A branch office is an extension of a foreign company operating under the parent company’s name and regulations in Saudi Arabia. It allows foreign companies to establish a physical presence in KSA without forming a separate legal entity.

Benefits of a Branch Company:

• Direct Market Access: Reach the Saudi Arabian market without the complexities of forming a separate company.
• Maintain Control: The parent company retains full control over the branch office’s operations and finances.
• Limited Liability: The parent company’s liability is limited to the branch office’s assets.
• Local Sponsorship: The branch does not require a local sponsor, it must comply with Saudi regulations

Key limitations of establishing a branch company in Saudi Arabia

• Legal Restrictions: A branch is not considered a separate legal entity; it operates under the parent company’s name, which may limit certain legal protections.
• Scope of Activities: Branches can only engage in activities specified in the license obtained from the Saudi authorities, which may restrict operational flexibility.
• Profit Repatriation: Restrictions may apply regarding the repatriation of profits back to the parent company, which can affect financial planning.
• Regulatory Compliance: Branches are subject to the same regulations and compliance requirements as local companies, including taxation and reporting obligations.
• Management Control: The parent company retains overall control, which can complicate decision-making and responsiveness to local market conditions.
• Potential Liability: The parent company may be held liable for the actions and obligations of the branch, exposing it to greater risk.

Requirements for establishing a branch company in Saudi Arabia

1. Parent Company Documents
   • Must be attested by the Saudi Embassy.
   • Includes business license, Memorandum of association, Last year’s audit report, and power of attorney.
2. Required Capital
   • Varies based on the chosen business activity.
3. Company Name
   • Must be unique and compliant with Saudi regulations.
4. Shareholder Details
   • Includes passport copies and personal information of all shareholders.

Steps to establish a branch of a foreign company in Saudi Arabia

• Attest parent company documents through the Saudi Embassy
• Choose a business name and activities
• Provide shareholder details and required capital
• Obtain an investment license from MISA
• Notarize Articles of Association
• Issue Commercial Registration (CR)
• Register national address and relevant government portals
• Open a corporate bank account

Benefits of Using Arab Dreams for Your Branch Company Formation

1. Streamlined Process:
   We handle all legalities and paperwork, ensuring smooth and efficient company formation.
2. Local Expertise:
   Our team’s deep knowledge of Saudi Arabian business regulations helps you save time and resources.
3. Multilingual Support:
   We provide seamless communication in English , Hindi and Arabic, eliminating language barriers..
4. Tailored Solutions: We provide personalized strategies aligned with your business objectives.

Next Steps

Looking to expand your international presence with a branch in Saudi Arabia? Arab Dreams offers expert guidance to streamline the entire process, ensuring smooth registration and compliance. Let us help you establish your business footprint in the Kingdom with ease.

Contact Us to Setup Foreign Company Branch in Saudi Arabia

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