The services of the engineering consultation companies in Saudi Arabia include everything related to engineering projects, such as the design and supervision of residential and commercial projects. Besides construction management, city planning and organization, and building extension and maintenance. In addition to heating, cooling, and drainage,. To establish an engineering consulting company in Saudi Arabia, you must adhere to terms and conditions set by governmental bodies and stakeholders in the Kingdom.
This article will detail the most important terms and conditions to ensure compliance with laws and regulations.
Setting Up an Engineering Consultations Company in Saudi Arabia
To obtain an engineering consultancy license in Saudi Arabia, the following conditions must be met:
1. Qualifications and Authorizations: The applicant for the license must have the appropriate educational qualifications or statutory approvals related to the engineering disciplines he/she wishes to practice.
2. Good Conduct: The applicant for the engineering consultancy license must have a good reputation and conduct and must not have been convicted of any dishonesty.
3. Equipment and Technical Staff: The license holder must provide the technical staff, equipment, devices, and tools compatible with the type and size of the engineering works and activities he intends to practice.
4. Supervision and Management: The license includes supervision and management throughout Saudi Arabia and a qualified manager to manage each branch. The license holder and the manager are responsible for all violations and transgressions from these branches. When new activities are added to the main branch, they are automatically added to the branches.
5. Approval and Supervision: The license holder must obtain MISA approval when opening any branch according to the specified conditions. The branch manager must be a Saudi engineer and not conflict with other regulations.
6. Advertising and Promotion: The license holder must post a signboard indicating the official working hours and displaying the license and accreditation certificates for technical staff. No more than five accreditation certificates.
7. Partners and Legal Entities: A Saudi partner is not required in most investments, except for specific activities such as insurance, reinsurance, and telecommunications. A Saudi individual can participate in the company to be licensed with proof of his/her profession.
Consultancy License Requirements in Saudi Arabia
- Obtaining a professional license from the Saudi Board of Engineers, and if there is a license in the home country, it must be brought along with the scientific certificates. All documents must be certified according to the specialization and the targeted activity.
- Owning a company in the home country or three other countries, provided that it has been established for more than 10 years. The experience of at least one year is required for all other activities.
- A copy of the passports of the owners and the CEO, indicating whether he is a resident or non-resident of the Kingdom.
- The company must have financial statements for the previous year. The company’s profits must exceed the equivalent of SAR 300,000.
- The Ministry of Investment does not require foreign companies to have 75% Saudi Arabians in any sector.
- The new company is not required to provide any bank guarantee.
If one of these conditions is not met, a 25% Saudi partner must have the appropriate educational qualification for the engineering consultancy license. The partner must have more than 5 years of experience in the field and be qualified and registered with the competent authorities.
Legal Entities of Consultancy Companies in Saudi Arabia
The legal entities allowed to operate in Saudi Arabia are either a limited liability company or a sole proprietorship with limited liability. In addition to a joint stock company entity, or a branch of a foreign company. The following entities are some of the most common legal forms in the Kingdom:
1. Branch of a foreign company
To establish a branch of a foreign company in Saudi Arabia, the following conditions must be met:
- Carry the same trade name and engage in the same activities as the parent company.
- Appoint one executive director.
- Cannot open branches, acquire, or partner with other companies.
2. Independent Limited Liability Company
In the case of establishing an independent limited liability company, the foreign investor can obtain the following benefits:
- It can adopt the same trade name or a different, meaningful Arabic name.
- One or more directors can be appointed with equal or different powers.
- Own 100% of the parent company’s capital.
- It can acquire shares in other companies, enter into tenders, and purchase real estate.
Establishing an engineering consultation company in KSA is an important opportunity and a profitable strategy for engineers and industry experts. With the Kingdom’s political and economic stability and advanced infrastructure. These privileges are motivating factors for entrepreneurs who seek to offer their engineering services on a wide professional scale. They also create an ideal environment for innovation and development for aspiring entrepreneurs and promote the integration of foreign investments into the Saudi market.
Business Link has been working closely with MISA since 1999, plugging in high-growth companies into Saudi Arabia. Our team of experts streamlines your entry into Saudi Arabia. We are committed to providing investors with soft landing solutions and office spaces that include a national address, complemented by our comprehensive compliance and financial administrative services.
