A guide to setting up a business in Saudi Arabia (page 5 of 5)

This must be ratified by the Saudi embassy in each investor's home country.
4 Non-specialised services may only be carried out by an LLC.
5 The company must submit three balance sheets ratified by the tax office and the Saudi embassy in the investor's country to Sagia.
6 The company must submit to the commercial registration department at the Ministry of Commerce & Industry an acknowledgement that it has deposited its capital in a bank licensed in Saudi Arabia and that its investment licence has been issued by Sagia. It will then be granted commercial registration.

Consultancy activity
1 The applicant for the licence must have a bachelor's degree or a higher qualification in the field in which he is consulting. This must be ratified by the Saudi embassy in his home country.
2 He must submit to Sagia three recommendation certificates from consultancy facilities. These must be ratified by the Saudi embassy.
3 He must submit to Sagia experience certificates proving he has worked as a consultant in his specialism for at least five years.
4 A consultancy must submit to Sagia a commitment that 75 per cent of its employees will be Saudi.

The negative list
A list of sectors in which foreign investment is not allowed can be found on the Supreme Economic Council's website, www.sec.gov.sa

Sectors that are restricted or partially restricted include:
Oil exploration, drilling and production
Manufacturing of military equipment, devices and uniforms
Manufacturing of civilian explosives
Catering to military sectors
Security and detective services
Real estate investment in Mecca and Medina
Tourist orientation and guidance services related to Hajj and Umrah
Recruitment and employment services, including local recruitment offices
Real estate brokerage
Printing and publishing
Audiovisual and media services
Land transportation services, excluding intra-city passenger transport by trains
Some medical services
Fisheries
Blood banks, poison centres and quarantines

Key contact
Ministry of Commerce & Industry
Website: www.mci.gov.sa
Tel: (+966) 1 401 2220/4708

Applicable laws
Regulations that a branch of a foreign company must adhere to include:
Anti-cover-up Law
Competition Law
Immigration Law
Labour and Labourer Act
Social Insurance Act
Zakat and taxes regulations
Sharia Appeals Act
Act of Criminal Procedures
Law Act
Regulation of commercial registration
Regulation of commercial fraud
Banking regulations
Regulations protecting intellectual property
Trademarks Act
Copyright Protection Act
Patents Act
Residence Act
Foreign Investment Act (and its executive regulations and supplementing resolutions)
Regulations governing foreign ownership of real estate
Act of Encouraging and Protection of National Industries

Key contact
Presidency for Meteorology and Environment
Website: www.pme.gov.sa
Tel: (+966) 2 651 2312/9868

Key contact
Ministry of Interior
Website: www.moi.gov.sa
Tel: (+966) 1 401 1944

Key contact
Ministry of Justice
Website: www.moj.gov.sa
Tel: (+966) 1 405 7777/5399

Key contact
Ministry of Municipalities & Rural Affairs
Website: www.momra.gov.sa (Arabic only)
Tel: (+966) 1 441 5434

Key contact
Saudi Arabian Standards Organisation
Website: www.saso.org.sa
Tel: (+966) 2 675 1013

Key contact
Ministry of Agriculture
Website: www.saso.org.sa
Tel: (+966) 1 401 6666

Key contact
Communications and Information Technology Commission
Website: www.citc.gov.sa
Tel: (+966) 1 461 8000

Key contact
Saudi Commission for Tourism and Antiquities
Website: www.scta.gov.sa
Tel: (+966) 1 880 8855

About the writer
Hazem Midani is director of Jumana House, a Riyadh-based specialist in company regulation, foreign investment and business formation
www.jumanahouse.com

This article is part of MEED magazine's Doing Business in Saudi Arabia Guide, for more information please visit MEED.com