Saudi distribution company address


  • Incorporation
  • We Are a Leading Manufacturer and Distributor of Food, Healthcare & Consumer Products
  • It needed a future-proof IT solution to address the requirements of collecting meter readings using multiple methods, meter data management, invoice generation and payment collection. MECOMS has greatly improved efficiency and enables Tawzea to realize their vision and to support future expansions into gas and residential networks.

    Company Tawzea, the International Water Distribution Company, was founded in as a joint venture between SISCO and Amiwater: two Saudi multinational giants specializing in water distribution networks and privatization of water distribution systems. Our role is to provide drinking water, recycled water and managing wastewater.

    Later on, the company will expand its scope to include gas and residential networks within the industrial cities. Building a water company from scratch Tawzea, a young organization with new business processes, faced the daunting task of implementing water distribution over a large area to bulk consumers. We must develop the market for specific customer segments such as industry, government, factories, administration and commercial.

    Services towards residential customers can be expanded in the future. Supplies of water are metered, while the sewage can be calculated based on consumption data and specific pollution level factors, which are enforced by the regulator. The system should be flexible to incorporate the new customer segments we will target in the future. The Ferranti team helped us in adopting the new system with a structured implementation and training methodology.

    It took us about a year to implement and map our business processes in the system. We went live with our first billing run in January The metering values are rigorously checked on a technical level syntax, compatibility, etc.

    The Collections and Credit Management modules deal with the settlement of invoices issued by Tawzea. The successful integration with other business applications also added much value to our information flow.

    Normally this would be a time-consuming job. Also, we can rely on the system to generate all the invoices with very little intervention from our side. The system is designed to offer a role tailored approach to increase the operational efficiency and reduce the cost to serve.

    We are not spending time on daily paperwork; we only focus on exceptions. Now we are more confident that we can serve the market with new products.

    It is heavily dependent on its oil industry which comprises almost half of its GDP. There are three types of business forms available to foreign companies in Saudi Arabia. Each of these business forms has distinct advantages and disadvantages, as well as differing scope of business activities, registration requirements and minimum capital requirements.

    In most situations, these requirements are dependent on the degree of commitment a company has to Saudi Arabia, and the proposed business activity. Subsidiary Company A. The minimum capital investment required to establish an LLC is SR , and must have between 2 and 50 shareholders and be managed and represented by one or more managers. There is no Board of Directors, although shareholders often provide for a Board and other management arrangements in the Memorandum of Association.

    A Saudi partner is not required since there are no legal limitations on the percentage of foreign ownership. The LLC must also have an auditor. Both natural persons and corporate entities may be shareholders. In particular, a limited liability company may engage in the full range of activities which fall under the approved objects of the company, and undertake projects in both the public and private sector.

    It is more likely to qualify for financing from the Saudi Industrial Development Fund at favorable rates for any industrial projects. A limited liability company can also sponsor its employees for residency purposes. As such while the objects must be broad enough to allow the company to engage in the activities, if they are too broad SAGIA is unlikely to approve them.

    In addition the dissolution process can be fairly involved and, if any partner chooses not to cooperate, costly. Registration steps 1. Reserve a Company Name An approved name must be reserved before registering a company. A name can be reserved at the Ministry of Commerce and Industry. The name reservation is valid for 2 months and can also be done completely online through the website of the Ministry of Commerce and Industry. Time: Instant online procedure Cost: No charge 2.

    Apply for Investment License at General Investment Authority Obtaining an investment license is the first requirement for the establishment of a Saudi company with foreign shareholders. The following documents must be submitted : A completed standard license application form signed by each applicant, which must include an authenticated declaration that the applicants have reviewed the Foreign Investment Regulation and its Implementing Rules. Time: 3 to 4 weeks Cost: SR 3. Time: 5 days Cost: No charge 4.

    The following documents are usually required : The original articles of association as approved by the Ministry of Commerce and Industry Directorate of Companies signed by the shareholders or their representatives A copy of the certificate of incorporation and articles of association of each shareholder An authenticated power of attorney authorizing the representative of each shareholder to sign the articles of association.

    A copy of each of the identification cards of the two witnesses present A notary public office should be located in the same building of the Unified Center UC.

    The notary public reviews all the documents to make sure they are complete. The notary public is estimated to review up to 15 companies per day, so there may be waiting times. However, the offices are moving towards computerization and electronic notarization, increasing the chances of a faster notarization process.

    Time: weeks Cost: No charge 5. Publication in Official Gazette After having the company documents approved and legalized, the company must publish the company name and a summary of the Articles of Association in the official gazette. Reports on the fees vary wildly, the Doing Business project reports as little as SR while Startup Overseas reports as much as SR for the same step.

    Time: 2 days Cost: approximately SR. Open a Bank Account After completing the above-mentioned steps, a bank account can be opened. Shareholders can now transfer the share capital, and obtain certification stating that the capital has been deposited. It is required to obtain the certificate before the final procedure at the Unified Center.

    Time: 2 weeks. Cost: No charge aside from the capital deposit 7. Therefore, there are no formal procedures for establishing an office aside from arranging lease agreements. Register in Commercial Registry The final step of the registration process is to obtain a commercial registration certificate. Once all the above-mentioned paperwork is sorted and the office and bank account is established, the final registration can be submitted to the Commercial Registry at the Ministry of Commerce and Industry.

    Similar to the steps above, this can be done at the Unified Center by submitting the approved documents. Generally the following documents must be submitted at the Unified Center: An authenticated board resolution from the shareholders appointing their respective board members. Two notarized copies of the articles of association. The bank certificate confirming payment of the capital. A copy of the office lease. Time: 2 days Cost: SR. Register Membership at Chamber of Commerce The Doing Business project states that a company must register at the Chamber of Commerce , and this can be paid at the same building the Unified Center is located in.

    Time: 1 day Cost: SR The Zakat aspect is a religious wealth tax, and is assessed based on taxable income and certain assets. The calculation of Zakat is complex, but the effective rate is 2. Articles of association A copy of the Investment permit. Copies of any other required permits. A certificate of capital deposit at a bank for Saudi companies.

    A copy of the identity card for Saudis or of the passport and resident permit for non-Saudis. Notarized authorization to deal on behalf of the taxpayer with DZIT if applicable. The DZIT has a registration service that can be done directly online via its website. Time days can be done simultaneously with social insurance registration, below Cost: No charge Registration can be done at the GOSI office online through its e-services portal. Time: days Branch Office A. The branch office may engage in commercial activity within the scope of its license.

    Like in most countries, the parent company will assume full liability for all activity undertaken by the branch office. Although not a locally incorporated entity, a foreign company branch in Saudi Arabia is required to deposit an amount equivalent to the capital required for subsidiaries with a local bank.

    The amount is then blocked until issuance of the certificate of registration for the branch by the Ministry of Commerce and Industry.

    A minimum capital of , SAR is required. Branch office registration follows the same general procedure as the registration of a subsidiary, except that there are no Articles of Association to be approved. In addition, the branch may promote and solicit business throughout Saudi Arabia. The formation process is generally simpler than for a company, since no Articles of Association have to be approved and there are no reserve requirements.

    A foreign manager needs to obtain a residence permit as part of the formation process while in the case of a company it may not be necessary to obtain a residence permit during the formation process. Despite not being a locally incorporated entity, the branch office requires both a capital deposit and a similar registration procedure to a subsidiary. Branches can find it difficult to function in Saudi Arabia without a Saudi partner to handle local authorities and procedures.

    The partnership can take the form of an agency or consulting relationship. Given that a branch office is not a separate legal entity and the parent office maintains liability, it suggests that a branch office could prove to be an undesirable option in most cases.

    Registration Steps 1. Reserve a company name An approved name must be reserved before registering a company. Apply at General Investment Authority Obtaining an investment license is the first requirement for the establishment of a Saudi company with foreign shareholders.

    The company or authorized representative must execute and legalize the articles of association before the appropriate notary public. The following documents are usually required to be legalized: The original articles of association Directorate of Companies signed by the shareholders or their representatives A copy of the certificate of incorporation and articles of association of each shareholder An authenticated power of attorney authorizing the representative of each shareholder to sign the articles of association A copy of each of the identification cards of the two witnesses present A notary public office should be located in the same building of the Unified Center UC.

    Currently, the notary public is said to review up to 15 companies per day, so there may be waiting times. However, the offices are moving towards computerization and electronic notarization, so it is likely the notarization process would take a shorter time. Time: weeks Cost: No charge 4. Publication in Official Gazette Publication of the company name and a summary of the Articles of Association in the official gazette is required.

    Open a bank account After the previous steps a bank account can be opened where shareholders can transfer the share capital, and obtain a certificate stating that the capital has been deposited.

    Cost: No charge aside from the capital deposit 6. Once all the above mentioned paperwork is sorted and the office and bank account is established, the final registration can be submitted to the Commercial Registry at the Ministry of Commerce and Industry. Register membership at Chamber of Commerce The Doing Business project states that a company must register at the Chamber of Commerce , and this can be paid at the same building the Unified Center is located in.

    Time: 1 day Cost: SR 9. Time: days can be done simultaneously with social insurance registration, below Cost: No charge TSOs are primarily liaison offices for a manufacturer to provide technical support to the local market via a distributor, while a TCR is a short-term general business established for the purpose of a specific government contract. In particular, a TSO serves only as a liaison between a foreign company and the local market and a Saudi distributor , while a TCR may perform the contracted work operations but may not engage in any other or further general promotion or solicitation of its business es.

    Instead its activities are limited to providing technical information and assistance to the distributor and to users regarding products and market and technical research in connection with the products. Generally, however only foreign pharmaceutical companies can establish a TSO. Non-pharmaceutical companies can do so at the discretion of SAGIA and the Ministry of Commerce and Industry if they can be convinced the products of the company are sufficiently complex enough to justify establishing the TSO.

    This means that TSOs can generally only be used in relation to complex products. However, a TSO would also require the foreign company to enter into a distributorship agreement with a Saudi distributor. While the TSO is still fully owned by the parent company manufacturer , the distributor must write a letter supporting the establishment of the TSO before licensing and registration can be completed.

    The TCR can be obtained for consulting projects, and the actual TCR itself need not be applied for until a contract has been obtained. On the other hand, the TSO is only available for certain types of companies and cannot be involved in any commercial work.

    A TSO also does not have a separate legal identity, making the foreign parent company operating, liable to local legal obligations.

    Later on, the company will expand its scope to include gas and residential networks within the industrial cities. Building a water company from scratch Tawzea, a young organization with new business processes, faced the daunting task of implementing water distribution over a large area to bulk consumers. We must develop the market for specific customer segments such as industry, government, factories, administration and commercial.

    Services towards residential customers can be expanded in the future. Supplies of water are metered, while the sewage can be calculated based on consumption data and specific pollution level factors, which are enforced by the regulator. The system should be flexible to incorporate the new customer segments we will target in the future. The Ferranti team helped us in adopting the new system with a structured implementation and training methodology. It took us about a year to implement and map our business processes in the system.

    We went live with our first billing run in January The metering values are rigorously checked on a technical level syntax, compatibility, etc. A copy of each of the identification cards of the two witnesses present A notary public office should be located in the same building of the Unified Center UC.

    The notary public reviews all the documents to make sure they are complete. The notary public is estimated to review up to 15 companies per day, so there may be waiting times. However, the offices are moving towards computerization and electronic notarization, increasing the chances of a faster notarization process.

    Time: weeks Cost: No charge 5. Publication in Official Gazette After having the company documents approved and legalized, the company must publish the company name and a summary of the Articles of Association in the official gazette. Reports on the fees vary wildly, the Doing Business project reports as little as SR while Startup Overseas reports as much as SR for the same step. Time: 2 days Cost: approximately SR. Open a Bank Account After completing the above-mentioned steps, a bank account can be opened.

    Shareholders can now transfer the share capital, and obtain certification stating that the capital has been deposited. It is required to obtain the certificate before the final procedure at the Unified Center. Time: 2 weeks. Cost: No charge aside from the capital deposit 7. Therefore, there are no formal procedures for establishing an office aside from arranging lease agreements.

    Register in Commercial Registry The final step of the registration process is to obtain a commercial registration certificate. Once all the above-mentioned paperwork is sorted and the office and bank account is established, the final registration can be submitted to the Commercial Registry at the Ministry of Commerce and Industry. Similar to the steps above, this can be done at the Unified Center by submitting the approved documents. Generally the following documents must be submitted at the Unified Center: An authenticated board resolution from the shareholders appointing their respective board members.

    Two notarized copies of the articles of association. The bank certificate confirming payment of the capital. A copy of the office lease. Time: 2 days Cost: SR. Register Membership at Chamber of Commerce The Doing Business project states that a company must register at the Chamber of Commerceand this can be paid at the same building the Unified Center is located in.

    Time: 1 day Cost: SR The Zakat aspect is a religious wealth tax, and is assessed based on taxable income and certain assets. The calculation of Zakat is complex, but the effective rate is 2. Articles of association A copy of the Investment permit. Copies of any other required permits. A certificate of capital deposit at a bank for Saudi companies.

    A copy of the identity card for Saudis or of the passport and resident permit for non-Saudis. Notarized authorization to deal on behalf of the taxpayer with DZIT if applicable. The DZIT has a registration service that can be done directly online via its website.

    Time days can be done simultaneously with social insurance registration, below Cost: No charge Registration can be done at the GOSI office online through its e-services portal. Time: days Branch Office A. The branch office may engage in commercial activity within the scope of its license. Like in most countries, the parent company will assume full liability for all activity undertaken by the branch office.

    Although not a locally incorporated entity, a foreign company branch in Saudi Arabia is required to deposit an amount equivalent to the capital required for subsidiaries with a local bank. The amount is then blocked until issuance of the certificate of registration for the branch by the Ministry of Commerce and Industry.

    A minimum capital ofSAR is required. Branch office registration follows the same general procedure as the registration of a subsidiary, except that there are no Articles of Association to be approved. In addition, the branch may promote and solicit business throughout Saudi Arabia.

    The formation process is generally simpler than for a company, since no Articles of Association have to be approved and there are no reserve requirements. A foreign manager needs to obtain a residence permit as part of the formation process while in the case of a company it may not be necessary to obtain a residence permit during the formation process.

    Despite not being a locally incorporated entity, the branch office requires both a capital deposit and a similar registration procedure to a subsidiary. Branches can find it difficult to function in Saudi Arabia without a Saudi partner to handle local authorities and procedures.

    The partnership can take the form of an agency or consulting relationship. Given that a branch office is not a separate legal entity and the parent office maintains liability, it suggests that a branch office could prove to be an undesirable option in most cases.

    Registration Steps 1. Reserve a company name An approved name must be reserved before registering a company. Apply at General Investment Authority Obtaining an investment license is the first requirement for the establishment of a Saudi company with foreign shareholders.

    Incorporation

    The company or authorized representative must execute and legalize the articles of association before the appropriate notary public. The following documents are usually required to be legalized: The original articles of association Directorate of Companies signed by the shareholders or their representatives A copy of the certificate of incorporation and articles of association of each shareholder An authenticated power of attorney authorizing the representative of each shareholder to sign the articles of association A copy of each of the identification cards of the two witnesses present A notary public office should be located in the same building of the Unified Center UC.

    Currently, the notary public is said to review up to 15 companies per day, so there may be waiting times. However, the offices are moving towards computerization and electronic notarization, so it is likely the notarization process would take a shorter time. Time: weeks Cost: No charge 4. Publication in Official Gazette Publication of the company name and a summary of the Articles of Association in the official gazette is required.

    Open a bank account After the previous steps a bank account can be opened where shareholders can transfer the share capital, and obtain a certificate stating that the capital has been deposited. Cost: No charge aside from the capital deposit 6.

    We Are a Leading Manufacturer and Distributor of Food, Healthcare & Consumer Products

    Once all the above mentioned paperwork is sorted and the office and bank account is established, the final registration can be submitted to the Commercial Registry at the Ministry of Commerce and Industry. Register membership at Chamber of Commerce The Doing Business project states that a company must register at the Chamber of Commerceand this can be paid at the same building the Unified Center is located in. Time: 1 day Cost: SR 9.


    Saudi distribution company address