To start a company in Saudi Arabia, businesses must follow a structured legal process to comply with Saudi business licensing regulations. The key legal requirements include registering with the Ministry of Commerce, obtaining a Commercial Registration (CR), and securing a business license from the Ministry of Investment of Saudi Arabia (MISA).
A foreign business must determine its legal structure, such as a Limited Liability Company (LLC) or a Branch of a Foreign Company. Certain sectors, such as finance and healthcare, require additional approvals from sector-specific regulatory authorities.
Businesses must also register for Value Added Tax (VAT) with the General Authority of Zakat and Tax (GAZT) and comply with Saudization (Nitaqat program) requirements, ensuring a certain percentage of the workforce consists of Saudi nationals. Employee contracts must adhere to Saudi labor laws, and businesses should register with GOSI for payroll and employee benefits compliance.
To simplify this complex process, many companies seek assistance from corporate formation consultants in Saudi Arabia. Massar Business Solutions provides end-to-end support, from business incorporation to regulatory compliance and operational management.
