It does not take more than a working week to sort out each and every legal procedure to start a business in Saudi Arabia - Genius business centers in Riyadh have listed down the elements which require your keen consideration before starting all the legal formalities.
Type of business
The foremost thing is to decide the type of venture you are about to choose. There is various type of licenses required for a specific business. Whether you have chosen a professional, commercial or industrial license, you have to define the operations of your company. Each free zone has individual formalities for approval. If you are about to start a business in the field of jewelry, food trading, legal consultancy, or veterinary activities; further approval is required from a government department.
Ownership
In the free zones, you can enjoy 100% ownership of your company as a foreign investor, depending on the location and license. The clarity in selecting the type of business can help you in activities offered by each free zone.
Legal form
Certain rules are there regarding the formation of your firm depending upon the type and location as mentioned above. For an instance, if you have a dream of setting up your consultancy firm in Saudi Arabia, a sole proprietor is not permitted to start this activity, you can only open a branch of an existing company or serve as a stand-alone.
Trade Name
It is an extremely important part of all legal proceedings. It should ideally represent the nature of your services & products unless you are opening a branch of an existing company. There are several rules indicated by DED to take up the name of your firm.
Share capital
It is often decided in the Memorandum of Association of your company. Usually, you do not have to provide minimum capital right at the first moment of setup.
Premises
Now that legal things are finalized, finding an office is a major thing you should spend time on. In free zones, it is easy to find premises at the desired location suitable to your requirements and preferred amnesties.
Employees
A manager is mandatory to oversee the operations as per DED. Have a suitable manager ready before the approval and registration.
Local support
According to DED, it is obligatory to have a partner, sponsor, or local agent having a nationality as this acts as great support for various foreign nationals. If you are setting up your company in free zones, a local contract is enough to take your operations forward effectively. Regardless of nationality, the business hub of Saudi Arabia boats easier rules and regulations for foreign investors.
