Case Study - Project Management
Saudi-Based Project Management Company Formation
A case study in the establishment of a new branch for a business
A major UK infrastructure design company with offices throughout the Middle East region wished to establish a branch office for its subsidiary project management services company as a 100% foreign owned company in Riyadh, Saudi Arabia.
The establishment of a subsidiary project management business as a 100% foreign owned company under a SAGIA investment licence was intended to serve to establish a foothold for the company in the Kingdom and would enable the Group to achieve a degree of familiarisation with the market, prior to seeking the involvement of a local partner or sponsor.
To facilitate the establishment of its project management business, the company sought local relationships in the form of non-exclusive local business advisory and project development agreements. They also entered into discussions with a number of key players for a number of strategic business alliances to target specific industry sectors.
The process of company establishment involved the consultants in a process lasting approximately 15 months that involved:
- Liaison with an accounting company to prepare and submit application to SAGIA for an investment licence
- Subsequent application to the Ministry of Commerce and Industry (MOCI) for the commercial registration process
- Negations with commercial property owners for the rental of city centre office accommodation
- Recruitment of key members of staff including GOSI and compulsory medical insurance
- Locating and securing private accommodation for senior members of staff
- Chamber of Commerce registration
- Tax and Zakat registration
- Setting up banking facilities and lodge required capital sum
- Acquisition of vehicles and office furniture, equipment and supplies
- Arranging office and accommodation utilities connections
- Arranging company accounting and audit services.
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