When you are a business person, there is a lot to think about. From your company’s financial status, your employees, to the new development possibilities. And when you are planning to start a new business somewhere, the task is even more complicated. But, that is a natural state of affairs. However, the most important decision you have to make when starting a new business is where to settle it down. And the choices are numerous, of course. In the search for the best, there are many aspects to consider. Think about the financial aspects of the state you want to settle your business in. Or about their foreign investment policies. Anyway, it is desirable to make good research. And we can help out there. If your choice is Saudi Arabia, especially its capital, here is a quick and helpful guide to starting a business in Riyadh.
A few words about Riyadh
Riyadh is the capital of Saudi Arabia. It is situated in the eastern part of the Najd plateau. As the third-largest city in the Arab world, Riyadh is a political, financial and administrative center. The economic importance of the city of Riyadh is reflected in the fact that it is a residence of many great and important companies and banks. Its population is growing fast each day, and the number of immigrants in this city increases constantly. So, if you are a businessman, and you are preparing to move somewhere, maybe this is the right place for you.
Why is it good to think about starting a business in Riyadh?
Over the years, Saudi Arabia has developed a pretty admirable basis for business opportunities. Therefore, its cities, and especially its capital, have become some of the most preferred destinations for foreign investors all over the world. The conditions they offer are acceptable and the possibilities of succeeding in business are huge. So, if you are searching for something like this, hesitate no more. Find the best way for the easy distribution of your goods, and follow the tips for starting a business in Riyadh right away.
It is always useful to have a good insight into the region you want to settle your business in. Do research on the business sector you want to take part in. Study the market possibilities, and of course, the competition involved. That way, you would have a ready and persuasive plan, but you would also know what to expect when you come there.
Get to know the culture of Saudi Arabia
If you are pondering about moving to Riyadh, and starting a business there, first try to learn something about the culture of Saudi Arabia. This business rich country is highly conservative in may aspects. They have some unique cultural beliefs, and this conservative ideology is reflected in the business view too. Therefore, some basic knowledge of their views and culture may help a lot. It can make the essential distinction between a well done and successful job agreement and the one which would be a total failure. So before you undergo the inevitably stressful moving process, think about your readiness to comply with all the rules.
For example, there is one business cultural habit or rule that may be very interesting. Namely, they put a great accent on developing human relationships rather than focusing on the business part immediately. People in this country, therefore in Riyadh too, would always take some time to get to know the people they are working with.
When starting a business-first steps
Now, when you have definitely decided to start your business in Riyadh it is good to learn something about their laws, too. Generally, their law requires you to have a local partner in their country, if you want to start your business. Since having a local partner is not very profitable, for many reasons, this restriction has an impact on foreign investment. Therefore, they employed a government entity called SAGIA. This entity can ensure a license for foreign investors to start their companies legally, but without a partner.
If you are a foreign investor, and you are willing to start your business in Saudi Arabia, there would be many options for you. And be sure that you would find something that suits your criteria because they strongly encourage the development of the private sector there. However, when starting a business in Riyadh you should be informed about some restrictions that can be imposed, as well. Of course, those restrictions depend on the industry that you are involved in. But, be sure that your investment is highly welcomed, especially if you will bring some new technology in the country. So, if you are innovative and willing to expand your opportunities, you will find your place in Riyadh. Look for the warehouse that will meet your standards, and relocate all your goods to Saudi Arabia.
The issue of taxes
When it comes to the issue of taxes, you may relax. In Riyadh, you would find a unique tax system. Namely, taxes for foreign investors are reduced, and there is no personal income tax. And when it comes to companies, they would file for tax depending on whether they are in a resident or non-resident entity category.
To sum up
A decision to start a business is really a serious one. But it is only if you are brave enough, that you can reach the highest goals. Be determined and try to have a practical insight into all the aspects of your future challenges. Find the best place and try your luck. And if you consider starting a business in Riyadh, the capital of Saudi Arabia, here is our little guide.
Let’s review the basic points:
- make a good research about the region you want to start your business in
- get to know its culture and laws
- find out about the restrictions and taxes imposed