The Saudi economic system is one of the most important and largest economic systems in the GCC countries. The Saudi market provides investors with unparalleled economic opportunities, making it one of the most important commercial centers in the region.
Thank you for reading this post, don't forget to subscribe!If you want to get out of the employee’s lifestyle and start establishing your own company in the Kingdom of Saudi Arabia, We can help you establish a legal company with a legal entity that complies with the laws and regulations in the Kingdom of Saudi Arabia.
We at Itqan strive to provide all your requirements for establishing your companies in the Kingdom of Saudi Arabia
Conditions for obtaining a license:
The license depends on the type of investment activity you intend to initiate. However, there are some general conditions that apply to all types of commercial activities. The most important of them:
- Experience of not less than three years in the same required activity
- Intellectual rights documented by internationally recognized bodies for persons who own patents and scientific content.
Types of companies and their characteristics according to Saudi law:
One person company
It became possible to establish a one-person company in the Kingdom of Saudi Arabia, the United Arab Emirates and all over the Gulf countries. Where the Gulf citizen can establish a commercial company W.L.L. Where the Gulf citizen is allowed to provide services or commercial businesses with limited liability, it has an incorporation contract and a commercial license. The owner determines the amount of capital to establish a company in accordance with the applicable laws.
Limited liability companies
To establish this company, several conditions must be met, foremost of which is that the minimum number of partners be two.
Each of these partners bears responsibility for the debts of the company to the extent of their shares of the capital, and any of the partners has the right to waive his share. However, it is not possible to establish a limited liability company through public subscription, and there is no minimum capital. Where it is possible to start establishing a company with any capital. In addition, one or two directors or a board of directors must be appointed.
Solidarity companies
These companies consist of two or more companies that are jointly responsible for all the financial obligations of the company
These companies are characterized by the fact that the partner bears personal and absolute responsibility for the company’s debts, whatever his share in the company’s capital.
If it is difficult to mention the names of all the partners, it is possible to mention the name of only one of them with the addition of the phrase and partners.
Simple Recommendation Company
A commercial company established between two or more partners. Provided that at least one of them is a joint partner, and he is the one who is responsible in an unlimited way about the company’s financial obligations.
The joint stock company
It is a money company, where its capital is divided into shares of equal value and negotiable in the manner determined by the regulations in the Kingdom. What distinguishes this type of company is that the partner is responsible to the extent of the shares he holds. Also, the name of the company must not be detached from the names of the owners of the companies, nor from the purpose for which it was established.
Basic steps to register the company in the Kingdom of Saudi Arabia
The company registration process in the Kingdom of Saudi Arabia consists of several stages, she:
- Preparation of documents including legalization by the Saudi Consulate
- Submitting an application to the General Investment Authority in the Kingdom of Saudi Arabia, and obtaining an investment license. This takes 3 to 4 weeks.
- Obtaining approval from the Companies Department at the Ministry of Commerce and Industry after submitting the Articles of Association and the name of the company. This takes 5 days.
Establishing companies – the foreign investment system in Saudi Arabia
Speaking of foreign investment , it has undergone remarkable changes. Where foreign investors no longer need a local partner and can own real estate for their operations, In addition to the possibility of transferring money from their companies outside the country.
If you want to start your investment journey in the Kingdom of Saudi Arabia, you need an expert to assist you in clearing all legal transactions and taking all steps legally. You can rely on Itqan , as we are working hard to provide all facilities with the help of our consultants and experts inside the Kingdom of Saudi Arabia.
Contact us now to start planning your project together.
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