The procedures for opening a branch of an Emirati company in the Kingdom of Saudi Arabia require following a set of legal and regulatory steps to ensure compliance with local regulations. This is done in cooperation with the relevant government agencies, such as the Saudi Ministry of Investment and the Chamber of Commerce. The procedures begin with submitting an application for an investment license from the Ministry of Investment, which allows the company the right to conduct its commercial activities in the Kingdom. The company must submit documents including a copy of the commercial register of the parent company in the UAE, a copy of the articles of association, approved financial reports, in addition to a legal power of attorney for a person representing the company in Saudi Arabia. After obtaining approval, the branch must be registered with the Chamber of Commerce and a certificate of membership must be obtained. Procedures for opening a branch for my Emirati company in Saudi Arabia.
Conditions for opening a branch for your company in the Kingdom of Saudi Arabia
Opening a branch for your company in the Kingdom of Saudi Arabia requires fulfilling a set of conditions and regulatory procedures to ensure compliance with local laws. The most prominent of these conditions are:
Obtaining an investment license: An application must be submitted to the Saudi Ministry of Investment to obtain a foreign investment license, which allows the company to open a branch and conduct commercial activities in the Kingdom.
Commercial register: Submit a copy of the commercial register of the parent company in the UAE or the country of origin, and submit a copy of the articles of association and the company’s articles of association.
Financial Reports: Submitting audited financial reports certified by the parent company, proving the soundness of the company’s financial position.
Legal Power of Attorney: Appointing a legally responsible person to represent the company in Saudi Arabia, and who is authorized to deal with government agencies and manage the branch.
Registration with the Chamber of Commerce: After obtaining the investment license, the branch must be registered with the Saudi Chamber of Commerce and obtain a certificate of membership.
Capital: Commitment to the required capital according to the commercial activity that the branch will practice, as requirements vary according to the type of activity.
Compliance with regulations: Compliance with local regulations such as the labor system, zakat and taxes, consumer protection, and other laws regulating commercial activities in the Kingdom. Fulfilling these conditions ensures the opening of a legal branch that can operate effectively in the Saudi market.
Procedures for establishing a company branch in the Kingdom of Saudi Arabia
Establishing a company branch in the Kingdom of Saudi Arabia requires following a set of legal and regulatory procedures to ensure compliance with local laws. The following are the basic steps:
Obtaining an investment license: Applying to the Saudi Ministry of Investment (MISA) to obtain a foreign investment license. It also requires submitting documents such as the commercial register of the parent company, the articles of association, and certified financial reports.
Preparing the required documents
Commercial register: A copy of the commercial register of the parent company.
Memorandum of Association: A copy of the articles of association of the parent company and the articles of association.
Financial reports: Audited financial reports for the last years, certified by a legal accounting authority.
Official power of attorney: A power of attorney for a person to represent the company in the Kingdom and be legally responsible.
Registration in the Chamber of Commerce
After obtaining the license, the branch must be registered in the Chamber of Commerce in the city in which the branch will operate.
A certificate of affiliation for the branch to the Chamber of Commerce is obtained.
Registration in the Ministry of Commerce: Register the branch with the Saudi Ministry of Commerce to obtain the commercial register for the branch.
Opening a bank account: After completing the registration, a bank account must be opened in the name of the branch in one of the local banks to facilitate financial transactions.
Registration of employees and social insurance: Register employees with the General Organization for Social Insurance and ensure compliance with the labor system in the Kingdom.
Obtaining a municipal license: Submit an application for a municipal license to operate the office or branch headquarters.
Registration in the General Authority of Zakat and Income: The branch must be registered with the General Authority of Zakat and Income to ensure compliance with tax laws.
Compliance with local laws: The branch must comply with all local laws, including labor law, zakat, taxes, and safety and consumer protection laws. Completing these procedures allows the branch to operate legally in the Saudi market, and ensures compliance with all legal and regulatory requirements.
Establishing a company in Dubai
Establishing a company in Dubai is a strategic step for many investors and entrepreneurs due to the great economic opportunities offered by the emirate. Dubai enjoys a distinguished geographical location that makes it a global center for trade and business, as it provides an encouraging and supportive investment environment, characterized by political and economic stability, and advanced infrastructure that includes international ports and airports. In addition, Dubai offers a wide range of free zones that allow companies to be established without the need for a local partner, with attractive tax exemptions and full ownership for the foreign investor.
The procedures for establishing a company in Dubai may differ depending on the type of business activity and the area in which the investor wishes to establish his company, whether within Dubai or in one of the free zones. These procedures usually include choosing the business activity, registering the trade name, obtaining the necessary approvals from government agencies, and issuing a commercial license. In addition, companies must commit to registering employees with social insurance and opening a commercial bank account.
By cooperating with specialized consulting companies such as “Atqan”, investors can simplify the establishment process and expedite legal and administrative procedures. These companies provide comprehensive services including providing legal advice, preparing the required documents, and communicating with government agencies to ensure the company’s compliance with all local laws and regulations. Establishing a company in Dubai opens the door to limitless opportunities and contributes to achieving sustainable growth in a market full of challenges and opportunities.
The importance of establishing a company in Dubai
Establishing a company in Dubai is a vital step for many businessmen and investors, for several main reasons:
An encouraging investment environment: Dubai provides a flexible investment environment that supports innovation and facilitates company registration procedures. The local government provides many facilities, including tax exemptions and full foreign ownership in many sectors.
A strategic location: Dubai is located in a unique geographical location that connects three continents, making it a global center for trade and business. This location provides easy access to the markets of the Middle East, Asia, Africa, and Europe.
A diversified economy: Dubai has a diversified economy that includes multiple sectors such as trade, tourism, technology, and financial services, which reduces the risks associated with relying on one sector.
Advanced infrastructure: Dubai provides a world-class infrastructure that includes ports, airports, and transportation networks, which facilitates the movement of goods and people.
Growth and expansion opportunities: Establishing a company in Dubai provides great opportunities for expansion and growth, as companies can benefit from the large market and diversity of consumers.
Strong government support: The Dubai government is adopting strategic initiatives such as “Vision 2021” and “Dubai Industrial Strategy 2030” to enhance the business environment and attract investments.
Easy access to financing: Dubai provides multiple opportunities for obtaining financing, including local and international banks, investors, and partnerships.
Cultural diversity: Dubai hosts a diverse international community, which contributes to the exchange of ideas and cultures, and enhances innovation.
In general, establishing a company in Dubai is a successful investment, as it combines the available opportunities and competitive advantages that make it a preferred destination for many businessmen and investors worldwide.
Our company’s services for opening a branch of a company in the Kingdom of Saudi Arabia
Our company provides a range of integrated services to open a branch for your company in the Kingdom of Saudi Arabia, ensuring ease and speed of procedures and compliance with local laws. Our services include:
Legal and commercial consultations: We provide specialized legal and commercial consultations to help you understand the requirements of the Saudi market and the legal procedures required to open a branch.
Licensing Procedures: We provide legal procedures management services to obtain investment licenses from the Saudi Ministry of Investment, and ensure compliance with local laws and regulations.
Document Preparation: We provide comprehensive support in preparing and preparing all required documents, such as the commercial register, articles of association, and financial reports, with certified translation services.
Registration with the Chamber of Commerce: We handle the process of registering the branch with the Saudi Chamber of Commerce and obtaining the necessary membership certificate to start the business.
Opening a Bank Account: We help you open a commercial bank account in a local bank to facilitate your financial transactions in the Kingdom.
Communication with Government Agencies: We provide direct communication services with the relevant government agencies to facilitate all administrative and regulatory procedures.
Employment and Social Insurance: We provide consulting services for hiring and registering workers in social insurance, and ensuring compliance with Saudi labor laws.
Logistics Support: We help you find the right location for your company branch in the Kingdom, and provide integrated logistical solutions to start operations smoothly.
Registration with the General Authority of Zakat and Income: We help you complete the registration procedures with the General Authority of Zakat and Income to ensure compliance with local taxes.
We strive to make the process of opening your company branch in the Kingdom a smooth and fruitful experience, while ensuring that you comply with all legal and administrative requirements.
In conclusion, opening a company branch in Saudi Arabia is a strategic step that contributes to expanding your business and strengthening your presence in one of the largest markets in the Middle East. With continuous government support, a strong infrastructure, and laws that encourage foreign investment, companies can achieve significant growth and benefit from various economic opportunities. Companies’ commitment to legal procedures and local regulations, in addition to cooperating with the competent authorities and benefiting from support services, ensures the establishment of a successful branch capable of competing in the thriving Saudi market.
Frequently asked questions about opening a company branch in Saudi Arabia
What is the duration of the procedures required to open a company branch in Saudi Arabia?
The duration varies depending on the type of activity and the required procedures, but it usually takes from 4 to 8 weeks to complete all procedures if all documents are submitted correctly.
Does opening a branch of a foreign company require a Saudi partner?
No, foreign companies can open wholly owned branches without the need for a Saudi partner, but they must adhere to local laws and obtain the necessary licenses.
Must the branch follow the same activity as the parent company?
Yes, the branch activity must be consistent with the activity of the parent company as registered in the original commercial register of the company.
