Procedures for opening a branch for your Emirati company in Saudi Arabia

١٥ يناير Procedures for opening a branch for your Emirati company in Saudi Arabia

١٥ يناير POSTED AT
English
itqanadmin

With the economic expansion and increasing investment opportunities in the Gulf region, Emirati companies are increasingly interested in opening branches in the Kingdom of Saudi Arabia. Saudi Arabia is one of the largest markets in the region, providing an ideal environment for companies wishing to strengthen their presence and expand their business activities. Opening a branch of an Emirati company in Saudi Arabia requires following a set of legal and administrative procedures aimed at ensuring compliance with local regulations. In this article, we will review the steps required to open a branch of an Emirati company in Saudi Arabia, starting from registration and licensing to operational aspects.

Table of Contents

Procedures for opening a branch for my Emirati company in Saudi Arabia

Opening a branch for an Emirati company in Saudi Arabia requires following a set of legal and administrative procedures. Here are the basic steps to open a branch:

Determine the business activity: The company must determine the type of activity that it will carry out in the branch, as this varies according to the commercial classifications available in Saudi Arabia.
Submit a license application: An application must be submitted to the Saudi Ministry of Investment to obtain a license to open a branch. The application includes information about the parent company, the proposed activity, and the business plan.
Required documents: A copy of the commercial register of the parent company. The company’s articles of association and bylaws. The board of directors’ decision to open a branch in Saudi Arabia. A copy of the ID or passport of those responsible for the branch. Any other documents required by the ministry.
Branch registration: After obtaining the license, the branch must be registered with the Ministry of Commerce and Investment. This requires filling out the necessary forms and submitting the required documents.
Obtaining the necessary licenses: This depends on the type of activity, and you may need to obtain additional licenses from other entities such as the municipality or the Zakat and Income Authority.
Employee registration: Employees must be registered with the Ministry of Human Resources and Social Development, and obtain the necessary work permits.
Opening a bank account: The branch must open a bank account in a local bank to facilitate financial transactions.

Commencing operations: After completing all procedures, the branch can begin commercial operations.

Be sure to review local laws and regulations that may change, and it is preferable to consult a legal advisor or business specialist for accurate guidance.

Establishing a company in Dubai for Saudis with the help of Itqan Company

Establishing a company in Dubai represents a unique opportunity for Saudi investors seeking to enter new markets and benefit from the dynamic business environment in the emirate. Itqan Company, which specializes in providing company formation services, provides comprehensive support to Saudis wishing to establish their companies in Dubai. This includes guiding clients through all stages of the establishment process, from choosing the appropriate business activity to obtaining the necessary licenses.

Dubai is a global business hub, providing a favorable environment for investment thanks to its advanced infrastructure, encouraging tax systems, and many free zones that allow foreign owners full ownership. Itqan Company contributes to simplifying complex procedures, saving investors time and effort. The company also provides specialized consultations on choosing the right free zone for their activity, and helps them prepare the required documents and submit applications to the competent authorities.

In addition, Itqan enables Saudis to understand local laws and regulations, ensuring full compliance and helping to avoid any legal problems. Thanks to Itqan’s services, Saudi investors can easily achieve their business ambitions in Dubai, opening up new horizons of success and prosperity for them.

Advantages of establishing a company in Dubai for Saudis

Establishing a company in Dubai for Saudis has many advantages, including:

Full ownership: Dubai allows Saudis to establish companies in free zones with full ownership without the need for a local partner, which provides greater freedom to manage businesses.

Advanced business environment: Dubai is a global business hub, providing advanced infrastructure and modern facilities, which facilitates transportation and communication.

Low taxes: Dubai has an attractive tax system, as there are no personal income taxes or corporate taxes in free zones, which helps increase profits.
Ease of procedures: Dubai offers fast and efficient procedures for establishing companies, saving time and effort for investors. Consulting firms such as Itqan also help simplify these processes.

Access to new markets: Dubai offers Saudis the opportunity to access new markets in the Gulf, Asia and Africa, enhancing opportunities for growth and expansion.

Diversity of economic activities: Dubai offers a wide range of business activities, allowing Saudi investors to choose the activity that suits their skills and interests.

Government incentives: The UAE government offers incentives to investors, such as easy financing and logistical support, which encourages the establishment of companies.

Strategic location: Dubai is located in an ideal geographical location, making it a launchpad for accessing global markets.

Establishing a company in Dubai is a strategic step for Saudis seeking to strengthen their businesses and achieve their commercial goals.

How long does it take to open a branch in Saudi Arabia?

Opening a branch of an Emirati company in Saudi Arabia is a process that requires careful planning and an understanding of legal and administrative procedures. The time it takes to open a branch can vary based on several factors, but in general, the process can take from four to eight weeks, and in some cases it may extend to several months. The process begins with determining the business activity that the company wants to practice, then an application for a license must be submitted to the Ministry of Investment. After that, the company must prepare the necessary documents, such as the articles of association, copies of passports, and a letter from the board of directors approving the opening of the branch. This stage may take additional time if there is a need to amend or complete the documents.

After obtaining the license, comes the stage of registering the branch with the Ministry of Commerce and Investment, which requires additional time to evaluate the application and ensure that all requirements are met. The timeline should also include the procedures for obtaining the necessary licenses depending on the type of activity, which may require examination or review by various government agencies. Therefore, it is essential for UAE companies to have realistic expectations regarding the timeline for opening a branch in Saudi Arabia, knowing that working with legal advisors or specialized firms can help speed up this process and avoid any unexpected delays.

Documents required to establish a company in Dubai for Saudis

To establish a company in Dubai for Saudis, there are a set of documents and papers that must be submitted. Here is a list of the required documents:

A copy of the passport: Colored copies of the passport of each founder or partner in the company must be submitted.
Personal photos: Recent personal photos of the founders, usually with a white background.
No-objection letter: If one of the founders is an employee, he or she may need to submit a no-objection letter from the employer.
Memorandum of Association: Drafting the memorandum of association that includes details about the company, such as the name, business activity, and shareholding percentage.
Company name: A list of proposed names for the company, and the names must be in accordance with local laws.
Determine the business activity: Determine the type of business activity that the company will carry out.
Approval of the competent authorities: In some cases, you may need approval from certain government agencies if the activity requires it (such as health or educational activities).
Local address: Proof of a local address in Dubai, which can be done by renting an office.
Application form: Filling out the form required to establish the company, which can be obtained from the competent authorities.
Copy of Commercial Registration: If the founder owns an existing company, a copy of its commercial registration may be required.

It is preferable to consult a specialized company such as “Itqan” to provide assistance in preparing and submitting the papers to the competent authorities, which facilitates the establishment process and ensures compliance with legal requirements.

In conclusion, opening a branch of an Emirati company in Saudi Arabia is a strategic step that enhances expansion and growth in a vibrant market. By following the necessary legal and administrative procedures, such as obtaining the required licenses and registering the branch, companies in the UAE can benefit from the great investment opportunities provided by the Kingdom. Adhering to local laws and cooperating with legal advisors or specialized companies can facilitate the process and save time and effort. Therefore, good preparation and understanding of the Saudi market are essential factors that contribute to the success of the new branch and achieving the company’s goals. With the support of the investment environment in Saudi Arabia, Emirati companies can build a strong base to enhance their presence in the region and open new horizons of success and prosperity.