Beauty salons have been witnessed as the fastest growing business in Saudi Arabia for more than a decade. Unlike UAE, KSA has become the beauty business destination where salon and spa businesses come under the prioritized business segments among foreign investors.
Today, salons in Saudi Arabia are one of the most lucrative businesses during the festivals like Eid, marriage seasons, and vacations. This is why beauty salons can be the key business to earn faster if you are new in Saudi Arabia.
If you are looking for lucrative business opportunities in KSA, you should consider salon business as one of them. Whereas if you have already decided to start a salon in the Kingdom of Saudi Arabia, then it’s fantastic!
I appreciate that you landed on this article. It will indeed become an essential read for you! You might find this article longer to some extent, but frankly, it will surely be your perfect time investment if you are very serious about it.
Procedure to Open a Salon in Saudi Arabia
1. The very first step to starting a salon business in KSA is to determine its name.
2. The next step is to determine which form of business you want to set up. You can opt for any one business from out of the below-given popular forms.
- Limited Liability Company
- Joint Liability Company
- Limited Partnership Company
- Joint Venture
- Joint Stock Company
- Branch Office
LLC (Limited Liability Company) is one of the most common and convenient business forms, especially for foreigners. Moreover, one can set up either a private or public LLC as per the requirement, but a private LLC is quick and simple to register compared to a public LLC.
3. Now it’s time to get ready with some documents and to get the parent company’s documents notarized and legalized
- Parent company’s MOA & AOA
- Business License
- Certificate of Incorporation
- Board Resolution
- Power of Attorney
4. Once all the documents are ready; the incorporation phase comes into play. It includes the following steps:
- Apply for an investment license
- Submit AOA of your company to the Ministry of Commerce and Investment
- Reserve your company’s name with the unified center
- Register with MERAS
- Get the SAGIA foreign business license
- Create your company seal
- Register with the chamber of commerce
5. Now, you are required to open a local bank account within 90 days of obtaining a commercial certificate of an LLC. Once you receive the company registration number, you will be allowed to open a corporate bank account.
Basic Legal Structure of LLC For a Salon
- Minimum 1 shareholder (either natural or artificial person)
- Minimum 1 director
- Requirement of the board of directors if the total no. of shareholders extends 20
- Requirement of the supervisory board in case of minimum 3 directors
- Limitation of maximum 50 members
Rules For Beauty Salon Business in Saudi Arabia
The Ministry of Municipal and Rural Affairs always promotes the beauty industries in KSA to encourage women to set up their businesses and provide employment opportunities to other women. However, there are certain executive rules that salon owners & their employees have to follow:
- The ministry is very punctual for the health and safety matters of service providers and consumers.
- The beauty services of the salon should match up to the values of Saudi society.
- The service providers can render their beauty services within the licensed store but are prohibited outside the same.
- Every employee at the salon must possess the health certificate duly authorized by the local municipality stating that they are free from infectious diseases.
- All beauty products must match the standards and adhere to the regulations issued by the Saudi Food & Drugs authority.
- Sanitizer is required to be kept at every salon and beauty center for the service providers and consumers.
- The customers should make a difference between beauty salons and clinics.
- Salons are not permitted to offer medical treatment, including plastic surgery, hair removal through laser treatment, etc.
Why Salon Business in Saudi Arabia?
Modernization, high standard of living, increasing income sources, and growing demand for wellness solutions in the busy-going life are the four pillars, continuously taking worldwide spa and salon businesses to another level.
Unlike western countries, Saudis are not behind in spending their substantial income towards beauty as well as wellness services & products. As per one report, the younger population of Saudi Arabia is becoming more self-conscious and tends towards consuming beauty and cosmetic products more than ever!
You must be surprised to know that social media platforms like Instagram, Facebook, YouTube, and Twitter play a vital role in bringing a beauty revolution in Saudi Arabia nowadays. As a result, the Kingdom’s females spend a lot on their hair and beauty care.
Many people want to open their profitable beauty salon or spa business in Saudi Arabia, considering all such facts.
Why Saudi Arabia for Your Salon Business?
There is no better time to start your own salon business in KSA than now. Want to know the reason?
The biggest reason is the Doing Business 2020 Report which declared Saudi Arabia as one of the top 10 countries improving the global business climate. The country performs the fastest reforms at the social as well as business levels that attract a more significant number of investors.
Moreover, KSA constantly endeavors to ease the business environment for investors and entrepreneurs as a part of its Vision 2030.
Today, various businesses, including restaurant business, real estate business, healthcare business, educational business, beauty salon business, and many more, are on rising in KSA, owing to the ease of doing business policy of the Saudi Government. Sounds interesting, right?
Establishing a salon business in KSA requires a lot of technical knowledge. This is where the Business Link team comes into the picture to bring your dream salon in Saudi Arabia to reality without any hassle.
We are a team of professional and experienced business setup consultants in Saudi Arabia. We are here to listen to your requirements regarding any kind of business setup in Saudi Arabia in the easiest and fastest way.
Drop us a line or call us directly; you are just one step away from us!
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