Arab Dreams — Proposal Editor

www.arabdreams.com

BUSINESS SETUP
PROPOSAL

PREPARED FOR:

MR. ABDUL RAUF KHAN

ABOUT US

Arab Dreams is a leading consultancy offering comprehensive services to establish and ensure the success of your business in Saudi Arabia. We provide tailored solutions to meet your specific business goals. Our team of experts specializes in business setup, leveraging their technical expertise and proficiency to navigate the challenges of starting a business in Saudi Arabia. With the necessary resources and guidance, we streamline the process to make it efficient and effective. As seasoned consultants, we have successfully assisted a diverse range of businesses and developers in establishing a strong presence in the Kingdom.

Our Major Services
Offered in Saudi Arabia

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Business Setup

™

Trademark Registration

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PRO/GRO Services

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Management Consulting

📊

Audit and Assurance

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Accounting and Finance

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Premium Residency

SUMMARY

Saudi Arabia has streamlined the process for foreigners to obtain investment business licenses, allowing for 100 percent foreign ownership without requiring Saudi participation. This new service offers investors extensive opportunities to establish and operate businesses in the Kingdom. Owned by the Saudi Ministry of Investment, this initiative is a collaborative effort with the Ministry of External Affairs and the Ministry of Commerce, aligning with international licensing procedures. Various government agencies are working together to address and resolve challenges faced by investors, aiming to create a more investment-friendly environment in Saudi Arabia.

WHAT IS A MISA / SAGIA LICENSE?

The Ministry of Investment is responsible for granting licenses to foreign companies looking to establish operations in Saudi Arabia without the need for a local partner. Acquiring a MISA license is the key to setting up your business in the country. Previously referred to as the SAGIA license, this permits international organizations to enter the Saudi market with full ownership rights, eliminating the necessity for local sponsors. As a result, your business retains 100% ownership.

KEY BENEFITS OF MISA LICENSE

✓100% Ownership

✓It provides the opportunity to establish multiple branches throughout the kingdom under a single license.

✓The license allows for multiple activities to be conducted under the same category at no extra charge.

WHY SAUDI ARABIA?

Saudi Vision 2030 is a transformative initiative aimed at diversifying Saudi Arabia's economy and reducing its dependence on oil. This visionary plan encompasses various sectors, including tourism, entertainment, healthcare, and technology, to foster sustainable development and economic resilience. It seeks to create a vibrant society, a thriving economy, and an ambitious nation by promoting private sector growth, enhancing education and employment opportunities, and attracting foreign investment. As a result, Saudi Vision 2030 opens up numerous business opportunities for both local and international entrepreneurs. With significant investments in infrastructure, regulatory reforms to facilitate ease of doing business, and a focus on innovation and entrepreneurship, Saudi Arabia is poised to become a global hub for business and investment. This ambitious vision not only enhances the Kingdom's economic prospects but also positions it as a leading destination for diverse business ventures and sustainable growth.

Strategic Location

Situated at the crossroads of Europe, Asia, and Africa, Saudi Arabia offers unparalleled access to emerging markets.

Biggest Economy

Saudi Arabia has the biggest economy in the MENA region with strong consumer spending.

Economic Stability

Saudi Arabia boasts one of the Middle East's largest and most stable economies.

Stock Market

Saudi Arabia has the biggest stock market in the Middle East and Africa, flaunting its economic power.

Commitment to Innovation

Saudi Arabia invests in technology & innovation, fostering a startup-friendly environment.

Robust Consumer Market

Saudi Arabia's growing, young population with rising purchasing power offers significant business opportunities across sectors.

Quality of Life

Saudi Arabia improves life for residents and expatriates with better healthcare, education, entertainment, and housing, attracting business leaders and families.

Supportive Business Environment

Saudi Arabian Ministry of Investment (MISA) & govt. bodies provide extensive support to foreign businesses, ensuring they have the resources to succeed.

Infrastructure Development

Saudi Arabia invests in transportation, logistics, and digital infrastructure to provide businesses with top-notch facilities and services.

Registration Procedure

Arab Dreams simplifies the process of setting up a company in Saudi Arabia by ensuring all requirements are met for a smooth expansion into the Kingdom. Every firm must have a parent company located outside the country, and specific documents from the parent company are needed for the process. Foreign nationals cannot invest directly in Saudi Arabia, but they can do so through a company, meaning that even small businesses must have a parent company. This process establishes a branch or a subsidiary of the parent company in Saudi Arabia.

Requirements

The initial company formation step is creating a Power of Attorney (POA) document. This authorizes a representative to act on your behalf during formation. To create the POA, submit your passport, ID, and parent company's Commercial Registration (CR). This involves submitting the parent company's document.

Documents

1. Commercial Registration

2. Memorandum of Association

3. Last Year's Financial Statement (must be profitable)

4. Power of Attorney

(These documents must have done Saudi Embassy Attestation)

PHASE 01

ESTABLISHMENT OF LEGAL ENTITY

1

Preparation of Required Documents

In order to kick off the setup procedure and qualify for a MISA Investor License, the above-mentioned documents must be provided. All documents need to be signed by an authorized signatory holding Power of Attorney (POA) from the parent company.

2

Applying for MISA License

Foreigners starting a business in Saudi Arabia need a MISA License. With a MISA Investor License, full ownership and operation across Saudi Arabia are possible. The required license type depends on economic activity.

3

Name Reservation

Name reservation in Saudi Arabia is managed by the Ministry of Commerce (MoC). Company names can be reserved in Arabic or English. It is crucial to select a name that fits the brand and follows local customs.

4

Drafting the Articles of Association (AoA)

Drafting AoA comes after MISA License. AoA for local company drafted & sent to Ministry of Commerce for evaluation. Approved AoA legalized as fundamental document for Saudi legal entity & needed for CR. Individual signing AoA needs PoA from parent company.

5

Issuance of the Commercial Registration (CR)

The Commercial Registration (CR) in Saudi Arabia is like a trade license. It includes the company's registration number, dates, General Manager, and the activities of the local company.

PHASE 02

GOVERNMENT PORTAL REGISTRATION

(If the General Manager Holds Saudi Iqama)

The next step is to register with government and business portals using authorized GM's Iqama. Registration is essential for accessing services and official processes in Saudi Arabia, ensuring smooth operations and compliance with regulations.

6

Register with the Chamber of Commerce (CoC)

The Chamber of Commerce (CoC) is important for local companies, providing attestation for government procedures online once the account is activated.

7

Register with the Ministry of Labor (MoL)

Registering with MoL is crucial for obtaining authorization for issuing work permits and visas, ensuring compliance with labor regulations and facilitating document processing.

7.1

Activating an HRSD Account

Create user account on HRSD portal to manage company's HR activities electronically.

7.2

Opening a Ministry of Labor (MOL) File

Once HRSD account is active, open a Ministry of Labor (MOL) file for company. This file is the official record of employee workforce and compliance with labor regulations.

7.3

Activating the UID Manager

The Unified Identification (UID) system manages employee info and work permits. Activating the UID manager role in company's HRSD account registers employees, processes permits, and accesses employee data online.

7.4

Assigning UID Manager to HRSD Account

With the authorized GM's Iqama, assign him as the UID Manager in your HR account. This allows the GM to handle employee data and HR tasks for the company, following set permissions. This delegation streamlines HR operations and employee task management.

8

Register With the General Organization for Social Insurance (GOSI)

Foreign companies in Saudi Arabia must register with GOSI to comply with Saudization law. GOSI monitors this monthly. Companies must follow Saudization Nitaqat system based on size and industry.

Saudization Compliance

After getting GM visa & converting it to Iqama, company must hire at least 1 Saudi before any more non-Saudi employees.

✓ Contributions to GOSI

• Employers are required to contribute 12% of the Saudi employee's salary to GOSI.
• Saudi employees contribute 10% of their salary to GOSI.
• For foreign employees, the contribution rate is 2%.

9

Registering a National Address

To start a company in Saudi Arabia, need to register a National Address, vital for legal and operational reasons. It is the official company location necessary for local compliance.

10

Registering with the General Authority of Zakat and Tax (GAZT) and VAT

For entities under MISA in Saudi Arabia, compliance with taxation laws is required. This involves registering with GAZT, ensuring VAT compliance, and paying a 15% VAT rate. Foreign companies face a 20% corporate income tax on their annual net adjusted profits.

11

Registering with the Muqeem Portal

Registering with the Muqeem portal is vital for immigration procedures in Saudi Arabia. It helps issue visas and permits for employees' residency, manage services like re-entry visas, permit renewal, and application monitoring.

12

Registering with the Qiwa Portal

Registering with the Qiwa Portal is crucial for companies in Saudi Arabia as it centralizes managing business services and government interactions. Qiwa integrates services from government agencies, easing regulatory compliance like licensing, permits, and document renewals.

13

Registering with the Mudad Portal

The Mudad Portal, by the Saudi Ministry of Labor, streamlines employee payroll and ensures compliance with Saudi labor laws. It enables payroll processing, inputting salary data efficiently. Employers can disburse salaries, following regulations like minimum wage and deductions. The portal offers transparency by allowing employees to view paystubs and salary history.

14

Delegating General Manager

Appointing a General Manager in Saudi Arabia requires transferring their iqama sponsorship to the company. If the GM's current profession is low-level, it must be upgraded to match their new role.

15

Bank Account Opening (Assistance)

To open a bank account in Saudi Arabia, the GM must be physically present after gathering required documents. Timelines differ based on the bank's procedures.

Requirements needed for bank account opening:

Personal Documents

◉Original Iqama I.D (Saudi Resident I.D) of Board of Directors
◉Updated Profession in Iqama I.D
◉Passport Scanned Image of Board of Directors
◉Absher Linked Mobile Number
◉Email I.D

Saudi Company Documents

◉Saudi Company Commercial Register
◉Saudi Investment License
◉Saudi Company Contract
◉National Address
◉Vat & Zakat Certificates
◉Saudi Company Stamp / Seal

Parent Company Documents

◉Trade License / Commercial Registration
◉Memorandum of Association
◉Article of Association

SCOPE & SERVICES

1. PRE INCORPORATION STAGE
• Confirm legal structure and operations from client details • Prepare licensing paperwork and power of attorney • Translate parent company docs into Arabic (if needed) • Authenticate and legalize parent company docs in Saudi Arabia	• Inclusive of all government fees.
Time Line (approx)	1-2 Working Days
2. INCORPORATION STAGE
Investment license Issuance
• Gathering client info for MISA license app: activity list, branch location, capital etc • Completing official MISA registration and activating account • Collecting docs, filling forms, and submitting MISA apps for license • Representing client at MISA meetings, discussing and securing approvals • Guiding on licenses and permissions needed	• Exclusive of all government fees.
Time Line (approx)	4-6 Working Days
Name Reservation
• Following MCI tradename rules. • Providing client with name options. • Reserving approved name from MCI for 60 days.	• Inclusive of all government fees.
Time Line (approx)	2-3 Working Days

Article Creation and Signing
Draft Articles of Association with board members & General Manager details, signed by GM or authorized rep.	• Inclusive of all government fees.
Time Line (approx)	2-3 Working Days
Commercial Registration Issuance
• An LLC Subsidiary app needs notarized Articles of Association for company registration. Submit to the Ministry of Commerce (MCI). • For a branch, a Board Partner Resolution draft is enough. • MCI approval is necessary for all legal docs. • The acceptance letter must be signed by the General Manager or someone with power of attorney, with an MCI officer present.	• Inclusive of all government fees.
Time Line (approx)	1-2 Working Days
3. POST-INCORPORATION STAGE (PORTALS REGISTRATION)
1. Register with the Chamber of Commerce (CoC) 2. Register with the Ministry of Labor (MOL) a). Activating an HRSD Account b). Opening a Ministry of Labor (MOL) File c). Activating the UID Manager d). Assigning the General Manager (GM) as UID Manager 3. Register With the General Organization for Social Insurance (GOSI) 4. Registering Company's National Address 5. Registering with the General Authority of Zakat and Tax (GAZT) and VAT	• Inclusive of all government fees.
(Continued on next page)

6. Registering with the Muqeem portal 7. Registering with the Qiwa Portal 8. Registering with the Mudad Portal 9. Delegating General Manager a). Transfer of iqama sponsorship to the company b). Upgrading profession to a high-level profession (if currently in a normal profession)	• Inclusive of all government fees.
Time Line (approx)	4-5 Working Days
10. Bank Account Opening (Assistance) a) Document preparation for bank account opening.	• Excluding government charges for sponsorship change and profession change.

THE COST OF SETTING UP A BUSINESS AS FOLLOWS

SL NO:	SERVICE DESCRIPTION	AMOUNT
1	Incorporation Fees The registration of a Saudi Limited Liability Company (LLC) including government charges.	24,000 SAR
2	Post Incorporation Fees Registration in the government entities with govt fees Chamber of Commerce, labour department, GOSI, Zakat and Income Tax, VAT, Wasel (National Postal Address), Muqeem, Mudad, Qiwa.	24,000 SAR
TOTAL		24,000 SAR

OFFER VALIDITY: 15 DAYS (VALID FROM DATE OF SUBMISSION) | DATE: 04/02/2026

*Including government fees and service fees.

*Any legal or regulatory changes implemented after the date of the proposal are not included in the pricing and may result in additional charges.

PAYMENT TERMS

Advance with acceptance of the Proposal	50%
Upon receipt of all documents in KSA	25%
After issuing Commercial License	25%
Total Time Frame	50-60 Days

ANNUAL EXPENSES (STARTING FROM THE SECOND YEAR)

Renewal Charge
Corporate taxation is 20% of the net profit.

EXCLUSIONS:

Value-Added Tax (VAT) on payments.
Iqama Fee.
Medical and insurance.
Office setup costs.
MISA payment.
Chamber of Commerce Govt. Fee.

BANK ACCOUNT DETAILS

BANK NAME:ANB (ARAB NATIONAL BANK)

BRANCH CODE:0240

BRANCH NAME:ALANDALUS

CUSTOMER NAME:ARAB DREAMS PRIVATE CO

A/C NO:0108095504200019

IBAN NO:SA2430400108095504200019

Client Approval

We authorize Arab Dreams to start the process of services delivery as outlined in the proposal

Name:

Title:

Signature:

Date:

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Thank you
for choosing us!

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ARAB DREAMS

MANAGEMENT CONSULTANTS

www.arabdreams.com | [email protected]

Our Global Presence

KSA | UAE | UK | INDIA

Branches

JEDDAH | DAMMAM | RIYADH | BURAYDAH

PREPARED BY

MOHSIN

+966 55 696 6410

🏢 Arab Dreams — Proposal Editor