Amid Saudi Arabia’s remarkable economic openness and noticeable investment growth, establishing a foreign company within the Saudi market has become a golden opportunity for global investors. And because every journey has a beginning, the legal journey of a foreign investor starts with us at Asas through a series of well-structured legal steps—opening the doors to the Saudi market while providing stability and confidence in a promising investment environment.
First: Establishing a Foreign Company in Saudi Arabia
Setting up a foreign company in the Kingdom requires fulfilling a number of legal requirements, in accordance with the Foreign Investment Law and related regulations. The Ministry of Investment oversees this process, applying rigorous standards to ensure investments align with national interests. Key requirements include:
- Exclusion from Restricted Activities:
The business activity must not fall under the list of activities prohibited for foreign investment, such as oil exploration or military sectors. - Compliance with Specifications:
Products or services must align with both international and local technical standards recognized in the Kingdom. - Financial Details Disclosure:
The investor must disclose the beginning and end dates of the financial year for the foreign branch as part of the application. - Clean Legal Record:
The foreign investor must have no prior legal convictions, either within the Kingdom or abroad. - Compliance with Regulatory Conditions:
The investor is required to comply with all regulations and instructions issued by relevant authorities. - Alignment with Ministry Objectives:
The project must contribute to the economic goals of the Kingdom, such as employment generation, knowledge transfer, and enhancement of local content.
Second: Required Documents for Company Establishment
The procedural aspect is critical in this journey and begins with preparing essential documentation, including:
- Notarized Commercial Registration and Articles of Incorporation:
Must be authenticated by the competent authorities in the company’s home country and the Saudi Embassy. - Trade Name Reservation:
Through the Ministry of Commerce portal, ensuring uniqueness and legal approval of the name. - Investment Decision Letter:
A certified letter issued by the parent company owners indicating their intention to invest in the Saudi market. - Passport Copy:
Belonging to the appointed General Manager for the company’s Saudi branch. - Special Activity Approvals:
Required for regulated or sensitive activities, and must be issued by the relevant authorities. - Draft Articles of Association:
If the company is a limited liability company, a draft AoA is needed; if a joint-stock company, a draft Bylaw must be submitted. - Detailed Feasibility Study:
A certified feasibility study must be attached to the application, clarifying the economic viability and alignment with the Ministry’s objectives. - Certified Financial Statements:
The parent company’s certified financials, approved by an accredited accounting firm, proving its financial standing.
These steps are not merely legal formalities—they represent a gateway to a rich economic market full of growth and expansion opportunities. Today, Saudi Arabia is not just seeking foreign capital, but strategic partners who contribute to national transformation and the realization of Vision 2030.
The opportunities are here. The journey begins now.