A- Procedures for obtaining temporary licenses for foreign companies contracting with government bodies for executing of specific works.
a.Licenses procedures
◦The foreign company shall apply for a license to implement its contracts within thirty days from the date of signing the contract and to secure the following documents:
1.Entry application and two forms approved by the government body (Form exists in the Directorate of Companies).
2.Copy of the company?s contract with the government body.
3.Copy of the authorization issued to the company manager in the Kingdom. If it is written in a foreign language an Arabic translation from a certified office shall be attached. It is necessary that authorization be legalized by Saudi consulates abroad if it has been written abroad.
4.Copy of the commercial registration of the Saudi agent or a copy of the licensing of the agent to practice the consultancy, if the foreign contractor conducts consultancy work.
5.Copy of the agency contract between the company and the agent in Saudi Arabia.
6.Certificate from a bank which is known and accepted by SAMA defining the ability of the company, its financial reputation and financial and business dealings.
7.Statement of the work carried out by the company outside the Kingdom in the domain of the project, which has to be implemented within the Kingdom. Contents of this statement should be authenticated by the Chamber of Commerce in the country of the company.
8.Completion certificates obtained by the company from the works carried out whether inside or outside the Kingdom.
9.Copy of the balance sheet of the company and the profit and loss account for the last two years certified by a recognized chartered accountant office.
After considering the application by the Directorate of Companies and the approval of His Excellency the Minister of Commerce on licensing the company, a temporary license will be issued for the duration of the implementation of its contracts. Then the company writes to the office of commercial registration to register the company in the commercial register. The manager of the company has to report to the Commercial Registration Office for the completion of the procedures of the registration and filling in of Form 1.9. The form to be signed before the concerned official and payment of the fees as per the type of company and submit the following documents:
■Copy of passport of the manager in charge in Saudi Arabia, copy of residence permit card and labor card.
■Copy of the lease contract of the company's premises.
■All the documents to be submitted in a hanger file.
After this, the company will be registered in the commercial register and the certificate of registration shall be handed over to the Manager of the company.
b.Procedures for amendment of licenses
◦In the event of having a new contract with the government, or amendment of the previous contract, within 30 days, the company shall apply to the directorate of companies with the following attachments:
1.Original previous license.
2.Copy of a company?s contract with the government body or the amendment order.
3.Fill out two forms (found in the Directorate of Companies) and securing ratification of the government agency with which the company contracted.
4.The agency contract between the company and the Saudi agent and a copy of the commercial registration of the agent.
◦If the license term is extended, the company shall apply to the Directorate of Companies with the following attached:
1.Original previous license.
2.Letter from the employer informing of the approval of the license extension and presenting reasons for extension.
Afterwards, the application shall be considered at Directorate of Companies. If approved, license shall be amended and the company writes to Commercial Registration with the amendments. The manager of the company has to approach the Commercial Registration Office to finalize procedures (fill out Form 10).
B- Licensing procedures for opening a representative office for foreign companies contracting with government agencies to oversee the activities and facilitate contact with the main office:
a.Submittal of application from the foreign company to Directorate of Companies enclosing the following documents:
◦Recommendation from a government body in the Kingdom, organization, public institution, company in which the State participates or public artificial persons contracting with the company.
◦Copy of company?s articles of association and copy of membership certificate in the original homeland.
◦Copy of the decision issued by the company to open an office representing it in the Kingdom.
◦Copy of decision of the company's board of directors authorizing the manager of the office. All these documents shall be duly certified and translated into Arabic language by a certified translation office.
b.After the Directorate of Companies has considered the application and approved it, a decision from the Minister of Commerce shall be arranged to license the company, specifying the city in which the seats of the company's office will be located, number of employees in the light of needs of the company. Number of office staff may only be increased after obtaining prior approval from the Ministry then issuing a license thereto. Write to the Office of the commercial registration in Riyadh or branch office under the ministry. The Manager of the Office to complete the procedures for registration and mobilization (Form 9) at the Office of Commercial Registration and have it signed by the registrar and pay the fees assessed by type of company and attach the following documents:
◦Copy of the passport of the manager of the office, residence permit card and the labor card.
◦Copy of the lease contract of the office.
◦All applications to be submitted in a hanger file.
After this is done, the company shall be listed in the commercial register and Company Registrar shall hand over the registration certificate to the manager of the company.
Courtesy: Ministry of Commerce & Industry, KSA
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TThis English language text is not an official translation and is provided for information purposes only. In the event of any discrepancies between the English translation and the Arabic original, the Arabic original shall prevail.The reader is solely responsible for the use of the information contained herein.
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