Starting a business in Saudi Arabia offers immense opportunities for growth, but the process can vary significantly for foreign investors.
While it is possible to carry out the necessary procedures for establishing the business all by yourself, enlisting the help of a consultant can significantly simplify the process and make it more efficient.
In this blog, we will explore how to set up a business for GCC citizens with the help of a consultancy, highlighting the unique aspects of registering a business and obtaining the necessary permits and licenses.
Let’s see the steps.
- Issuing Power of Attorney (PoA)
The first step in establishing a business in Saudi Arabia is to issue a Power of Attorney (PoA). If you are not physically present in the country, appointing a representative (often a business consultant or trusted partner) is necessary to handle the legal and administrative tasks on your behalf.
With DuVolks, we can help you with this process, ensuring that all necessary paperwork is accurately completed and submitted to the relevant authorities, making the whole process smoother.
- Tradename Reservation
One of the first administrative tasks is the tradename reservation, which is required to ensure that your business name is unique and available for use in Saudi Arabia.
The name must be submitted in Arabic, as all official business names in the Kingdom must comply with this requirement.
The Ministry of Commerce handles the reservation process, and once approved, it will reserve the name for your LLC.
- Selecting the Business Activities
Before moving forward, you will need to define the business activities your company will engage in. In Saudi Arabia, businesses are categorised into specific sectors, each governed by distinct rules and regulations. It’s essential to choose the right business activities that align with your goals while ensuring compliance with local laws.
- Drafting and Submitting the Articles of Association (AoA)
Once the business activities are chosen, you need to draft the Articles of Association (AoA), which define the internal structure of your company, shareholder roles, capital contributions, and profit-sharing mechanisms.
This legal document must be submitted to the Ministry of Commerce for approval. With DuVolks’ expertise, you’ll have the right AoA drafted in accordance with Saudi law, streamlining the process for you.
- Issuance of the Company Registration Certificate (CR)
After your AoA is approved, the next step is to obtain the Company Registration Certificate (CR) from the Ministry of Commerce. This certificate is vital, as it officially registers your LLC as a legal entity within Saudi Arabia.
The CR contains important details, including the company’s legal structure, registered address, business activities, and management information. You require this certificate for opening bank accounts, obtaining permits, and signing contracts.
- Issuing Saudi Residence (Iqama) for GCC Citizens
While GCC citizens can enter Saudi Arabia freely, they still need to obtain an Iqama, or residence permit, if they intend to live and work in the Kingdom.
The Iqama is necessary for all legal residents, even those from GCC countries. You will also require it for business ownership, employee hiring, and accessing government services.
You can obtain the Iqama through the Ministry of Interior. Also, you should link it to the Company Registration Certificate to ensure your business is legal in Saudi Arabia
- Getting a New SIM Card Under Saudi Iqama of GCC Citizen
Once you acquire the Iqama, the next step is to obtain a Saudi mobile SIM card. This card is essential for staying connected with clients, government authorities, and suppliers. Mobile communication is key for managing daily business operations in Saudi Arabia.
You can purchase a SIM card from any major mobile provider in the Kingdom, and it will be linked to your Iqama. This step ensures that you have the necessary communication tools for conducting business in Saudi Arabia.
- Activation of Absher Account After Enrolling Biometric Data
The Absher platform is an essential government portal for managing a range of services related to residency, employment, and business operations.
To activate your Absher account, you must first enrol your biometric data. This step is necessary for accessing government services such as visa renewals, Iqama updates, and labour services.
Once activated, the Absher account will allow you to manage your business-related activities and legal documentation electronically. It is a key tool for ensuring compliance with Saudi Arabia’s residency and business regulations.
- Linking Saudi Residency of GCC Citizens with CR
Once you acquire your Iqama, you must link it to your Company Registration (CR) to ensure that your LLC is recognised under your legal residency status.
This is a crucial step, as it validates your business’s legal existence and confirms that you have the authority to operate it within Saudi Arabia.
The Ministry of Commerce and other government portals facilitate this process, ensuring your company is fully compliant with local laws.
- Activation of Chamber of Commerce Membership
In order to register, all LLCs in Saudi Arabia must become members of the Chamber of Commerce.
You require this membership to access government services, obtain trade licenses, and conduct business operations.
The Chamber of Commerce provides valuable resources, such as networking opportunities and certificates of good standing, which you often require when dealing with clients, suppliers, and partners.
Membership activation is typically straightforward for GCC citizens, and it is one of the final steps in setting up your business.
- Activation of Government Portals
After registering your company and becoming a member of the Chamber of Commerce, you must activate various government portals to ensure full regulatory compliance.
Key platforms include:
- Qiwa (for labour and employment services)
- GOSI (for social insurance)
- ZATCA (for tax services)
- SPL (for Postal and National Address services)
- Muqeem (for Immigration department Services)
- Mudad (for WPS Services)
These portals allow you to manage employee data, taxes, and other critical business functions. With DuVolks, you will have expert guidance to activate all the necessary portals quickly and efficiently, ensuring smooth operations for your business.
- Renting a Business Facility
Whether you need an office, workshop, store, warehouse, or factory, renting the right business facility is an essential part of setting up your operations.
However, it is important to find the right location that meets your business needs and ensure compliance with zoning laws and other regulations. Make sure that you draft accurate lease agreements and secure the most suitable facilities for your business.
- Opening a Bank Account
Opening a business bank account in Saudi Arabia is essential for managing finances and conducting transactions. The process requires submitting your Company Registration Certificate, Iqama, and other relevant documents to the bank. Saudi banks offer a range of business banking services, including corporate accounts and international banking options.
- Issuing Baladiya (Municipality) License for the Facility
Finally, you need to obtain a Baladiya (Municipality) license for operating your business facility. This license ensures that your premises meet all local safety, health, and environmental standards.
You must submit the application for a Baladiya license to the local municipality, and it is one of the final steps in setting up your business.
In a Nutshell
Setting up a business in Saudi Arabia as a GCC citizen is a relatively straightforward process, compared to that of foreign investors, thanks to the more simplified legal framework. However, it’s essential to understand and follow the necessary steps to ensure that your LLC is legally registered and compliant with Saudi regulations.
With DuVolks, you can streamline the setup process, ensuring that every detail is handled with expertise and efficiency. From obtaining necessary licenses to securing the right business facility, DuVolks is your trusted partner in establishing a successful business in Saudi Arabia.
