Brand Establishment in KSA: Procedures & Corporate Categories

If you want to start a business and build your brand in Saudi Arabia, here is step-by-step guidance on how to do it.

Establishing a Brand in Saudi Arabia

The following actions are necessary if you decide to launch your brand in Saudi Arabia:

1. Identify the nature of your business

Identifying the activity of your brand is the first stage. You need to mention the procedures that your company will follow in the application you file to register your trademark. Moreover, this information will assist you in identifying the kind of business that is appropriate for this undertaking. This guide also includes a list of several business kinds in Saudi Arabia.

2. Fill out an application for investments

You need to apply to the Saudi Ministry of Investment if you are a foreign investor. It is the entity that authorises and oversees foreign investors’ licences. Besides, the application will contain financial information about your commercial activities in Saudi Arabia, together with facts about your organisation and operation.

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 3- Provide your company’s bylaws

The Saudi Ministry of Commerce must receive your company’s bylaws for you to receive permission and documents. Following that, you may get a tax number and finish your commercial registration.

4- Reserve the company name

By going via the Saudi Business Centre and reserving the name you choose for your business. Applying with the unique URL and getting approved completes the reservation procedure.

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5- Establishing the commercial registry

To ensure that your business is legitimate and permitted, you must file for registration with the Saudi Ministry of Commerce after issuing the commercial registry for your mark.

6- Register the national address

Upon registering with the National Address, your business will be eligible for the best commercial and government services.

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7- Registration with the relevant departments

After completing the preceding procedures, you need to sign up for these circles:

• General Organisation for Social Insurance.
• Saudi Zakat, Tax and Customs Authority.
• Ministry of Human Resources and Social Development.

It is crucial to understand that different entities have different registration criteria and processes, so before applying, you must be aware of all the paperwork needed and the registration steps.

8- Creating a bank account

Since banks will handle all of your business’s financial activities, opening a bank account for your brand is a logical step. Ninety days from the day you receive the commercial registration certificate is the time frame you have to open the bank account.

Saudi Arabian Companies’ Categories

The kind of business you plan to start will dictate the kind of company you launch when you begin your brand. The following categories of businesses exist in the Kingdom:

1- A Joint Liability Company

It is a basic entity firm, consisting of two or more individuals who share equal liability for all business debts.

2- Limited Partnership Company

This corporation has a limited partner who has limited responsibility to his investments and at least one general partner who has unlimited personal liability. Limited partners are solely in charge of making investments in the company; general partners oversee operations and make all significant decisions.

3- Joint-Stock Company

The investors in joint-stock corporations hold a portion of the company based on the number of shares they possess and can purchase or sell shares. These businesses are typically founded to provide dependable funding to businesses through pooled investment from shareholders.

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4- Simple Joint Stock Company

Compared to conventional joint-stock corporations, these entities—established under the new corporations’ Law—are more adaptable and have less complicated criteria. A single person can form a joint stock company, eliminate limitations on the number of directors on the board, give bonuses to management, and issue several share classes.

5- Limited Liability Company

One of the most popular forms of corporation is that it shields the company owners’ assets. The responsibility of the business owners, if the firm faces lawsuits, limits the amount of capital they provide.

Read more: The Steps Entailed with Establishing a Company in the KSA