Essential Documents You Need to Set Up a Business in Saudi Arabia

 

Setting up a business in Saudi Arabia can be a rewarding yet complex process. With the country's growing economy and its Vision 2030 initiative, many entrepreneurs are flocking to the Kingdom to take advantage of the business opportunities. However, navigating the legal and bureaucratic requirements can be challenging without the right guidance. At Capital International Group, we specialize in helping businesses successfully establish themselves in Saudi Arabia. Below, we outline the essential documents for Saudi business setup you will need to get your business up and running in the Kingdom.

1. Commercial Registration (CR)

One of the most important steps in establishing your business is obtaining a Commercial Registration (CR), also known as Sijil Tijari. This document officially registers your business with the Saudi Ministry of Commerce and Investment. The CR contains essential details such as your company’s name, ownership structure, and business activities. Without it, you cannot legally operate in Saudi Arabia.

To obtain your CR, you will need to submit the following documents:

• A completed application form.
• Proof of business name reservation.
• A copy of your Articles of Association (AOA).
• Valid identification for company shareholders.

2. Investment License

Foreign investors who want to set up a business in Saudi Arabia must first obtain an investment license from the Saudi Arabian General Investment Authority (SAGIA), now known as the Ministry of Investment (MISA). This license is required for foreign-owned companies to operate in Saudi Arabia and participate in various sectors, including retail, manufacturing, and services.

Key documents required for the investment license include:

• A business plan or feasibility study.
• Financial statements.
• Copy of the company’s Articles of Association.
• Valid passport copies for foreign shareholders.

3. Articles of Association (AOA)

The Articles of Association outline the rules, regulations, and internal structure of your business. It details important elements such as the company’s objectives, shareholder rights, and procedures for appointing directors. The AOA is a crucial document that is required not only for your CR but also for other approvals, such as obtaining an investment license or opening a business bank account.

4. Company Lease Agreement

Before starting operations, you must have a physical address in Saudi Arabia. The Ministry of Commerce requires that businesses provide a valid lease agreement for their office space or commercial property. The lease agreement must be registered with the Saudi Ejari system, which ensures all property contracts are legally binding and government-approved.

5. Zakat and Tax Registration

Every business in Saudi Arabia must be registered with the General Authority of Zakat and Tax (GAZT). Depending on the type of business, you may need to file for Zakat (a religious obligation for Muslims) or VAT (Value Added Tax). To register, the following documents are typically required:

• Commercial Registration (CR).
• Company’s Articles of Association.
• Investment License (if applicable).

6. Corporate Bank Account

A corporate bank account is essential for managing your business’s finances and is required for most legal processes in Saudi Arabia. To open a bank account, you will need the following documents:

• Commercial Registration (CR).
• Articles of Association (AOA).
• Valid identification for all authorized signatories.
• Company lease agreement.

Each bank may have additional requirements, so it’s a good idea to consult with multiple banks before making a decision.

7. Work Visas and Labor Permits

If you plan on hiring foreign employees, you will need to secure work visas and labor permits for them. The Ministry of Human Resources and Social Development (HRSD) oversees these processes. Required documents for work visas include:

• Commercial Registration.
• Investment License (for foreign companies).
• Passport copies and job contracts for employees.
• Medical reports and health insurance for employees.

8. Municipal License (Baladiya License)

A municipal license, or Baladiya license, is required for businesses that have a physical presence, such as retail stores, restaurants, or offices. This license ensures that your premises comply with local safety and health regulations. To obtain a municipal license, you’ll need:

• A valid lease agreement.
• Commercial Registration.
• Health and safety inspection reports (for certain industries).

Conclusion

Setting up a business in Saudi Arabia involves multiple steps and documents, but with the right approach, the process can be smooth and straightforward. Capital International Group is here to guide you through each stage, ensuring that you have all the necessary documents in place to legally and successfully establish your business in Saudi Arabia. Our team of experts provides end-to-end business setup services, from securing investment licenses to obtaining work visas.

For personalized assistance in setting up your business, visit Capital International Group and let us help you navigate the process with ease.

Contact us today to make your Saudi business vision a reality!