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What is the cost of starting a business in Saudi Arabia

Cost of starting a business in Saudi Arabia

Starting a new business can be a risky decision and requires a great planning and organisation to the different steps you need to take in order to be able to practice your business without any legal issues. One of the most important points you need to consider during the organisation of business starting steps is the cost of starting a business in Saudi Arabia. We will help you in this article to know the different costs needed to start a business in Saudi Arabia.

Cost of starting a business in Saudi Arabia, costs of registration of a new business

Registration of a new business in Saudi Arabia has certain costs that differ according to the company type. The main costs required for registering a new business can be as follows:

  • Limited liability company: commercial registration fees of 1200 SR, publication fees 500 SR, and trademark registration fees of 7725 SR.
  • General partnership company: commercial registration fees of 800 SR annually for the main registration, publication fees of 500 SR, and trademark registration fees of 7725 SR.
  • Joint stock company:commercial registration fees of 1600 SR annually for the main registration, publication fees of 500 SR, trademark registration fees of 7725 SR, and chamber of commerce registration that differs according to the type of commercial activity and grade.
  • Simplified joint stock company:commercial registration fees of 1600 SR annually for the main registration, publication fees of 500 SR, and trademark registration fees of 7725 SR.

Commercial license fees 2000 SR annually for 5 years, and 10,000 Riyals if you need the subscription for the first year to obtain services from the Ministry of Investment investors’ relations centers. Afterward, the fees is applied as subscription fees for

services in the following years SR 60,000.

Minimum capital required for establishing a new company

Cost of starting a new business in Saudi Arabia can be also the minimum capital required for establishing a new company and this capital can differ according to the type off the company and we are going to mention the types of businesses as follows:

  • Minimum capital required for establishing a commercial business with a Saudi partner shouldn’t be less than 20 millions SR.
  • Minimum capital required to practice wholesale and retail trade activity, according to the Ministry of Investment for foreign companies (foreign investments) with a 100% ownership percentage, is (30) million SR.
  • The minimum capital required for starting a business in the supply, operation and maintenance of the buses needs to be 500,000 SR.
  • The minimum capital required for establishing a business in the field of property financing is 200,000,000 SR.

Common questions about the cost of starting a business in Saudi Arabia

If l need to register a new trademark, what are the additional costs?

  • Trademark submission and studying fees is 1000 Saudi Riyals.
  • Trademark publication fees are 1575 SR.
  • Trademark issuing and protection are 5000 SR.

What is the percentage of added value tax?

The percent of the added value is 15% collected by the general authority of Zakat and Tax.

What are the activities exempt from taxes in Saudi Arabia?

The following activities are exempted from taxes in Saudi Arabia:

  • Public education.
  • Healthcare services at public healthcare facilities.
  • Private education services (tuition and textbook fees).
  • Private healthcare services for citizens.
  • Services for transporting goods and passengers from the Kingdom and related transport services.
  • Qualified international transport means,spare parts, consumable materials, and maintenance and repair services.
  • Qualified medicines and medical products.
  • Supply of investment-grade metals if their purity level is not less than 99% and they are tradable in the global bullion market.
  • Export of goods outside the Gulf Cooperation Council (GCC) states.

Mousa & partners services

Mousa & partners legal office can offer you different commercial law services and consultations to establish your business easily and be aware of all conditions, rules and regulations that regulate the commercial procedures in Saudi Arabia. With Mousa & partners legal office you can get the following services:

  • Offering and listing of companies , where you can find legal consultation in the commercial law for offering and listing of companies .
  • Company services, as Mousa & partners can offer a lot of services in the field of company services as follows:
    • Transforming companies from limited liability companies to closed joint-stock companies.
    • Transforming companies from limited liability companies to publicly listed joint-stock companies.
    • Transforming companies from limited liability to closed joint stock companies.
    • Conversion of companies from a simplified joint stock company to a closed or listed joint stock company.
  • Establishing foreign companies (foreign investments), where you can find legal services for the following companies:
    • Foreign branches.
    • Limited liability companies
    • Representative offices
    • Joint ventures
  • Establishing Saudi companies.
  • Foreign investment services.

Reserve your free consultation with Mousa & partners legal office

Do you need to begin your business but you need to get a legal consultation ? Get a free consultation with a great legal team who can give you the best legal advice to begin your business without any complications, and get the highest benefits from the encouraging investment climate in Saudi Arabia. Visit our website, and get your free consultation, with the best legal team.

Contact information for Mousa & partners legal office

Address: Floor H, Building 407, Zone 4, King Abdullah Financial District (KAFD), Riyadh, Saudi Arabia

Phone number: +966505898510

Email: info@mousalegal.com

Working time: everyday from 9 AM to 5 PM, except Saturday and Sunday from 10 AM to 6 PM.

Common questions about the cost of starting a business in Saudi Arabia

Why to choose Mousa & partners legal office?

Mousa & partners legal office is an integrated office, where you can find all services related to the commercial law, business establishment and business management with a great team of experts. With Mousa & partners legal office you can get your free consultation to begin your business in Saudi Arabia. Do not wait and begin your business in Saudi Arabia and contact Mousa & partners legal office.

Knowing the different costs required to establish a new business in Saudi Arabia is an essential thing needed to enter one of the best environments for investment in the Middle East and all over the world. With the different facilities and advantages you can get from investment in Saudi Arabia you can get the most successful business projects.

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