Steps for establishing a company in Saudi Arabia
- Choosing a company name.
- Preparing the company incorporation contract, which includes information about its activity, its purpose and its capital.
- Sending the contract to a notary.
- Submitting an application form to the Ministry.
- Filling out the incorporation form.
- Obtaining a document from the bank to prove that you have deposited the capital.
- Obtaining the company’s commercial registration.
- Registering at the Chamber of Commerce.
- Preparing personal documents, which include a copy of the personal identity card and a certificate of good conduct for foreign investors.
Types of Companies in Saudi Arabia
Consist of two or more partners, and all partners are responsible for the company’s obligations and debts. The company must be registered with the commercial registry upon incorporation. There is no minimum capital required.
Limited Partnership Firms
It has two types of partners:
- Joint Partners: who manage this company are responsible for its debts.
- Limited Partners: they are not responsible for company’s management duties, but participate with their capital, and are obligated to pay a percentage of the debts of the company, depending on their share.
Public Joint Stock Company
Its capital is divided into shares of equal value, and each shareholder is responsible according to the amount of his contribution to its capital. The capital must not be less than 2 million SAR. The company’s memorandum of association and the duration of the company must be included in the contract. The number of founders is not less than five.
Consists of one person – the founder himself. The founder determines the capital that will be invested and the company’s activity in accordance with the country laws.
Limited Liability Companies
Consist of at least two people. Partners cannot assign their shares to others. At least one director must be appointed. Each person in this type of companies is liable according to the value of his share in the capital of the company. There is no minimum capital required.