Page 10 - ICAI UAE TAX UPDATE_September 2024

The image highlights key projects aligned with Saudi Arabia’s Vision 2030, showcasing their completion timelines
and business potential.
This article highlights the essential requirements and steps involved in establishing a 100% foreign-owned subsidiary
in Saudi Arabia, focusing on Service, Manufacturing, or Commercial licenses.

Key Steps for Setting Up a Subsidiary in Saudi Arabia

1. Application to the Ministry of Investment of Saudi Arabia (MISA)
The first step involves the submission of the required documentation, including financial statements, corporate
records, and legally attested documents of the parent entity. The minimum capital requirement is determined based
on the subsidiary’s planned activities.

2. Application to the Ministry of Commerce
This stage requires board resolutions for company registration, along with notarized and attested documents.

3. Relevant Registrations and Submissions
In parallel with the MISA application, the entity needs to register with various government bodies such as the Zakat,
Tax, and Customs Authority (ZATCA), the Ministry of Human Resource & Social Development (HRSD), and the
General Organization for Social Insurance (GOSI). Furthermore, the business must obtain a permit from the local
municipality for the place of business.

4. Pre-Operational Registrations
Before commencing operations, additional steps include opening a bank account, registering with platforms like
Qiwa, Muqeem, and Mudad, and securing other necessary permits depending on the nature of the business.

The typical timeframe for setting up a subsidiary in Saudi Arabia ranges from one to three weeks, depending on the
accuracy and completion of the required documentation.

Conclusion
The increasing ease of doing business in Saudi Arabia, coupled with the strategic initiatives under Vision 2030,
makes it an attractive destination for foreign investment.

10 www.icaidubai.org

UAE TAX UPDATE NEWSLETTER ISSUE 06 - September 2024