A Financial Summary for the Last 3 Years is a document summarizing your company's financial performance over the past three years. This typically includes:
Balance Sheet: A snapshot of your company's financial position at a specific point in time, outlining assets, liabilities, and shareholder equity.
Income Statement: A summary of your company's income and expenses over a specific period, highlighting revenue, cost of goods sold, operating expenses, and net income.
Key Financial Ratios: Calculation of key financial ratios that provide insights into your company's profitability, solvency, and liquidity, such as return on equity, debt-to-equity ratio, and current ratio.
Why is it required for Business Entry into Saudi Arabia?
The financial summary demonstrates your company's financial health and stability. It assures Saudi authorities that you have the resources to successfully establish and operate a business in the Kingdom.
Components of the Financial Summary Document:
Company Name and Location: Clearly identify your company's legal name and registered address.
Financial Statements: Include a condensed version of your audited balance sheet and income statement for the past three years.
Key Financial Ratios: Calculate and present relevant financial ratios to illustrate your company's financial health.
Steps to Acquire/Provide the Document:
Obtain Audited Statements: Ensure your financial statements for the past three years are audited by a reputable accounting firm.
Prepare a Summary: Develop a concise document summarizing your key financial information for the past three years.
Translation and Legalization: Have the financial summary translated into Arabic by a certified translator and legalized by the Saudi embassy or consulate in your home country.