Many entrepreneurs seek to start a business in Saudi Arabia due to the various benefits provided by the country. The government’s active encouragement is further enhancing the phenomenon of business setup in Saudi Arabia.
This blog aims to help you understand the steps involved in starting a business in Saudi Arabia. We will also explore the sectors that are presently favourable for setting up a company in Saudi Arabia.
What is the Procedure for Company Formation in Saudi Arabia?
To complete the process of business setup in Saudi Arabia. You can follow the steps mentioned below –
Step 1 – Apply for an Investment Licence
Saudi Arabia General Investment Authority (SAGIA) is responsible for issuing investment licences in Saudi Arabia. You must remember the following points while obtaining the SAGIA investment licence.
- First, you must submit an application form to SAGIA. This can be done either offline or online.
- After application and approval, a Unique Identification Number (UID) will be assigned to you.
- The UID obtained in the above step is mandatory for two reasons –
- To register a company in Saudi Arabia and to obtain a business certification from the Federation of Saudi Chambers.
- To set up a corporate bank account for your business.
Step 2 – Draft the Important Documents
For company registration in Saudi Arabia, a set of important documents must be drafted and notarized. These documents are:-
- Corporate documents of your business, such as share certificates, Bylaws and Articles of Incorporation.
- Colour photographs of all shareholders and directors
- Approved Articles of Association document
- ID proofs of all shareholders and directors
- A copy of the license obtained from SAGIA
Step 3 – Publication in the Gazette
The next important step in starting a business in Saudi Arabia is publishing the following documents in the official gazette.
- Information about the AoA
- The name of your company
- The certificates approved by the authorities
Step 4 – Open a Corporate Bank Account
Any business conducting commercial activities must have a corporate bank account. This account must also be used for all fee submissions to the government.
Step 5 – Rent an Office Space
Renting an office space is mandatory for 2 reasons –
- Owning a corporate address is mandatory for carrying out business activities
- For legal reasons involving corporate address such as obtaining permits and delivery of legal notices (if needed) via mail.
Step 6 – Obtain a Commercial Licence
In order to complete the process of registering your company in Saudi Arabia, you must submit all the drafted and notarised documents to the Commercial Registry Department of the Ministry of Commerce and Industry.
Once you obtain the approval you can start the commercial operations of your business.
If followed diligently, these 5 simple steps will help you set up a company in Saudi Arabia. Now, let us understand the trending businesses in Saudi Arabia that have a steady growth.
Blooming Businesses in Saudi Arabia
Saudi offers a promising market for entrepreneurs who seek to establish businesses in the following sectors –
1. Food and Beverage Sector
Saudi Arabia is considered to be a travel hub in the MENA region. Good-quality food and beverages are on high demand because of the high influx of tourists from across the world. The market size of this industry is expected to reach 27.38 billion by 2029. You can capitalise on this demand to generate excellent revenue.
2. Fitness Sector
A large part of Saudi Arabia’s population comprises fitness enthusiasts. With the rising awareness about physical well-being, setting up fitness centres such as gyms, acrobats and yoga studios can attract valuable customers. Your business is assured of promising growth.
3. Construction and Civil Works Sector
Saudi Arabia is home to one of the finest architectural marvels in the world. The domestic demand for infrastructure is high, therefore the construction industry is growing at a steadfast pace which you can monetize on.
4. Consumer and Luxury Goods Sector
The MENA region is one of the most vibrant markets of luxury and consumer goods. Saudi Arabia stands out among its neighbours in terms of quality assurance. The market value of this sector is expected to reach an all-time high of USD 1926 million with an annual growth rate of 3.82% in 2024. Setting up a business that trades consumer and luxury goods will help you achieve a high ROI.
5. Renewable Energy Sector
The National Renewable Energy Program (NERP) was introduced by the Saudi Arabia administration to achieve net neutrality of carbon emission. According to this , the expected target of solar energy expansion is 40 GW by 2030. This is a great opportunity for your business to flourish in the renewable energy sector.
In line with the market trends of 2024, these are five of the best sectors where your investments are guaranteed high returns.
Saudi Arabia offers enormous opportunities for aspiring and motivated business enthusiasts like you. The incorporation process is simple and explains why you should consider setting up a business there.
Why Us?
Business Setup Worldwide (BSW) is a business setup consultancy with astounding experience and a successful clientele. Our experts will assist you in developing innovative business strategies for helping your business grow exponentially. Contact us today and book a free consultation with our experts. You are assured an answer to your simplest queries.
