By To start a business in Saudi Arabia, you will need to register it with the Ministry of Labor and Social Development. This is the first step in getting permission from the government. The second step you will have to take is to register it with the General Organization of Social Insurance (GOSI).
After that, you’ll have to prove that you have the ability to pay employees’ salaries. This is what the Saudisation quota system is all about. The government requires that companies should hire more Saudi nationals than they are allowed under the Setting up a Business in Saudi Arabia quota system.
Get Permission from The Government
If a company is found to be using foreign workers instead of Saudis, they are likely to lose government contracts. For example, a company that hires only Saudis for its jobs could be fined. If a Saudi worker wants to quit his job and work for a different company, he needs permission from GOSI to do so.
This is a very serious problem in Saudi Arabia. Companies that employ foreigners are more profitable because they pay less in payroll and taxes. They also pay less in wages, which are also lower than those paid to Saudis. In order for a foreign employee to switch to another company, he needs permission from the government to work in the other company. The employer of record has to provide a certificate from GOSI showing that the employee is eligible to work in the new company.
Conclusion
Unlock valuable insights on navigating the complex process of acquiring government approvals and permits. Explore the key factors, requirements, and considerations involved in securing necessary permissions. Start your journey towards obtaining government permission with confidence and efficiency.
