Proposal by Eastern & Co. for Legal and Financial Advisory Services

Below are the core services and legal matters our office commits to providing in relation to foreign investment in Egypt, the United Arab Emirates, Saudi Arabia, and the Middle EastLegal advice regarding economic activities in Saudi Arabia.

-Legal consultations on the appropriate foreign investment license based on the activities selected by the company.

-Completing, submitting, and following up on MISA license applications with the Saudi Ministry of Investment.

-Representing your company in the establishment and registration of a new company or foreign branch with the Saudi Ministry of Commerce.

-Drafting the articles of association for the new company and following up with the Saudi Ministry of Commerce for submission.

-Following up on the establishment process and obtaining the company's commercial registration with the Ministry of Commerce.

-Completing notarization with the Ministry of Commerce, formalizing the articles of association, and issuing the commercial registration.

-Providing legal advice on Saudi laws and regulations, including the Companies Law and regulations related to the company's activities.

-Preparing all required powers of attorney related to the company’s activities.

Required Documents:

-A certified copy of the parent company's articles of incorporation, authenticated by the Saudi Embassy and the Egyptian Ministry of Foreign Affairs.

-A recent extract from the parent company's commercial registry (authenticated by the Saudi Embassy and the Egyptian Ministry of Foreign Affairs).

-The latest financial statement of the parent company (authenticated by the Saudi Embassy and the Egyptian Ministry of Foreign Affairs) – a minimum profit requirement of 500,000 Saudi Riyals.

-An administrative decision from the parent company authorizing the establishment of a legal entity in Saudi Arabia, signed, stamped by the company, and authenticated by the Saudi Embassy and the Egyptian Ministry of Foreign Affairs.

-A partners’ resolution to appoint the company's general manager, outlining their powers, in addition to specifying the company's location and registered capital.

-Identification copies for the partners and the executive manager, noting if they are residents of Saudi Arabia or not.

-A copy of the executive manager's passport, noting if they are a resident of Saudi Arabia or not, authenticated by the Saudi Embassy and the Egyptian Ministry of Foreign Affairs.

-A power of attorney for the Eastern & Co. team to establish the company and complete all necessary procedures (as per the format determined by the team).

-For countries party to the Apostille Convention, only Apostille certification is required, without embassy authentication.

Company Establishment or Branch Opening Procedures:

Types of Establishment:

1. Company Formation:

Company Origin: Saudi company

Timeline: Short (3-4 weeks)

Trade Name: Free to choose trade name

Ownership: 100% Saudi-owned by foreigners

2.Branch Establishment:

Company Origin: Foreign company

Timeline: Short (4-6 weeks)

Trade Name: Same name and brand as parent company

Ownership: 100% foreign-owned branch

Types of Companies:

Limited Liability Company (LLC)

Saudi Joint Stock Company

Simplified Joint Stock Company

Simple Partnership Company

General Partnership Company

Establishment Procedures:

Following up with the Ministry of Municipal and Rural Affairs - Ejar platform inspection

Opening a bank account to deposit capital and complete transactions

Company manager (responsibilities and residency)

Electronic invoicing

Ministry of Human Resources and Social Development

Qiwa platform registration

Social Insurance registration

Zakat, Tax, and Customs Authority (Income Tax and Zakat)

VAT registration at 15% of total sales if mandatory threshold of 375,000 SAR is met

Note: Actual capital deposit is not required.

1.Types of Licenses:

2.Ministry of Investment (Activity):

Service license (Import/Export, IT, Healthcare, Insurance, Advertising)

Commercial license with Saudi/foreign partner (100%)

Industrial license

Professional license with Saudi or non-Saudi partner

Consulting license for engineering offices

Agricultural license

Mining license

Note: Each license has specific requirements based on an analytical study of the company’s situation to choose the appropriate license.

Liquidation Procedures:

Liquidation is conducted through submitting a cancellation statement, with deregistration handled by the agent or founder with all registered entities.

There is no temporary suspension option for companies in Saudi Arabia at this time.

Terms and Conditions of Eastern & Co.

1.Legal Proposal Fees: The total fees for our office for the legal services detailed in the financial proposal range from 30,000 to 50,000 SAR, based on the license and company activities.

The quoted fees do not include any government or non-government expenses that may be incurred by our office to complete the agreed-upon legal services and subjects. Government expenses for the aforementioned subject range between 20,000 SAR (twenty thousand Saudi Riyals) to 25,000 SAR (twenty-five thousand Saudi Riyals).

Establishment Fees and Expenses:

Saudi Commercial Register: 1,200 SAR

Publication fees for contract notarization: 575 SAR

First-year license fee after establishment: 12,000 SAR

Qiwa Platform Registration: 2,645 SAR

Muqeem Portal Registration: 2,300 SAR

e-Visa Portal fees: 535 SAR

Work Permit issuance: 2,400 SAR

Company stamp: 150 SAR

Residency printing: 15 SAR

Chamber of Commerce fees: 500 SAR

Entry and exit permits: 200 SAR

Estimated total government fees for establishment: approximately 20-25 thousand SAR (subject to continuous change by government agencies and their requirements).