Question

1. Discuss in details Legal procedure to registers a HOSPITAL business IN SAUDI ARABIA

2. Discuss challenges to register and open a HOSPITAL business IN SAUDI ARABIA

Answer 1

(a)Legal procedure to registers a HOSPITAL business IN SAUDI ARABIA

• New initiative has been launched to make it possible for businesses to be registered within a day. The 12 reform initiatives are aimed at modernizing the process of the Kingdom's administrative procedures enabling both investor and business owners to start a business within one day.
• The Ministry of Commerce and Investment has announced these reform initiatives are within the framework of the on-going modernization and improvements of the trade services, through process re-engineering and integrated electronic systems
• The new changes have been implemented to ease processes to help facilitate registration of businesses via an online system
• The system allows investors and business owners to issue and obtain all necessary documents to start their businesses completely online, and without the need of physical visits to any government agency.
• The new online service allows investors to search and book his or her trade name, fill-in company Articles of Association details, add partners and shares without the need of attestation by a Notary Public using electronic authentication. Additionally, the online service allows business owners to pay government fees online, and obtain Commercial Registration (CR) along with the company's Article of Association in printable format.
• Using the newly launched integrated online platform investors can avail all the services simultaneously. The requirement of a company seal has also been removed. Therefore, the reforms undertaken by the Ministry of Commerce and Investment will help in reducing the procedures for starting a business in Saudi Arabia and provide Ease of Doing Business.
• As soon as the CR is provided, investors will be issued a temporary company license code allowing immediate registration with the Ministry of Labor, Social Insurance "GOSI", Zakat and Income Tax "GAZIT", and enroll in the Chamber of Commerce. The online system also allows issuance of the Municipality License along with Commercial Registration, and to identifying your business location along with a free subscription to the government mailing service "Wasel" for the first year.

(b)Challenges to register and open a HOSPITAL business IN SAUDI ARABIA

• Lack of Cultural Awareness

Before attempting to expand your business to Saudi Arabia or hiring staff in Saudi Arabia, it is important that you have a strong understanding of the local culture.

Saudi Arabia has a rich Muslim heritage and its religion plays a central part in its culture. Islamic law is the governing law of the nation. Additionally, the vast majority of the population follow Wahhabi.

This religion shapes the values of the people, how they form relationships and how they interact with family, business and the community. It is important to have a good understanding of this religion and its tenets so that you do not make a social faux pas based on inaccurate stereotypes.

• Preference for Local Businesses and Employees

Saudi Arabia protects its own people and enterprises over foreigners. There are certain programs that encourage the purchase of goods and services from local suppliers.

• Tough Immigration Standards

Localization standards also affect immigration. The government has established strict quotas for hiring nationals in Saudi Arabia.

However, foreign companies may find it challenging to find an adequate number of qualified nationals who can fulfill their needs. Some companies report that it is difficult for them to obtain visas for expatriate professionals.

• Different Work Week

While many companies are accustomed to a Monday to Friday work week, this is not the norm in Saudi Arabia.

The work week in Saudi Arabia begins on Saturday and usually ends on Wednesday. Thursday and Friday are the traditional days of rest.

Explanation:

With its vast land and appeal to travelers, Saudi Arabia presents many opportunities for foreign businesses. The world's largest exporter of petroleum, Saudi Arabia has used its wealth to establish several bustling cities. Despite its promise, doing business in Saudi Arabia has its unique challenges. Understanding these challenges and addressing them head-on can help you increase the odds of establishing a successful business in Saudi Arabia.