arabia, you should decide on office space and a proper address for the business you want to start. A dedicated office space might get you approved and make the registration process more manageable.

  1. Register with the Chamber of Commerce

Once you obtain the commercial certificate after verification from the Ministry of Commerce and Industry,  you are ready to proceed with your business. The final process is to get your membership registration done in the Chamber of Commerce.

Conclusion

It is easy to set up a foreign company branch in Saudi Arabia as it requires only one shareholder and one director. The best advantage is that your private funds won't be affected if there is a liability. Once you establish a subsidiary business, many other doors, like joint ventures, will be open for you to try.


 

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