Saudi-Based Project Management Company Formation

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.