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Company Formation Services in Saudi Arabia

With a vibrant and developing economy, Saudi Arabia has developed into one of the major global hubs in various industrial sectors and has facilitated the needs and requirements of various clients from different parts of the globe. This has made it one of the biggest global destinations in the world for employment as well as for starting various businesses. The company formation services in Saudi Arabia has proved to be helpful in attracting new investments and facilitated the growth of various new businesses.

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Over the years, the economy of Saudi Arabia has expanded exponentially due to the setting up of new economic as well as business opportunities in various different sectors such as Oil & Gas, Engineering, and Manufacturing and has opened up a gateway of new and unique opportunities for different clients across the globe. Initially, the economy of Saudi Arabia was overly dependent upon Oil & Gas sector for the development of the economy. However, over the past few years, the local administration in Saudi Arabia has put in increased efforts in diversifying the economy.


Some of the steps that one needs to incorporate for formation of various companies and organizations are as follows

Obtaining a Preliminary Distributor/ Primary Contact

The Distributor plays an important role in selling of various products and helps to generate a positive awareness about the company.

Registration of Unique Company Name

A Unique Company Name has to be registered which helps in increasing a greater Brand value regarding the firm or organization and helps to create a unique idea regarding the product.

Apply for License at SAGIA

Saudi Arabian General Investment Authority (SAGIA) is the governing authority that provides license for investment of a company or firm. This License is mandatory for registration of a firm or company in Saudi Arabia.

Approval & Legalization of Company Documents

The Company Documents are legalized and approved by governing authorities to ensure smooth operation of the firm. Some of the important documents include Trade License, Industrial License, Tax License etc.

Opening of Bank Account

A Bank Account has to be opened in order to deposit an initial capital amount for the registration of the Company.

Registration in Commercial Registry

A Commercial Register is basically database that collects the details of all companies registered in the nation. Before operation of services, it is quite important to register the Company with the Register.

Legal Structures of the Company

The following business types are accepted in the Kingdom of Saudi Arabia as per the law. These may change as per the prevailing regulatory and legal conditions. Please contact Helpline Group for an up-to-date estimate and data sheet on company formation in the Kingdom of Saudi Arabia.

  • General Partnership & Limited Partnership Company
  • Partnership Limited by Shares
  • Limited Liability Company & Cooperative Company
  • Variable Capital Company
  • Joint Stock Company
  • Cooperative Company
General Partnership & Limited Partnership Company

This is known as a group of company. There will be more than two partners in the management team. A limited partnership consists of at least one general partner who is liable for the debts of the partnership to the full extent of his assets.

Partnership Limited by Shares

In a Partnership Limited by Shares company, there should be at least one general partner and four limited partners, the interests of the limited partners consist of negotiable shares of equal value.

Limited Share Partnership Company in Bahrain

A limited liability company is a private entity formed by two or more partners who are liable for company debts to the extent of their contributed capital. The company may not include in its objects the conduct of banking, insurance or savings. Requirements are placed on the company in respect of audits, annual general meetings and filing of accounts.

A limited liability company or a joint stock company may be incorporated as a cooperative for the purposes of achieving specific objectives such as reductions in the cost, the selling price of certain products and services, and/or achieving improvements in their quality.

Variable Capital Company

Investment in Variable Capital Companies may be different according to the organisation’s Memorandum and Content of the Organisation. The investment may be improved either by further efforts from the current associates or by the entrance of new associates, and it may be decreased either by the withdrawal of associates or by a decrease in their investment.

Joint Stock Company

A joint stock company or corporation includes five or more investors who are responsible for the financial obligations of the organisation to the level of their investment participation. A Joint Stock Company may only be integrated upon the acceptance of the Reverend of Industry or upon the issuance of a Royal Decree.

Cooperative Company

A limited liability company or a joint stock company may be integrated as a cooperative company for the requirements of accomplishing particular goals such as achieving cost reductions, or achieving low prices for certain goods and solutions or achieving improvements in the overall quality. Investments in such cooperative companies are variable and it must be separated into stocks of equivalent value with the par value of each share.

Get in touch with Helpline Group today to take your goals further.

We at Helpline Group ensure that clients do not face any sort of unwanted hassles or issues while starting a company in Saudi Arabia. We have a highly experienced staff that is well versed with the various documentation process regarding formation of company in Saudi Arabia.