THINGS TO DO AFTER FORMING YOUR COMPANY IN SAUDI ARABIA

The registration of a company in Saudi Arabia accompanied by obtaining the Commercial Registration (CR) from the Ministry of Commerce and Industry (MOCI) is only the beginning of the process of creating an operational corporate tool. The post-commercial registration requirements include multiple steps such as registering, linking, and activating the company with all government authorities for labor, payroll, office address, etc., setting up your corporate bank account, hiring staff, Intellectual Property protection, tax, accounting, and bookkeeping processes for your Saudi business. We have listed the five (5) main steps to consider post CR processing that is essential for operating your Saudi business.

1. GOVERNMENT REGISTRATION & ACTIVATION

Once your Saudi company Commercial Registration is completed, the company will need to register, link, and activate all company accounts with the appropriate Saudi Government departments. Some of the main authority’s activations include the Ministry of Human Resources, Labor, General Organization of Social Insurance, Zakat, Tax and Customs Authority and Chamber of Commerce, etc. If your Saudi company is not registered with all the government authorities (post Commercial Registration process), this may limit or prevent you from being able to do business. Many providers assist with the issuance of the company Commercial Registration only and do not assist or understand the formalities of completing and activating your company with all government authorities.

2. APPLY FOR A CORPORATE & PERSONAL BANK ACCOUNT

Once your Saudi company setup is completed, you will need a corporate bank account to be established as soon as possible to invoice suppliers and receive payments from customers. The process of both corporate and personal account opening includes the identification and verification, as well as the necessary compliance procedures. The bank requires copies of all essential corporate documents to compare them with their originals to ensure eligibility and authenticity. All copies of documents must also be stamped to confirm their authenticity. In addition to corporate banking, it is advisable to have a personal bank account for the General Manager of your Saudi Arabia company to pay or receive salaries and initiate labor processes under the company.

3. HIRE STAFF

Finding talented individuals for all business types is not easy in any jurisdiction. Although while building your business in Saudi Arabia, you should also be familiar with the local peculiarities of the employment visa management process. Above the Saudization rules, the foreign employees might enrich your team.

Those who wish to be employed in Saudi Arabia require a ‘Saudi Work Visa’ which will permit them to live and work in Saudi Arabia full-time. To proceed with the Saudi work visa, you must already have a signed job offer letter of your new employee, and you will be required to provide the contract of employment, as well as an official invitation and their medical reports. Next step is to apply and complete the visa (if an employee is recruited outside of Saudi Arabia), Iqama, and Absher process (an official Saudi ID document) issued by the Saudi government. Note that it is not possible to have employees working under your Saudi company without their Iqama and Absher processes being fully completed. You will need the support of a registered corporate services provider to complete the visa, labor, and immigration processes to ensure your new hires are able to work legally as per Saudi Arabia Labor law.

4. INTELLECTUAL PROPERTY (IP) PROTECTION

Saudi Arabia has its first national strategy for safeguarding intellectual property to foster creative thinking and innovation. The Saudi Authority for Intellectual Property (SAIP) seeks to make sure patent registrations are completed in a year, and aims to encourage innovators to incubate their ventures in the country. If the individual is not part of the World Intellectual Property Organization (WIPO), Saudi Arabia requires a local registration of your trademarks and patents.
The government of Saudi Arabia recently established SAIP as the sole capable IP authority in Saudi Arabia in recognition of the strategic importance of IP in enabling the nation to realize its goals and the significant role that IP rights play in stimulating business growth, competitiveness, and national economic performance.
The development of an innovative culture in Saudi Arabia is advancing due to this significant step. IP knowledge is increasing, and businesses are growing because of efforts by SAIP and other government agencies to create a welcoming investment environment and a more diversified and competitive national economy.
It is important that your Saudi company IP is protected as part of your critical growth. It is worth taking the necessary steps towards registering and protecting your company property.

5. TAX REGISTRATION, ACCOUNTING & BOOKKEEPING

Saudi Arabia is a country with a wide and multi-layered system of taxes and reporting. Companies might be subject to Corporate Tax (CT), Value Added Tax (VAT), Capital Gains Tax (CGT) and Withholding Tax. The above-mentioned defines the obligation of the legal entity to maintain the records of account and organize a bookkeeping and tax reporting process of their commercial activity. The bookkeeping process can be organized by in-house team members as well as outsourced specialists, which is often cost-effective and rational.

TAKEAWAY

There are various procedures and requirements that you need to prepare and take into consideration for your Saudi Arabia entity post-commercial registration. From selecting the right structure for your company to drafting the correct documentation, to office registration, visa services, banking support, accounting, bookkeeping, payroll, and tax services, Creation Business Consultants will help you throughout the entire process. Our team of experts will leverage our experience to help simplify the process while simultaneously providing you with all the details needed to set up your company in Saudi Arabia and the GCC. Contact a member of our team for your free expert consultation on your Saudi Arabia entity, email [email protected] or call Saudi Arabia +966 54 511 2494 UAE +971 4 878 6240 today.

Scott Cairns,
Managing Director