If you want to start a business and build your brand in Saudi Arabia, here is step-by-step guidance on how to do it.
Establishing a Brand in Saudi Arabia
The following actions are necessary if you decide to launch your brand in Saudi Arabia:
1. Identify the nature of your business.
Identifying the activity of your brand is the first stage.
You need to mention the procedures that your company will follow in the application you file to register your trademark.
This information will assist you in identifying the kind of business that is appropriate for this undertaking. This guide also includes a list of several business kinds in Saudi Arabia.
2. Fill up an application for investments.
You need to apply to the Saudi Ministry of Investment if you are a foreign investor.
It is the entity that authorises and oversees foreign investors’ licenses.
The application will contain financial information about your commercial activities in Saudi Arabia together with facts about your organisation and operation.
3- Provide your company’s by-laws
The Saudi Ministry of Commerce must receive your company’s by-laws for you to receive permission and documents.
Following that, you may get a tax number and finish your commercial registration.
4- Reserve the company name
By going via the Saudi Business Centre and reserving the name you choose for your business.
Applying with the unique URL and getting approved completes the reservation procedure.
5- Establishing the commercial registry
To ensure that your business is legitimate and permitted, you must file for registration with the Saudi Ministry of Commerce after issuing the commercial registry for your mark.
6- Register the national address
Upon registering with the National Address, your business will be eligible for the best commercial and government services.
7- Registration with the relevant departments
After completing the preceding procedures, you need to sign up for these circles:
- General Organisation for Social Insurance.
- Saudi Zakat, Tax and Customs Authority.
- Ministry of Human Resources and Social Development.
It is crucial to understand that different entities have different registration criteria and processes, so before applying, you must be aware of all the paperwork needed and the registration steps.
8- Creating a bank account
Since banks will handle all of your business’s financial activities, opening a bank account for your brand is a logical step.
Ninety days from the day you receive the commercial registration certificate is the time frame you have to own the bank account.
Saudi Arabian Companies’ Categories
The kind of business you plan to start will dictate the kind of company you launch when you begin your brand. The following categories of businesses exist in the Kingdom:
1- A Joint Liability Company
It is a basic entity firm, consisting of two or more individuals who share equal liability for all business debts.
2- Limited Partnership Company
This corporation has a limited partner who has limited responsibility to his own investments and at least one general partner who has unlimited personal liability.
Limited partners are solely in charge of making investments in the company; general partners oversee operations and make all significant decisions.
3- Joint-Stock Company
The investors in joint-stock corporations hold a portion of the company based on the number of shares they possess and can purchase or sell shares.
These businesses are typically founded to provide dependable funding to businesses through pooled investment from shareholders.
4- Simple Joint Stock Company
Compared to conventional joint stock corporations, these entities—established under the new corporations’ Law—are more adaptable and have less complicated criteria.
A single person can form a joint stock company, eliminate limitations on the number of directors on the board, give bonuses to management, and issue several share classes.
5- Limited Liability Company
One of the most popular forms of corporation as it shields company owners’ assets.
The responsibility of the business owners, if the firm faces lawsuits, limits the amount of capital they provide.
Read more about The Steps Entailed with Establishing a Company in the Kingdom of Saudi Arabia
