Case study: Incorporating in Saudi Arabia is the key to prosperity in the Middle East
Saudi Arabia is a land of contrasts, where glass and concrete skyscrapers sit next to the vast sands of the desert. It is a dynamic market that attracts entrepreneurs from around the world with its vast opportunities.
But before rushing into the whirlwind of this economic epic, it is worth remembering that Saudi Arabia is not just a new dot on the business map, but a world with its own rules and idiosyncrasies. The closed nature of the economy and the specificity of local procedures can make company registration a real challenge with surprises for foreign entrepreneurs.
Background
Our company was approached by a client with a request to register a company in Saudi Arabia. The client's objective was to set up a chemical processing company. It should be noted that the client clearly stated that he wished to carry out his project in this jurisdiction, justifying his decision with numerous advantages:
Wealthy population: the high standard of living of the population ensures a solvent demand.
Individualised conditions: the possibility of doing business under special conditions negotiated with the regulator.
High income: low competition ensures potentially high profits.
Analysis of the application
Registering a company in Saudi Arabia can be likened to a complex, multi-level quest with its surprises and traps. A closed economy, high authorised capital requirements, and cumbersome bureaucratic procedures can all put off foreign businessmen. But our client was in no mood to give up. So, after the initial consultation and clarification of the client's objectives, our team of lawyers developed a comprehensive company registration strategy that considered all the peculiarities of the KSA's legislation and business environment.
During the meeting, the client mentioned that he had already tried to enter the market on his own but had encountered difficulties in the form of indifference from local lawyers: “I was trying to enter the market of a country that I had only seen through the eyes of a tourist. I needed professional help to coordinate all the details with the regulator and to successfully register the company. On the recommendation of my foreign partners, I approached a local law firm, but it was a waste of time. Firstly, they were completely uninterested. Secondly, I had to beg for information, which was exhausting and annoying. But the last straw was that, in addition to the long replies to my letters, the company representatives forgot to make the scheduled call to “zoom” and did not even apologise... even though they had been recommended to me as one of the best on the market. All in all, I was getting quite desperate and was about to give up on the idea, but luckily, I found you”.
Our actions
After 2 weeks of agreeing details and strategies, we started the project to incorporate the company in Saudi Arabia.
Stages of work:
In the first stage, YB Case specialists advised the client on the regulatory specifics and requirements for the proposed operations in SA.
This was followed by the document preparation phase. We helped the client to gather and prepare a complete package of documents required for registration.
This was followed by the process of incorporating the company in Saudi Arabia, during which we assisted the client in drafting all corporate documentation.
We also assisted the client in communicating with the regulatory authorities and in obtaining all the necessary licences and permits for the chemical processing business.
Another stage was the registration of a bank account where the authorised capital would be deposited. Our specialists helped find a reliable local bank and guided the client through the account registration process.
Outcomes
The process of registering the company in the Kingdom of Saudi Arabia took approximately 4 weeks. Outcome:
The client's company was successfully registered in Saudi Arabia.
All necessary licences and permits were obtained.
The client was able to do business in a promising and highly profitable market.
“The search is over!” — Client feedback on company registration in Saudi Arabia:
“I found your company on the vastness of the internet and immediately decided to write. It was the best decision I ever made. I finally got what I wanted — clear, detailed advice in Russian. Your employee answered all my questions and, most importantly, offered me a solution. I was surprised that within 2 weeks of the initial consultation, we started the registration process. I spent 1.5 months just trying to get through to you and get some information while working with a local company in Saudi Arabia. Thank you so much for your support and concern for my case. I am now relieved to say that the search for registration is over!”
Result
It has been some time since our client started his business. His business is operating successfully, developing and generating a stable, high income. As a result of this client's recommendations, several other acquaintances have approached us with requests of varying complexity, which YB Case specialists have been able to successfully resolve, helping them to set up business in various jurisdictions.
This case study demonstrates our ability to solve problems of any complexity, even in conditions of limited market access and complex bureaucratic procedures. If you wish to incorporate a company abroad, YB Case specialists will help you to do so in the shortest possible time, taking care of all the legal issues. For a consultation, please contact us conveniently through the “Contacts” section.
