Opening Up a Company in Saudi

Mikmf wrote:

Hello all,

I am new to the forum, happy to be here.

The current company that I work at has been operating in Gulf countries for a long time and I have had the chance to work in Saudi for some time. Currently though, I am living in Germany. I have a company project that has been running for quite some time, together with two partners: one European and one Saudi. I am considering moving in if the business we are about to start is successful.

Now, my question is legal, and I was hoping you could help me out. As I mentioned above, we have been operating for some time now, but the company is only owned by our Saudi partner. We now want to become owners (3 partners: 2 international, 1 national). We are already in touch with SAGIA, Monshaat, the Ministry of Commerce and the Minisitry of Tourism (given the nature of our business), but I thought it would be a good idea to check it up with you guys, given your experience.

Apparently, in order to become owners, we need to open a LLC and it looks like it is SAGIA who decides whether we need a minimum investment of 1) 100.000 SR, 2) 500.000 SR, 3) we get exempted, given the nature of our business.

Did you ever have experience in this field? All support will be very much appreciated.

Cheers!

I think you can increase the total capital of the company if you want.
And you can do agreements with the partners for share.
But yes there is some minimum limits of everything in here.
Do not worry you have that Saudi friend, so there will be not much of any hassle in your way, if you trust him, and he is willing to do good for you.

Check out on sagia website there is a list of legal lawyers better to take legal advice.
Saudi sharing ratio is 51% the rest with outsiders.
You need to have business or investment visa to enter into ownership contract.

If you want you can opt for permanent residence 800ksar to do business fully owned by you.

Thank you for your answer and help, Arsal. We are finding solutions little by little. Take care.

Thank you for your answer and tips. We are now in touch with SAGIA and hope everything will be solved soon. Take care.