Online Company Registration in Saudi Arabia - Through Enterslice

 

Online Company Registration in Saudi Arabia - Through Enterslice

 

 

Saudi Arabia is the world's largest oil producer and exporter. It controls the world's second-largest hydrocarbon reserves. In terms of its global standing, there are substantial business opportunities stemming from a population with relatively high-income levels. Due to the mobilization and proper utilization of resources, foreigners have interest in investing in Saudi Arabia market. In order to ease the procedures for foreign entities, the Government established the Saudi Arabian General Investment Authority ("SAGIA"). SAGIA assist foreign investors in the approval process for operating, obtaining a license and conduct other business affairs under one umbrella.


1. Limited Liability Companies: This type of entity is the most common source of investment in Saudi Arabia. Minimum one and maximum 50 shareholders are necessary. There no minimum capital requirement except for certain categories of SAGIA licensed companies which must have the required minimum capital. The LLC may not offer its participation interests (shares) for public subscription. It is managed by a sole director or a board of directors.

2. Joint Stock Company: This type of entity is equivalent to public limited companies. There are two types of JSCs: "closed" JSCs, which are unlisted JSC and "public" JSCs, which are listed as JSC-listed. Minimum of two shareholders and minimum of three and maximum of 11 directors. Is required for incorporation. The minimum capital requirement of SAR 500,000, except for certain categories of SAGA licensed companies which must have the required minimum capital. 25% of a JSC's capital must be paid up at the time of incorporation and the balance must be paid up within five years. JSCs are permitted to buy-back or mortgage their shares

3. Branches: In Saudi Arabia, all branches and TSOs must be licensed by SAGIA. Branches must have a minimum capital of SAR 500,000. It is considered as an extension of the parent company. Branches are not allowed to conduct promotion, marketing, and trading activities. An investor can use branches for a full range of activities permitted under the SAGIA license of the branch.

4. Technical and Scientific Offices: In this type of entity no minimum capital requirement. Their activities are limited to providing technical information and assistance regarding the foreign company's products to its Saudi distributor(s) and to end users of the products, studying and reporting on the market and conducting research.

5. Joint Ventures: Joint Ventures do not have any legal personality. They are not subject to registration formalities and cannot enter into the commercial register.

 

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