If you wish to conduct business in Saudi Arabia and register your company there, it is essential to have the necessary information.

Consultant Ghori Bacha from a legal firm dealing with corporate matters in the Gulf countries shared such details during a conversation with WE News.

Bacha stated that following the regulations introduced by Saudi Crown Prince Mohammed bin Salman in 2016, anyone can easily obtain ownership of a company in the kingdom for up to 200,000 riyals (Rs14,516,000).

He added that it is necessary for a company to have operated in its home country or elsewhere for at least one or two years. The firm should be active, have undergone an audit, be registered with the Chamber of Commerce, and be a taxpayer, the consultant added.

Bacha went on to add that any foreign company, including those from Pakistan, can obtain licences in six categories: trading, manufacturing, real estate, agriculture, services class, and transport. The requirements for starting a company in the trading and transport sectors differ from those in other fields.

To acquire a commercial or transport company licence within such categories, he said that it is necessary for 25% of the company’s shares to be owned by a resident of Saudi Arabia while 75% should be from the country where the company originated. “This is because trading companies require substantial capital, amounting to approximately 27 million riyals.”

Bacha noted that the capital requirement for a transport company should be 10 million riyals; however, for other types of companies, it is not mandatory to have a Saudi national as a shareholder.

When asked, he said that the services class includes activities such as construction work, workshops, restaurants, and travel agencies, with over 800 different activities permitted within this category.

He stated that if you have 200,000 riyals, you can easily secure ownership of a company in the kingdom.