The Kingdom of Saudi Arabia is popularly known for its massive oil industry. Moreover, it is popularly known for being the largest free economy in the MENA region. Furthermore, the kingdom is known to hold a share of almost 28% of the total GDP of the Arab world. Also, the country boasts easy access to multiple export markets that cover Europe, Asia, and Africa. Thus, the process of company formation in Saudi Arabia is greatly sought after nowadays.
It should be noted that empowering your business success in KSA is not as easy as it seems. Therefore it is greatly recommended to seek some professionally sound services in KSA to make sure that you are on the right track to make the much-needed corporate difference.
Entrepreneurs, wherever they are, always have an exciting life. However, if you are in KSA, then there is an unlimited plethora of company formation opportunities for you to explore. KSA is referred to as the “young and wealthy community”. Therefore, if you have an exciting business idea and you are in KSA, waste no time to implement it and establish it to relish its fruit.
What reforms have nudged the process of Company Formation in Saudi Arabia?
The Kingdom of Saudi Arabia offers the highest level of safety and security for all kinds of entrepreneurial setups. Also, it has a politically stable environment that allows companies to grow significantly. Apart from that, owing to the low energy cost and 100% foreign ownership, it offers a thriving corporate climate that attracts a large number of entrepreneurs from all over the world.
Therefore, the kingdom has realized these avenues and made some fundamental reforms to further facilitate the entrepreneurs who wish to explore their options of setting up their companies in KSA. These fundamental reforms include the following:
- A one-stop system simplifying and easing business startups
- Protection of minority investors
- Simple and easier Enforcement of contracts
- Easier availability of credits through new insolvency law and secured transactions law
- Online platform for construction permits
- Cross-border trading and investments
- Easy resolution of insolvency and financial restructuring
- Streamlining the availability of power
Which sectors are promising for a new Company Formation in Saudi Arabia?
Undoubtedly, the high living standards, along with a young, entrepreneurial society are boosting the domestic demand. Owing to this, various business sectors are offering immense avenues of success and growth possibilities in the KSA now.
Following are some lucrative sectors for doing business and setting up a company in Saudi Arabia.
- Tourism and Hospitality
- Steel Manufacturing
- Engineering and Technology
- Real Estate
- Lubricants, Glass and Plastics
- Healthcare and Pharmaceutical
- Financial services
- Media and Entertainment
Types of Company Formation in Saudi Arabia
It goes without question that the process of company formation in Saudi Arabia isn’t going to happen just like that. The process of setting up a company and its operations came into existence on the 2nd of May 2016, under the NCR which refers to as the “New Companies Resolution”. According to this resolution, there are five company forms that are available for both local and foreign businesses.
These essentially include the following:
1- Limited Liability Company – LLC
This is the most common form of company formation in Saudi Arabia. The setup offers minimum liability for the company owner. Moreover, this form of a company is not permitted to hold more than 50 shareholders.
2- Joint Stock Company – JSC
This form of company setup involves the division of capital into shares of equal value.
3- Single Member Limited Liability Company – SMLLC
This setup allows the sole owner to be in charge. He/she holds all the company shares but the owner cannot own more than one SMLLC.
4- Limited Partnership Company – LLP
Lastly, the LLP is a partnership company where some or all partners have limited liability with elements of partnerships and corporations.
Tips to Choose Trusted Consultants of Company Formation in Saudi Arabia
In this blog, we take a more detailed look into how to scrutinize the market while exploring your options for getting in touch with the most reliable consultants for company formation in Saudi Arabia. Some of the most crucial guidelines include the following:
1- Good reputation
First and foremost, a consultant’s reputation is all that he has. Therefore, there is no harm in scrutinizing your choices before you make the final decision. Ask relevant people or go online and do your own research.
Furthermore, make sure to check all the legit sources like Facebook or Google+. These are the only platforms where people are allowed to leave honest and clear reviews. Also, it is almost impossible to remove any negative reviews from here.
2- Effective Communication
Secondly, communicating directly with consultants is the most effective and appropriate way to find out about the needs and solutions needed by the business. Moreover, from the communication, you are better able to judge if the company formation consultant is experienced, responsible, and trustworthy.
The company formation consultants that you are looking for must be very proactive and ready to work on your case right away. They should be able to see you as a priority and be able to connect with you within 24 hours of you reaching out to them.
In addition to that, it is imperative for their team to respond to your emails and phone calls for efficient coordination. An unresponsive company formation consultant is not reliable and is the last thing you would ever want during your critical hour of need.
4- Fair Price and Quality Work
Notably, the process of company formation in Saudi Arabia is known to have a clear and concise outline of its fee and billing structures. Hence it is usually very simple for their clients to understand the estimated fee for their services.
Such consultants are always regarded as the most articulate and well-trusted. They might not be the cheapest ones around but they definitely might be the best ones out there for you.
In conclusion, if you are looking for reliable consultants for Business setup in KSA, please feel free to refer to GCC Solutions. Our professionally sound counsellors and advisors help you best navigate the avenues of setting up your business in this region. Schedule a consultation today. We look forward to hearing from you.