Saudi Arabia, famous for its rapidly developing market of digital entertainment and vision of diversification of the economy by the 2030 year, has become a magnet for international developers of games. The stable annual growth of the sector reaches 10%, which makes it especially attractive for investors and entrepreneurs from all over the world. Before closely engaging in the creation of a company for the development of games in this region, it is important to understand the legal environment and prepare for possible challenges. Learn more about company formation in Saudi Arabia.
Exciting Journey: Process of Registration of Company
Registration of a company in Saudi Arabia is meticulous but fascinating. It provides unique opportunities for studying the local legal system. Consider a detailed description of the stages of registration:
- Choice of the organizational-legal form: Most suitable form for foreigners — Limited Liability Company (LLC). This reduces individual risk and allows smooth integration into the country’s economy. In 2022, about 75% of all foreign investors chose this form.
- Registration in Ministry of Commerce and Investment (MCI): This initial stage includes submission of applications and founding documents. Here, it is important to prove financial solvency. According to statistics, 80% of applications are accepted from the first submission with the completeness of documents.
- Obtaining of investor’s license from SAGIA: Necessary license confirms right to business in the state. Successful approval of this license is possible only with the presence of a thoroughly thought-out business plan. On average process takes 3-6 months.
- Registration in tax authorities: Accounting in Tax Administration obligatory for payment of VAT and other taxes. This step guarantees legal and successful activity on the market.
Key Licenses: Your Pass to Successful Market
To calmly and confidently work in the field of development of games, especially in Saudi Arabia, it is necessary to obtain several important licenses:
- License for development of software: Ministry of Communications and IT provides this license for confirmation of the legality of your activity. In 2023, more than 100 such licenses were issued.
- Permission for activity in media sector: Obligatory for exit of product on mass market. Without it, it is impossible to release the game legally.
- Certification of content: Check for compliance with cultural and religious norms. This is one of the most strict stages since the country strives to protect its cultural identity. Annually produced more than 500 thousand checks of content.
Overcoming Barriers: Legal Challenges
The implementation of business in Saudi Arabia is associated with overcoming specialized legal challenges. Consider in detail:
- Complexities with questions of ownership: Restrictions on foreign ownership of business can complicate work. In 70% of cases, it requires a local partner, which can add complexities to management.
- Partnerships with local companies: Necessary thorough work when selecting partners and concluding agreements to avoid future nuances.
- Labor legislation and norms of Saudization: Understanding and compliance with labor norms is specific and requires attention to hiring a certain percentage of local workers.
Useful Tips for Navigation in Legal System
Develop a strategy of interaction with legal authorities worth on initial stages of opening the business:
- Attraction of experienced legal consultant: Working with an expert, you can avoid many problems and accelerate the process of registration.
- Establishing of interaction with authorities: Establishment of good contacts with important structures will allow prompt solving of arising questions.
- Acceptable business plan: Consider local cultural and economic realities for a successful invasion of the market.
Success Stories: Visual Examples
Refer to examples of companies that managed to rise to the top of success in Saudi Arabia:
- Example Games: International company found correct levers for development in partnership with local media gurus, as a result of which accelerated certification and release of the product on the market.
- Digital Playground: Application of franchising strategy helped bypass strict limitations and occupy a worthy place in the market game.
Services for creation of companies in Saudi Arabia
Business for development of games in Saudi Arabia attractive by its prospectivity and possibility to capture extensive audience thanks to active demand and governmental support in sector of technologies.
“The only impossible journey is the one you never begin.” –Tony Robbins