1. What are the types of entry visas to the Kingdom?
There are four types of entry visas to the Kingdom:
- Investor visas
- Business visit visas
- Employment visas
- Family visit visas
2. Is it necessary for an investor or his representative to visit the Saudi Embassy/
Consulate to apply for a visa? Or is it possible to obtain the visa via post?
Yes, it is necessary for the investor or his representative to visit the Saudi Embassy/Consulate
to apply for a visa. And it is also possible to obtain the visa via post in some
countries like USA and some European countries.
3. Is it possible to speed-up the visa requirement formalities in emergency cases?
Generally yes, but it depends upon the nature of each case.
4. What is the percentage of partnership required for becoming an investor, and
accordingly, benefit from all services and incentives provided to the foreign investors?
The Foreign Investment Act provides equal rights to the investment license holders
regardless of their partnership percentage. The Foreign investor can own a larger
percentage than his Saudi partner, however not less than the minimum percentage
required under the Act governing the companies in Saudi Arabia which is minimum 5%.
5. What are the charges of Foreign Investment License?
The charges of Foreign Investment License are as follows: New License fee = SR.
2,000.
Modification of License = SR. 2,000.
6. Do the GCC nationals have more incentives compared to other foreigners?
Yes, GCC nationals are allowed to practice wholesale and retail trade, which falls
within the exception list, and thereby not open for foreign investment.
7. Is there a limit to the number of partners at the registration of a foreign investment
company?
No, there is no limit.
8. Is SAGIA License Regulation controlled by the company registration in the Kingdom?
Yes, it is.
9. Should the foreign owned company also have to comply with the Saudization percentage
directed by the Ministry of Labour & Social Affairs?
Yes, it should comply.
10. Does the date of license start from the date of payment of license fee or from
the date of activation?
From the date of payment of license fee.
11. Is one "letter of interest" enough to support more than one license?
No, each applicant should submit a seperate "Letter of Interest"
12. Can we apply for more than one license at one time?
Yes, you can.
13. Does SAGIA give any permit to establish an investment company in Saudi Arabia
that would vend financial bonds for some provincial public projects?
No, financial investment companies receive their approval from the Saudi Arabian
Monetary Agency (SAMA), not from SAGIA.
14. I am a non-Saudi resident interested in investing as a foreign investor. Can
I do so?
According to Article (6) Item (3) of the Executive Rules of the Foreign Investment
Act, the license applicant should be a person who has come to the Kingdom for the
purpose of investment. A non-Saudi resident is, therefore, ineligible to become
a foreign investor.
15. If a person is employed by the Saudi government, can his/her spouse invest in
the country in a business then change his/her status from dependant to self-employed?
According to the latest amendment of the investment regulation, an investor is defined
as the person who enters the
Kingdom of Saudi Arabia
with the intention to invest. Therefore, residents cannot change their status to
investors.
16. Does SAGIA require the investor to open a bank account to transfer the minimum
capital requirement into Saudi Arabia?
The investor may deposit the money in any local bank and have a certificate of deposit
issued without opening a bank account.
17. Does SAGIA issue permits in the field of high school education?
No, investment in schools is excluded from foreign investment.
18. Can an investor use capital-required money once the company registration is
received? And is there any restriction on the withdrawal or use of this money?
Yes, funds can be used to operate the company; whereas, there is no restriction
on withdrawals.
19. Can the investor start an engineering consultancy in the Saudi Arabia?
Licensing for engineering consultancy is to be obtained from the Ministry of Commerce
& Industry, not from SAGIA.
20. Whether training (which includes teaching languages) or consulting institute
can obtain license through SAGIA or should it be reviewed and approved by
the Ministry of Education?
A foreign investor may engage in the mentioned activities in Saudi Arabia. However,
a preliminary approval from the Ministry of Education is required for teaching languages.
21. What is the highest foreign share that a partner can own in a mobile or fixed
operator?
70% ( if a mobile of a fixed operator is meant to be in relation with
Saudi telecommunication company (STC), then their approval is vital )
22. What are the sectors of economy available for investors and can be licensed
by "SAGIA"? and what is the minimum capital requirement needed for each activity.
The law permits foreigners to invest in all sectors of economy, except for specific
activities contained in the negative list.
In respect to the capital requirements needed, these are as follows:
SR.100,000 for individual establishments
SR. 500,000 for companies
SR.1,000,000 for industrial projects
SR.25,000,000 for agricultural projects.
23. How much time is needed to complete the formalities for obtaining a visa?
Investor visas - one to two days
Business visit visas - one to two days
Employment visas - three weeks
Family visit visas - one day.
24. What are the documents required for obtaining family visa?
Following documents are required:
a) Duly filled Visa Request Form
b) Copy of Investors License
c) Photocopy of all the pages of valid passport and Iqama (identity card)
d) Original passport and iqama for verification.
25. Is it permissible to use Business visa for employment purposes?
No, it is not permissible to use a Business visa for employment purposes.
26. Is there any minimum wage?
At present there is no such law.
27. Are there trade unions and worker associations in the Kingdom?
Labor authorities have passed a new regulation allowing workers in different sectors
to form their associations and committees to handle various labor issues in cooperation
with their employers.
28. How can workers/professionals be hired?
Through newspaper advertisements, internet job sites or recruitment agencies spread
all over in the Kingdom.
29. Can the foreign investor sponsored by his licensed project, keep his passport
and finalize the procedures for himself and his family members at the passport department
by himself ?
Under the new Foreign Investment Act, the owner or the foreign partner in a licensed
project has the right to keep his passport and himself finalize the procedures for
himself and his family members at the passport department.
30. If the resident owns two (or more) investment licensed projects, will his sponsorship
be on one or both of these?
His sponsorship will be on the first project and may be transferred to the second
project in case of cancellation of the first one.
31. What are the percentage of taxes imposed on the foreign investor and the Saudi
partner? Are there any tax incentives offered to the foreign investor in case of
establishing a joint venture with a Saudi national or company?
According to the New Tax Law, the percentage is fixed at 20% on profit while indefinite
losses are carried forward to the next year. The Saudi partner will have to pay
2.5% zakah as tax.
32. How to fulfill the capital requirements, should it be monetary or in kind? Is
the resident foreign investor required to bring capital from outside the Kingdom?
The capital manifested in the license is assigned for the construction and operation
of the project. The annual budget and the Settlement of Zakat and Income Tax Department
can verify it. Its source is left for the investor to decide.
33. Is the company commercial naming process, controlled by the regulation in effect
at the Ministry of Commerce and Industry?
Yes, the company commercial naming process is controlled by the regulation in effect
at the Ministry of Commerce and Industry.
34. If we bring any machinery from out side on lease basis, can we transfer lease
payment through the bank or does it require permission from Sagia? (For some equipment
there is no dealer in Saudi Arabia or they don't have leasing system)
Yes, you can transfer lease payments to vendors, SAGIA approval is not needed.
35. Do we need another license or do we need to pay extra if we open more branches in other cities?
36. Do we need another license or pay extra, if we open more branches in the same
city?
37. How can I get a contractor classification (Tasneef) in order to participate
in Government tenders?
38. Are there any annual fees after registration?
39. Is registration fee refundable?
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