For entrepreneurs who own a foreign business and want to distribute their products within Saudi Arabia via a local agent, they’ll need a scientific and technical office. It’ll serve the functions of conducting product and market research, agent, distributor, and consumer assistance, and act as its parent company’s local reporting hub.
However, scientific and technical offices cannot engage in commercial activities themselves. They are limited to liaising and assistance.
Foreign companies who wish to operate in Saudi Arabia by way of local agents should consider this license. With one, they can open an office to provide scientific and technical services to agents, distributors and consumers while also getting familiar with the territory through research.
Applicants will need to prepare the following:1
A copy of the commercial register of the participating entity, authenticated by the Saudi Embassy.2
A copy of the agency authorising the agent or distributor.
The scientific and technical office must conduct market feasibility studies on the company’s activity. They’ll then have to prepare reports for the main centre. Each year, the office should submit an annual summary of its activities to the Ministry of Investment.2
Scientific and technical offices are prohibited from performing any contracts, commercial activities, or investments in the Kingdom, whether directly or indirectly. They also cannot charge fees for training Saudi technicians.
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