Both local and foreign investors can open recruitment companies in Saudi Arabia. For this purpose, they need to comply with the requirements of the General Investment Authority (SAGIA) and the Ministry for Labor and Social Development. The first is in charge of the company registration procedure, while the second will handle the licensing process.
Below, our Saudi company formation agents explain how to set up such a business and the two types of recruitment licenses you can obtain. You can rely on us for support in opening your staffing agency in Saudi Arabia.
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Business forms available for starting a recruitment agency in Saudi Arabia
There are several ways to open a recruitment company in this country. You can choose to operate as a sole proprietor, in a partnership, or by registering a Saudi private limited liability company. The choice depends on how large you want your business to be.
Our local specialists can assist you no matter the business form you choose for your staffing company in Saudi Arabia. As a tip, you can first search the market to see where your company can find a niche that suits it.
Recruitment licenses in Saudi Arabia
As mentioned earlier, there are two types of business licenses you can choose between when setting up a recruitment company in Saudi Arabia. They are:
- the license for local recruitment which enables you to match Saudi citizens with local companies;
- the international recruitment permit which allows you to match Saudi and foreign nationals with local and international businesses with activities here.
The requirements to apply for them are the same and imply preparing various documents. You can rely on our company registration advisors in Saudi Arabia for support in drafting the paperwork.
Documents required to obtain a Saudi recruitment license
The list of papers you need to prepare when applying for a recruitment license is not extensive, however, it must be drafted correctly. It entails the following:
- proof of having a suitable place for completing recruitment activities;
- a business plan;
- financial projections;
- proof of sufficient capital to run the business;
- copy of the Registration Certificate issued by the SAGIA;
- copy of the identification papers of the shareholders;
- the clear criminal record of the person applying for the license;
- financial statements for the past 3 years.
Please note that in the case of foreign-issued documents, they must be translated into Arabic and notarized. If you are a foreign investor, you can rely on our local advisors for support with the correct preparation of the required papers. They will be filed with the Human Resources and Social Development Department.
Certificates required when applying for a recruitment agency license in Saudi Arabia
Apart from the usual documents specified above, opening a recruitment company in Saudi Arabia also implies filing a few specific papers. Among them are:
- performance evaluation certificate which is a record of the activities of the applicant;
- a previous licensing disclosure document, if the company or any of the partners operated in the manpower sector before.
You can rely on our agents for support in preparing these documents, as well.
Rules to be respected by employment agencies in Saudi Arabia
Here are some of the rules to be respected by staffing businesses:
- they are allowed to hire male workers aged at least 21 and female workers no younger than 22 years old;
- they must ensure a minimum salary of 3,000 riyals per month (approx. USD 800) for their employees;
- foreign workers must obtain Saudi Iqamas when brought into Saudi Arabia (it takes about 3 months to obtain this document).
Our local specialists are at the service of companies with immigration services in Saudi Arabia. We also have Saudi accountants on our team to help with payroll.
Feel free to contact us if you want to establish a recruitment company in Saudi Arabia and need assistance.