All of us know that if a foreigner wants to start a business in Saudi Arabia, he has to apply for the SAGIA license. In order to register a company in Saudi Arabia, one has to obtain a Commercial Registration (CR) certificate after paying the due fee.
Every legal business and company needs to obtain a commercial registration certificate (CR) in order to conduct its business in Saudi Arabia. The Ministry of Commerce and Industry in the Kingdom of Saudi Arabia maintains a Commercial Register which is the official record of the merchant and company names that are operating in the Kingdom of Saudi Arabia.
The extracts of the records of the Commercial Register are public records and hence available to the general public. All of the registrants at the Commercial Registry must be indicated in all of the official correspondence and/or printed materials the name, location, and a number of the company commercial registration certificate (CR) which has been allotted to them in the registry.
TYPE OF BUSINESS COMMERCIAL REGISTRATION REQUIREMENT
INDIVIDUAL MERCHANTS WITHIN 30 DAYS OF OPENING BUSINESS / WITHIN 30 DAYS OF CAPITAL REACHING SAR 100,000.
MANAGERS OF COMPANIES FROM IN THE KINGDOM WITHIN 30 DAYS OF THE ARTICLES OF ASSOCIATION OF THE COMPANY BEING RECORDED BY THE NOTARY PUBLIC.
FOREIGN COMPANIES LICENSED TO OPEN AN OFFICE OR BRANCH IN THE KINGDOM WITHIN 30 DAYS OF THE OPENING OF THE OFFICE OR BRANCH
How to do company commercial registration?
Office in Saudi Arabia
First of all, you need to have an office in Saudi Arabia to apply for a company commercial registration certificate (CR). Obviously, since you have not received a license, you cannot buy property in Saudi Arabia and therefore, you will have to rent the office.
Articles of Association
You need to submit the Articles of Association of your company to the Ministry of Commerce in Saudi Arabia for approval. Articles of Association are internal rules of the company which the company must have to follow. Any business lawyer can help you draft AOA for your company. This process takes around 2 days.
Once the Articles of Association is approved by the Ministry of Commerce, all the founders of the company have to sign the AOA in front of the notary public to get a company commercial registration certificate (CR) in Saudi Arabia.
After signing them, you will have to publish the name and Article of Association in Newspapers. This process may also take around 2 days and cost around SR 10,000.
Deposit the Capital
After this, the next step is to deposit the capital into the bank and receiving the Certificate from there. This step may take around 3 days.
Commercial registration fees in Saudi Arabia
Once all these requirements are fulfilled, you need to pay the fee for the company commercial registration certificate (CR) in Saudi Arabia i.e. SR 6000 per year.
Returning to Commercial Registry
If the business needs to make any amendments to the existing information at the Commercial Register, then they must make these changes within a period of 30 days of the date of the amendment.
It is vital to also note that the liquidators or heirs of any business cancel the registration of any business or company within 90 days period of the suspension of liquidation of the commercial activity.
From commercial registration to commencing business
After the company has received the commercial registration certificate (CR), there are a few simple procedures or steps which must be followed by the company in order to commence business or start legal operations in Saudi Arabia. These can be completed easily at the SAGIA Business Centers.
Registering at the Chamber of Commerce
All of the registrants will need to hand in a Certificate of Membership which they are to obtain from the Chamber of Commerce and Industry or CCI. This must be however done within 30 days of having the registration done in the Commercial Registry. All of the applicants or registrants will also have to pay a Commercial Registration fee of SAR 2000.
Registering with the Department of Zakat and Income Tax
The business will need to register with the DZIT to get a file number and the Certificate of Commencement of Business
Registering with the General Organization of Social Insurance
All the employees and employers will have to register to the GOSI
Registering with Municipality and Labor Office
All companies must obtain Municipal License prior to registering with Labor Office. Then they must register with the Labor Office to start hiring people.