Foreign investors have a number of vehicles to choose from to invest in Saudi Arabia. The most common type of structure used is a limited liability companies (LLC’s).
Limited Liability Company (LLC)
The most common form used by foreign investors is a LLC. Subject to the business activity of the foreign investor the minimum share capital which must be deposited into a local corporate bank account is SAR50,000. The shareholders in LLCs no longer have potential personal liability if losses reach 50% of the capital in the company. GCC Solutions provide a turnkey services for investors wanting to incorporate a LLC in Saudi Arabia.
Once the commercial registration for the company in Kingdom has been issued by the Ministry of Commerce and Industry (MOCI) it is mandatory to register with the below government authorities:
GCC Solutions have a KSA team dedicated to government liaison services to complete the registration with all government stakeholders as required.
Branch
Branches are commonly used by foreign companies wanting to do business in KSA. The branch is not a company or independent legal personality but the operation of an overseas legal entity in Saudi Arabia. Therefore, it cannot enter into contracts in its own name but instead via the parent. One of the disadvantages of a branch is that it cannot conduct promotion, marketing or trading activities. Furthermore, for any foreign investor wanting to contract with government clients it is a condition that they have a local entity (such as a LLC). A branch generally takes less time to establish than a LLC.
GCC Solutions have a dedicated in country team who will incorporate branches on behalf of the foreign investors.