The Law Firm of Hazim Al Madani Attorneys and Legal Consultants
Saudi Arabia’s ongoing transformation under the Vision 2030 plan is creating new opportunities at an extraordinary pace. The Saudi Ministry of Investment (MISA) is facilitating access to these opportunities by building a thriving cross-government investment environment and assisting businesses throughout their investment journey.
MISA collaborates with domestic and international businesses of all sizes and scales, from startups to blue-chip multinationals, through a network of dynamic business centers across the Kingdom, to help make investing in the Kingdom as streamlined and simple as possible.
MISA leads the way in improving Saudi Arabia’s overall business environment by commissioning multiple market intelligence studies each year and developing local joint venture opportunities.
To place Saudi Arabia among the top-performing investment markets.
To promote KSA as a global investment destination, attract and retain investors, expand their investment opportunities, and benefit from long-term national economic growth.
MISA provides organizations with supportive and advisory services to deliver solutions to their business needs and implement local solutions by leveraging a wealth of global knowledge and experience.
-Providing specialized consultations to businesses in a variety of industries.
-MISA is obligated to be a part of the client’s journey in the kingdom and is glad to take care of all the client’s needs.
-MISA’s business centers offer most government services to clients to help them start and run a business.
Market Analysis & Insights
-MISA conducts studies on the state of the local market and its various sectors based on government plans for companies looking to enter the market for the first time or expand their current operations.
-MISA collaborates with government agencies to identify, develop, and market business opportunities.
-MISA plays an important role in this by marketing the opportunities in the Investment catalogue, which includes all details, and by working closely with existing and potential clients to evaluate each opportunity in order to transition to real investments.
MISA is the only way to establish a 100% foreign company in Saudi Arabia:
-Although both branches and LLCs can have 100 percent foreign ownership, there are advantages to choosing an LLC over a branch, and it has become the preferred route for most foreign company formation in the Kingdom. This is primarily due to liability protection and the speed with which primary registration is now comparable to that of a branch.
-Both entities are required to provide a certain amount of share capital, which can vary depending on the company’s activities but is generally 500,000 SAR, and both entities are subject to local taxes because a branch is considered a permanent establishment (PE). A branch, on the other hand, has the advantage of not requiring the creation of new company Articles of Association.
– Foreign investors seeking to establish a company in Saudi need a commercial license issued under the auspices of MISA Under the foreign investment legal framework enacted investors can attain 100% ownership of their company in Saudi Arabia (depending on the chosen activity).
MISA recognizes the following legal entities:
- Limited Liability Co (LLC) – 100% foreign ownership is permissible through MISA
- Limited liability one-person company
- Joint Stock Company
- Foreign company branch
- Solidarity professional company
What is MISA License and Name?
The MISA Investor License is a type of company license that is intended to entice established international businesses to expand into Saudi Arabia. Once the above-mentioned documents have been gathered, the MISA Investor License application process can begin. Technology, management consulting, media, and event management are examples of common business activities. Certain activities are not permitted and/or require the approval of a third party. Currently, the government is focusing on several sectors that are appealing to foreign investment, including education, logistics, manufacturing, entertainment, tourism, and culture. When carrying out your company’s Name Reservation, keep in mind that it must be an Arabic name that complies with KSA company naming regulations to include the official activity.