ORYX WORLD FINANCIAL CONSULTANCY
Company Formation
Each of these business formation types has its own advantages and disadvantages, and the choice of which type to use will depend on the specific needs of the business. At OWFC, we can provide businesses with the right guidance and support to help them choose the right company formation type and navigate the regulatory landscape in Saudi Arabia.
Limited Liability Company (LLC) Formation
Due to its many advantages, LLCs remain the corporate vehicle of choice for most foreign investors looking to set up a business in Saudi Arabia. An LLC is a separate legal entity with its own corporate personality that limits the liability of its shareholders. An LLC must have a minimum of two shareholders and a maximum of 50. LLCs are subject to corporate tax and must file annual financial statements.
Branch Office Formation
A branch office is essentially an extension of a foreign company that operates in Saudi Arabia. It does not have a separate legal entity, and the foreign company remains responsible for its liabilities. A branch office can carry out commercial activities of the foreign company in Saudi Arabia. It must obtain a commercial registration certificate and file annual financial statements.
Joint Venture Formation
A joint venture involves a partnership between two or more companies, typically for a specific project or business venture. Joint ventures are subject to the same regulations as LLCs or branch offices, depending on the form they take.
Foreign Investment Options
Foreign investors have several options for investing in Saudi Arabia, including investing in publicly traded companies, setting up a joint venture with a local partner, or investing in a foreign investment license. The Saudi Arabian General Investment Authority (SAGIA) is responsible for regulating foreign investment in the country.
Franchise Establishment
Franchising is a popular method of expanding a business in Saudi Arabia. Franchisors must register their franchise with the Ministry of Commerce and obtain a franchise disclosure document.
Free Zone Company Formation
Free zones are areas designated for specific types of economic activity, such as logistics, manufacturing, or technology. Companies operating in free zones are exempt from corporate tax and can be 100% foreign-owned.
Offshore Company Formation
An offshore company is a legal entity registered in a foreign country but conducts business outside of that country. Offshore companies in Saudi Arabia are typically used for asset protection or investment purposes.
Oryx World Financial Consultancy