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How to Start a Manpower Agency in Saudi Arabia? [2023 – Complete Guide]

The Kingdom of Saudi Arabia (KSA) continues to emerge as one of the most important centers of global business. As KSA attracts more local and foreign investors, the demand for skilled labor is also rapidly increasing, making a manpower agency one of the ideal businesses in the region.

If you are interested in starting a manpower agency in KSA, this guide might be helpful for you to better understand the overview of the market, as well as the things that you must remember before starting one.

In this article, we will talk about the following:

  • Why start a manpower agency in Saudi Arabia?
  • Steps in starting a manpower agency in Saudi Arabia
  • Best license to get for a manpower agency
  • How Creative Zone can help

Why start a manpower agency in Saudi Arabia?

With a population of over 35 million, the demand for skilled workers in Saudi Arabia is constantly increasing. As the country’s economy continues to grow, the government and private corporations’ need for human resources is a constant demand in the market.

In addition, the government of KSA continues to place policies such as minimal liabilities for personal and corporate income tax to encourage more foreign direct investments and business expansions in the country, making the demand for a skilled workforce a necessity for local and foreign companies in Saudi Arabia.

Steps in starting a manpower agency in Saudi Arabia

Starting a manpower agency in Saudi Arabia requires simple procedures. Here are the general steps that you can follow upon establishing one:

Step 1: Determine your niche

Before starting a business, research the market and understand the factors that affect your future success. It is important to include in your research the areas that are already oversaturated. This will help you choose what sectors to focus what market to in providing your services.

Step 2: Choose a business structure

There are several business structures available in Saudi Arabia, including sole proprietorship, partnership, or limited liability company.

Our team from Creative Zone can help you determine the best business structure that best suits your needs.

Step 3: Register your business

Before conducting your business activities in Saudi Arabia, you must register your business with the appropriate government agencies and obtain any necessary licenses or permits.

Again, our company formation specialists from Creative Zone can assist you all throughout the registration process – from getting the right trade license to accomplishing all the other requirements needed for your business.

Step 4: Develop a business plan

A successful business comes from a well-thought plan. Strategise your marketing plan to ensure that customers will discover your business. Create an outline of your target services offered and financial projections to help you monitor your progress.

Step 5: Hire staff

Hiring the right people is one of the most critical factors for a long-term business. Recruit experienced professionals to work for your agency.

Step 6: Build relationships and invest in customer retention 

Once you open your business, build relationships, and maintain connections with potential clients to secure contracts and establish a steady stream of business.

After this, you can invest in different customer retention programs that will help you maintain a progressive business.

Best license to get for a manpower agency

There are two types of licenses available for a manpower agency in Saudi Arabia:

  1. License for local recruitment – This license allows the agency to recruit and place Saudi Arabian citizens in local companies
  2. License for international recruitment – This license allows the agency to recruit and place both Saudi Arabian citizens and foreign workers in local and international companies.

Before applying for a license, you will need to have accomplish and submit various requirements including office lease contract, detailed business plan, financial projections, and proof of sufficient financial resources to operate the agency.

It is advisable to seek legal guidance from trusted business consulting firms, like Creative Zone, to ensure a fast and efficient company formation.

How Creative Zone can help

Although setting up business in Saudi Arabia is straightforward and relatively easy, it’s still the best decision to get assistance from our business experts in Creative Zone.

Creative Zone is the UAE’s most trusted business firms, having helped over 45,000 startups, SMEs, and entrepreneurs launch and expand their businesses in different parts of the MENA region including Dubai, Qatar, and Saudi Arabia.

Our company formation specialists will guide you with everything you need from pre- to post- launching to ensure a seamless and cost-efficient business incorporation.

We also offer flexible payment and business packages tailored for your company needs. Get a professional advice and take advantage of our free consultation to start your business journey.

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