Saturday, July 20, 2024



Types of a company to set up in Saudi Arabia and their requirements

Saudi Arabia is one of the fastest-growing economies in the world. The government of Saudi Arabia offers numerous facilities to domestic people and people around the globe to set up a company.

Setting up companies in Saudi Arabia is highly profitable. Still, the company owners need to align their ideas and services according to the rules and regulations of the country.

Subsidiary company:

The LLC or Limited Liability Company is one of the most common types of company and investment for foreign businesses wanting to enter Saudi Arabia. Besides, setting up company in Saudi Arabia associated with subsidiaries is easy.

If you want to establish an LLC, you will need a minimum of SR 500,000. Also, a minimum of 2 to 59 shareholders needs to be there. The company needs to be represented and managed by one or more managers.

Also, no Board of Directors is there; the shareholders often provide a Board and several other management arrangements in the Memorandum of Association. In case there are over 20 partners, the company needs to establish a ‘Board of Controllers’. There is no need for a Saudi partner as there is a legal limitation on foreign ownership percentage.

If you are unsure about your doings, get in touch with Company Hubs, as they have the best experts who will help you to set up your company efficiently.

Branch office:

If you want to start a business in Saudi Arabia, you must know that foreign companies can register a wholly foreign-owned Saudi branch office by getting the requisite license. With the scope of the license, engagement within the commercial activity can be done by the branch office. The parent company must assume complete liability for every activity the branch office considers.

The company branch must deposit an amount equal to the capital needed for the subsidiaries with a local bank. Then, the amount will be blocked until the registration certificate is issued for the brand by the Ministry of Commerce and Industry. The company owners will need at least 500,000 SAR capital. There is no need for Articles of Association to be approved for a branch office.

Representative office:

The Saudi Arabian law allows the representative offices in the form of TSOs (technical and Scientific Offices) and TCRs (Temporary Company Registration). The TSOs are mostly the primary liaison offices for manufacturers for providing technical support to the local market through a distributor. On the other hand, TCR is a short-term general business established in need of a particular government contract. The TSO only serves as a liaison between the local market and a foreign country. A TCR, on the other hand, can take part in the contracted work operation, but it may not engage in any other kind of solicitation or general promotion of its businesses or businesses.

The TSO starting a company in Saudi Arabia need to know that they cannot engage in earning revenue or commercial activities. It offers users and distributors information regarding technical research, market, and products.


Saudi Arabia is the land of opportunities for people wanting to open a company. But these people must align their services and registration process according to the government of Saudi Arabia. Efficient planning is necessary, and the goals need to be clear right from the beginning to have a successful future.

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