Suppliers/designers of POP displays, POS design, banner stands, Posters and dispensers in Dubai, Saudi.

Saudi Sponsorship for Business

Being one of the largest 25 economies in the world, KSA has the title of being the seventh freest labour market in the world.  Coupled with the stable business environment Saudi has become an attractive destination to investors. ‘Ease of business’ is another tempting thing pulling businesspersons to invest in Saudi Arabia. But is it easy for a non-resident to start a business?  Foreigners or foreign corporate entities have to go through a few hurdles before they can set up shop in Saudi.

A Foreigner or a foreign company is not allowed to work or do business personally in his/its name in Saudi Arabia. So non residents those who wish to do business in Saudi needs to have a sponsor (a Saudi national) who vouches for him to the authorities. Usually it is the potential business sponsor who would invite you to Saudi for undertaking a business partnership. If you do not have a sponsor lined up then it is a good idea to research local business environment to find suitable sponsors.

For Sponsorship

• The local sponsor should be of a good reputation and he should have experience in the specific business field.
• This sponsor can be a company or an individual
• The sponsor holds the majority interest in the business
• He can control or close the business if he wishes to
• The sponsor need not contribute to the initial investment or participate financially
• In many cases, the sponsor has a ‘hands-off’ policy towards the day-to day operations of the business.

Saudi Business consultancy

What should a small time entrepreneur look into for starting a business in Saudi Arabia?

Is it easy for a foreigner to start a business in Saudi Arabia? Would there be many hassles in doing business there? These are some of the questions that plague foreign entrepreneurs when they think of starting a business in Saudi Arabia. Earlier this was a bit complicated but since Saudi Joined WTO in 2005, many rules have relaxed to encourage foreign investors.

So what should a small time entrepreneur know before setting up shop in Saudi? Let us see –

• Study the business atmosphere in Saudi Arabia. The rule of the land is under the Islamic law (Shariah) and it applies to business too. It is also a good idea to know about the present market conditions before investing.
• Create a project plan about business legalities and initial capital investment that will be required from partners. Make clear all sources of funding before initial start up of the business.
• Then it is time to find a Saudi sponsor. Foreigners are not allowed to start business in Saudi without having a Saudi national as a sponsor. This sponsor usually has the controlling hand in the business. Some sponsors can help run the business effectively while others may adopt a ‘hands-off’ policy regarding the day to day operations.
• The Sponsor will go through the business plan very thoroughly before committing to it. When it has the approval, the best idea is to have the sponsor invite you to Saudi. Non resident businesspersons need invitation from a sponsor and a business visa from Saudi to enter the country.
• After getting to Saudi, it is time to register the business with the Saudi Ministry of Commerce. This can be easily done within 2-5 days. By this time you have to open a bank account for the business transactions. Then register the business with Ministry of Zakat and income tax (DZIT). They will give you a certificate of commencement of business.