Get Professional Assistance for Business in Saudi Arabia
The Kingdom of Saudi Arabia (KSA), is an Arab sovereign state in Western Asia constituting the bulk of the Arabian Peninsula and is fifth-largest state in Asia and second-largest state in the Arab world. The country is sharing border with Jordan and Iraq to the north, Kuwait to the northeast, Qatar, Bahrain and the United Arab Emirates to the east, Oman to the southeast and Yemen to the south.
The Country is the middle-east biggest economy. The KSA Government has established the Saudi Arabian General Investment Authority (“SAGIA”) to assist foreign investors in the approval process for operating in KSA and facilitating all services under one umbrella.As per Doing business report of The World Bank –Saudi Arabia ranks 94 for 2017 survey. IMC professionals are able to assist its client with any type of company formation in Saudi Arabia, trademark registration in Saudi Arabia and other recurring services for your business in Saudi Arabia.
There are several types of entities that can be incorporated in Saudi Arabia are as mentioned below:
- General Partnerships
- Limited partnerships
- Joint Ventures
- Partnerships Limited by Shares
- Limited Liability Partnerships (LLCs)
- Variable Capital Companies
- Cooperative Companies (Joint Stock Company)
Time Frame for Incorporation of Company in Saudi Arabia varies from depending on the type of entity selected. Each business type has its own advantages and disadvantages. IMC professionals estimate the time required for the process of Company formation in Saudi Arabia to be completed is 20-25 working days.
Below are the advantages of company formation in Saudi Arabia:
- A stable currency pegged to the US Dollar
- Stable interest rates
- Low taxes
- 100% foreign ownership of property and companies in certain industries
- Lower minimum capital requirements
- No restriction on repatriation of capital
- The ability for foreign investors to sponsor foreign employees
- Tax incentives if the company is registered in certain economic cities
- No currency exchange restrictions in KSA
- Substantial business opportunities stemming from a population with relatively high-income levels
- Prolonged political stability
- Strategic geographic location
Below are some of the important points in relation to Company Secretarial Compliance in Saudi Arabia:
- MOCI requires that all companies and establishments with capital that exceeds SR100,000 to maintain books of account which includes Daily Journal, General ledger, Inventory book – locally in Arabic in KSA.
- Financial statements should include auditor’s report, balance sheet, statements of income, cash flows and changes in the shareholder’s equity and notes to the financial statement.
- All records must be maintained and kept for 10 years
- The business location must be registered with the municipality of Riyadh with an identification code number.
- All entities must register for social security insurance. The employer must open a file with the General Organization for Social Insurance (GOSI).
- Preliminary approval from the relevant authorities
- In case of any changes in the constitution of the entities application need to be made to SAGIA along with prescribed fees.
The Entities in Saudi Arabia are required to prepare Accounts in local GAAP, in the Arabic language and denominated in the Saudi Riyals. Also, Computerised accounting systems are allowed, provided that they comply with the requirements of the MOCI and that Arabic printouts of the accounts.
IMC professionals can assist you with the entire bookkeeping and accounting services to your Saudi Arabia Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.
In Saudi Arabia, Companies are required to have annual independent audits. All the Joint stock companies and limited liability partnerships must appoint at least one independent auditor – who should be a certified public accountant member of the Saudi Organization for Certified Public Accountants “SOCPA” and licensed within KSA from MOCI.Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. IMC professionals can provide you auditing services as required by your business.
IMC is a cross border advisory firm focusing on the AMEA (Asia, Middle East and Africa) markets. We specialize in corporate advisory services, global mobility services, private client and family advisory, international tax, corporate finance, mergers and acquisitions, investment advisory and business support and outsourcing solutions. IMC has been operating in GCC for over 10 years. With a partnership in Saudi Arabia, IMC is closer to the customer with a better understanding of the Saudi Arabia Company Laws and Practices.