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Friday, 29 April 2016

Procedure to get Commercial Registration (CR) of the company in Saudi Arabia

All of us know that if a foreigner wants to start business in Saudi Arabia, he has to apply for SAGIA license. We have explained in detail the step by step procedure to apply for SAGIA license. One of the steps to apply for SAGIA license is to get commercial registration (CR). Every legal business needs to be commercially registered in order to conduct their business. The Ministry of Commerce and Industry in the Kingdom of Saudi Arabia maintains a Commercial Register which is the official record of the merchant and company names which are operating in the Kingdom of Saudi Arabia. The extracts of the records of the Commercial Register are public records and hence available to the general public. All of the registrants at the Commercial Registry must be indicating in all of the official correspondence and / or printed materials the name, location and number of the Commercial Registration which has been allotted to them in the registry.


TYPE OF BUSINESS
COMMERCIAL REGISTRATION REQUIREMENT
INDIVIDUAL MERCHANTS
WITHIN 30 DAYS OF OPENING BUSINESS / WITHIN 30 DAYS OF CAPITAL REACHING SAR 100,000.
MANAGERS OF COMPANIES FROM IN THE KINGDOM
WITHIN 30 DAYS OF THE ARTICLES OF ASSOCIATION OF THE COMPANY BEING RECORDED BY THE NOTARY PUBLIC.
FOREIGN COMPANIES LICENSED TO OPEN AN OFFICE OR BRANCH IN THE KINGDOM
WITHIN 30 DAYS OF THE OPENING OF THE OFFICE OR BRANCH



Procedure to get Commercial Registration (CR) of the company in Saudi Arabia

  1. First of all, you need to have an office in Saudi Arabia. Obviously, since you have not received a license, you cannot buy property in Saudi Arabia. So you will have to rent the office.
  2. You need to submit Articles of Association of your company to the Ministry of Commerce in Saudi Arabia for the approval. Articles of Association are internal rules of the company which company must have to follow. Any business lawyer can help you draft one for your company. This process takes around 2 days.
  3. Once Articles of Association is approved by the Ministry of Commerce, all the founders of the company have to sign the AOA in front of the notary public. This process may also take around 2 days.
  4. After signing them, you will have to publish the name and Article of Association in Newspapers. This process may also take around 2 days and cost around SR 10,000.
  5. After this, next step is to deposit the capital into the bank and receiving Certificate from there. This step may take around 3 days.
  6. Once all these requirements are fulfilled, you are all set to apply for commercial registration (CR) of your company. The fee for CR is SR 6000 per year.
  7. Returning to Commercial Registry: If the business needs to make any amendments in to the existing information at the Commercial Register, then they must make these changes within a period of 30 days of the date of amendment. It is vital to also note that the liquidators or heirs of any business cancel the registration of any business or company within 90 days period of the suspension or liquidation of the commercial activity.
  8. From commercial registration to commencing business: After the company has received the Commercial Registration, there are a few simple procedures or steps which must be followed by the company in order to commence business or start legal operations. These can be completed easily at the SAGIA Business Centers.
  9. Registering at the Chamber of Commerce: All of the registrants will need to hand in a Certificate of Membership which they are to obtain from the Chamber of Commerce and Industry or CCI. This must be however done within 30 days of having the registration done in the Commercial Registry. All of the applicants or registrants will also have to pay a Commercial Registration fee of SAR 2000.
  10. Registering with Department of Zakat and Income Tax: The business will need to register with the DZIT to get a file number and the Certificate of Commencement of Business
  11. Registering with General Organization of Social Insurance: All the employees and employers will have to register to the GOSI
  12. Registering with Municipality and Labor Office: All companies must obtain Municipal License prior to registering with Labor Office. Then they must register with Labor Office to start hiring people.

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