Statistics show that Saudi Arabia is among the twenty best economies in the world, therefore, they are part of the G20. Saudi Arabia has the greatest economy in the Arab world.
In terms of ease of doing business, Saudi Arabia is ranked 92nd among 200 economies in the world according to the World Bank ranking, but this does not mean that the country is not friendly to investors. In 2016, the Saudi government declared its vision for Saudi Arabia by 2030 to reduce the country’s dependence on oil and expand its economic resources.
The authorities are encouraging entrepreneurs to start their businesses in Saudi Arabia. Exports and manufacturing usually receive a lot of support from the government, especially in terms of acquiring land on which to build a factory.
If you open such a business in a free trade zone, of which there are several in the region, it is exempt from import and export duties, commercial taxes, building, and property license fees, land tax, and restrictions. for the transfer of capital invested in the zone.
If you are interested in starting a business in Saudi Arabia, you must be prepared to abide by the very strict rules and regulations of the country, especially if you are a foreign investor. Here are the steps you must follow if you want to start your business in Saudi Arabia;
Commencing a profitable business in Saudi Arabia as a foreigner. Step one: choose the industry and type of business you want to create
The first step you need to take if you want to start a business in Saudi Arabia is to choose the industry and type of business you want to do.
When choosing the industry and type of business that you want to open in Saudi Arabia, you should take into account that there are restrictions on the business that a foreigner can establish in the country, and this depends on your nationality. – the headquarters of the parent company, if you intend to establish a subsidiary of the company, and the existence of existing trade agreements or relationships.
Step two: decide a name for your business
The next step to starting a business in Saudi Arabia is choosing a name for your business. Before you choose a name for your business, you don’t need anything to go online and check the names of the top brands in the industry in which you are going to start your business to be guided correctly when choosing your name.
Step three: understanding corporate law in Saudi Arabia
Another important step to take if you want to start a business in Saudi Arabia is to ensure that this is your study and understanding of the country’s corporate law. You may be interested to note that corporate law in Saudi Arabia is similar to what is obtained in Western countries, as businesses can be managed as limited liability transactions, private companies, or other activities.
You can get guidance from your local chambers of commerce. They can give you the startup advice you need and assign profitable newcomers to the region. Partnering with local chambers of commerce will bring you support.
Step four: create a workable business plan
In Saudi Arabia, you cannot register a new business in the country without offering your business plan for verification. Plus, running a business successfully requires having a good and workable business plan.
Step five: partner with a citizen or local company
The law in Saudi Arabia does not allow a foreigner to start a business in Saudi Arabia without the participation of a citizen or local company as part of the board of your new business. The law requires you to have a local partner who owns a controlling stake, and therefore you can control the business to the point of ending the business if they are not satisfied with any of the company’s actions.
Step six: register your company name
Once you can properly follow all of the above steps, it appears that you have a business in mind, then you can go right ahead to register your company name. Of course, you would do the necessary search for the company name to make sure you disagree with a name that is already in their database.
If you don’t want anyone to register your company name, you should register it quickly. Regarding registration and licensing requirements, you should visit state government officials to begin the process.
Step seven: get the business insurance you need
The rule of thumb for doing business in Saudi Arabia and most countries in the world is that you cannot do business without having some basic insurance policies required by the industry you want to work from. Therefore, it is important to draw up a budget for insurance and perhaps consult with an insurance broker to help you choose the most appropriate insurance policies for your business.
You may want to purchase some or all of these insurance policies for your business; General insurance, medical / health insurance, liability insurance, workers’ compensation, overhead disability insurance, business owner group policy insurance, and payment protection insurance.