Things to do after setting up a business in Saudi Arabia

Overview 

A company's registration in Saudi Arabia and receipt of the Commercial Registration (CR) from the Ministry of Commerce and Industry (MOCI) are just the first steps in the process of developing a functional corporate tool. The post-commercial registration requirements involve a number of steps, including setting up your corporate bank account, hiring staff, protecting your intellectual property, and going through the tax, accounting, and bookkeeping procedures for your Saudi business.

These steps also include registering, linking, and activating the company with all government authorities for labor, payroll, office address, etc. We have outlined the five (5) key steps you should take into account after CR processing in order to run your Saudi business after setting up your company in Saudi Arabia 

GOVERNMENT REGISTRATION & ACTIVATION

After successfully completing the commercial registration process of your Saudi company, it is crucial to ensure that all your company accounts are registered, linked, and activated with the appropriate Saudi Government departments. This includes, but is not limited to, the Ministry of Human Resources, Labor, General Organization of Social Insurance, Zakat, Tax and Customs Authority, Chamber of Commerce, and more.

 Failure to complete this crucial step can significantly hinder or completely impede your ability to conduct business. While many service providers can assist with commercial registration, it's important to note that not all of them have the necessary expertise or knowledge to guide you through the complex procedures required to fully activate your business with all government agencies

APPLY FOR A CORPORATE & PERSONAL BANK ACCOUNT

After finalizing the setup of your Saudi company, it is vital to establish a corporate bank account as soon as possible to facilitate invoicing suppliers and receiving payments from customers. This involves a thorough identification and verification process, including compliance procedures, for both corporate and personal account opening. The bank requires copies of all essential corporate documents to ensure their eligibility and authenticity, which must be stamped to confirm their legitimacy. 

It is also recommended to have a personal bank account for the General Manager of your Saudi Arabia company to initiate labor processes and pay or receive salaries under the company's umbrella. With both accounts set up and ready to go, your Saudi business can confidently embark on its financial journey.

HIRE STAFF

Locating skilled individuals for any business is a challenge in every jurisdiction, and this is no different when building your enterprise in Saudi Arabia. It's essential to understand the intricacies of the local employment visa management process while doing so. Adding foreign employees to your team can be a valuable asset, even beyond Saudization regulations.

To live and work in Saudi Arabia full-time, individuals seeking employment must obtain a 'Saudi Work Visa.' To apply for the visa, you must first have a signed job offer letter for your new hire and provide the contract of employment, an official invitation, and medical reports. If the employee is recruited from outside of Saudi Arabia, the next step is to complete the visa, Iqama (official Saudi ID document), and Absher processes issued by the Saudi government. Note that it is not possible to have employees working under your Saudi company without fully completing their Iqama and Absher processes. It is crucial to seek the assistance of a registered corporate services provider to navigate the visa, labor, and immigration processes and ensure that your new hires are legally authorized to work according to Saudi Arabia Labor law

INTELLECTUAL PROPERTY (IP) PROTECTION

Saudi Arabia has taken a significant step towards fostering a culture of innovation and creativity with the implementation of its first national strategy for protecting intellectual property. The Saudi Authority for Intellectual Property (SAIP) has been established to ensure that patent registrations are completed within a year, and to encourage innovators to establish their ventures within the country. Local registration of trademarks and patents is mandatory for individuals not affiliated with the World Intellectual Property Organization (WIPO).

TAX REGISTRATION, ACCOUNTING & BOOKKEEPING

Saudi Arabia's tax system is complex and multi-layered, with various taxes and reporting requirements applicable to businesses. Corporate Tax (CT), Value Added Tax (VAT), Capital Gains Tax (CGT), and Withholding Tax are just a few examples. Compliance with these regulations requires companies to maintain accurate records and implement efficient bookkeeping and tax reporting processes.

To ensure compliance with these regulations, businesses can either establish an in-house team or outsource the task to specialist providers. Outsourcing is often a cost-effective and rational solution that enables companies to maintain their tax obligations without compromising their core business functions. With proper tax reporting and bookkeeping processes in place, businesses can operate with confidence in the Saudi Arabian market.

Take Away 

Let Thinkdirect BPO be your guiding light as you navigate the complex process of setting up your Saudi Arabian entity post-commercial registration. From start to finish, we're here to provide you with the necessary guidance and support to make the process as seamless as possible. Our team of seasoned professionals will help you select the right company structure, draft the necessary documentation, and handle all aspects of office registration, visa services, banking, accounting, bookkeeping, payroll, and tax services.

We understand that setting up a business in a foreign country can be overwhelming, which is why we're committed to providing you with a hassle-free experience. Whether you're new to the region or an established business looking to expand, our experts will leverage their extensive knowledge to help you make informed decisions and navigate the process with ease.

To get started, contact us today to schedule your free expert consultation on your Saudi Arabia entity. Reach out to us via email at info@thinkbpo.me or give us a call at +966 54 663 9737.