Saudi Arabia company formation is both expensive and difficult, because of complex bureaucracy, inconsistent regulations and varying licensing fees. However, Saudi Arabia company formation is a legal way to conduct business in the Kingdom and the Gulf Cooperation Council (GCC). The following information will help you determine whether Saudi company formation is the optimum corporate structure to fulfill your Middle East business objectives: |
| Advantages of Saudi Arabia Company Formation | |
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Saudi Arabia company formation is the optimum corporate structure for international entrepreneurs to conduct business in Saudi Arabia. A Saudi company can bid for local contracts, rent office premises, and obtain visas for staff. According to the World Bank's Doing Business 2008 Survey, Saudi Arabia is positively ranked at 23rd in terms of ease of doing business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. |
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Saudi Arabia company formation permits 100% foreign investment in most sectors. All foreign investment projects require a government license. |
3. |
The government-run Saudi Arabia General Investment Authority (SAGIA) provides incentives to encourage Saudi Arabia company formation. |
4. |
As part of its programme to develop non-oil industries, the government provides various tax and other incentives for foreign investors. For government-approved projects with at least 25% Saudi participation, foreign investors in agricultural and industrial ventures are eligible for a 10-year exemption from tax. |
5. |
High oil prices are driving economic growth in the Kingdom, presenting opportunities for investors considering Saudi Arabia company formation. |
6. |
Following a Saudi Arabia company formation, it is easy to open corporate bank accounts all over the world. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services. |
| Disadvantages of Saudi Arabia Company Formation | |
1.
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Saudi Arabia company formation takes almost two months to complete. Saudi Arabia is ranked poorly as the world's 60th-freest economy in the Heritage Organisation's 2008 Index of Economic Freedom, and scores at 30% in terms of investment freedom and capital flows. The Index of Economic Freedom measures of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. |
2. |
Under Saudi Arabia's Foreign Investment Law, foreigners are excluded from investing in certain sectors, including: |
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Only joint ventures with at least 51% Gulf Cooperation Council (GCC) ownership interest are permitted to export duty-free to other GCC countries. |
4. |
The minimum capital requirement for a Saudi limited liability company is SR500,000 (US$133,000). |
5. |
Saudi Arabia ranks poorly as the 79th least corrupt country in the world, according to the 2007 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. |
6. |
Saudi Arabia is poorly ranked as the world's 35th most
competitive economy in the
World Bank's Global Competitiveness Report 2007-2008. |
Other Information |
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Refer to the following links to read more information on Saudi Arabia company formation: |
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Contact Us |
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For more information on Saudi Arabia company formation, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120. |
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FEES SCHEDULE Year 1 incorporation US$6,940* Annual costs from Year 2 US$2,500* Nominee director fee Company de-registration * Depending on corporate structure and professional services required. |
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