Saudi Arabia is rapidly becoming a prime destination for international businesses, thanks to its robust economy, business-friendly environment, and openness to foreign investment. However, establishing a business in the Kingdom involves navigating a series of specific legal and regulatory requirements.
The Updated Investment Law
Saudi Arabia’s forthcoming Investment Law, which will supersede the 2000 Foreign Investment Law, is crafted to align with the Kingdom’s Vision 2030 and its National Investment Strategy. Set to take effect in February 2025, the revised regulations aim to simplify processes and provide additional incentives for foreign investors. A significant change is the shift from requiring a foreign investment license (previously known as the SAGIA or MISA license) to a more flexible registration process with the Ministry of Investment (MISA).
Key Steps for Investors to Set Up a Business
- Registration with the Ministry of Investment
- Registration with the Ministry of Commerce (MoC).
- Chamber of Commerce Registration
- Obtain necessary work permits and visas from Ministry of Human Resources & Social Development Compliance
- Register with the General Organization for Social Insurance (GOSI) for Social Insurance management.
- Zakat, Tax & Customs Authority Registration – Register with the Zakat, Tax & Customs Authority (ZATCA) to fulfill your tax obligations, including VAT filing and corporate income tax.
- National Address Registration
- Obtain General Manager Visa & Iqama
- Government Portal Registration – Register with government portals such as Absher, Muqeem, and QIWA to manage employment activities, including visa issuance and Iqama renewals.
- Opening a Bank Account
Setting up a company in Saudi Arabia involves a structured approach, with each step ensuring compliance and facilitating smooth operations in the Kingdom. With the right guidance, international companies can successfully tap into this lucrative market.
