30 Oct Learn about the types of companies in the Saudi system
The types of companies in the Saudi system are many and varied, and each has procedures and steps to start establishing companies with.
A company is defined as a project that brings together two or more persons. They share profit and loss.
There are also several forms of investment companies in Saudi Arabia, and we will get to know them through this article.
Types of companies in the Saudi system
The Saudi Investment and Industry Authority determined, There are several forms that companies must follow in order to carry out their economic activities.
Among the types of companies in Saudi Arabia are the following:
- Solidarity Company
by company name, It expresses solidarity between partners.
They are all involved in the capital, profit and loss.
The company takes its name from one of the partners with the word & co.
Or dispense with it and choose any other name that expresses the company’s activity.
The company is dissolved in the event of the death of one of the partners or the declaration of bankruptcy of one of them.
However, if there is a clause in the contract stipulating that the partnership will not be dissolved when one of the above two circumstances occurs, The company continues its work and is not affected by the incident or circumstance.
Profits are distributed according to the percentage of each partner in the company.
- joint stock company
It is the second type of company in Saudi Arabia.
Where the company’s capital is divided into shares that can be traded in the market.
joint stock companies, She is primarily responsible for her debts and all her obligations.
When starting a joint stock company, There must be sufficient capital of not less than five hundred thousand Saudi riyals.
- A limited liability company
It is a company that includes a number of partners not exceeding fifty.
The company is responsible for all liabilities and debts, No company or owner of the company is responsible for any of the above.
The company cannot issue shares or bonds for subscription.
Nor can it obtain any kind of loan to supply its capital.
- joint venture
It is among the types of companies in Saudi Arabia , these companies are not registered in the commercial register. It is not considered a legal person.
- Simple Recommendation Company
It is a company created between two teams.
One of them is fully responsible for the capital, profit and loss.
and the other has no responsibility, Except for the salvation of his share in the company. He is not called a merchant.
- Types of companies in Saudi Arabia A cooperative company
Those companies are based on providing assistance to partners in all aspects.
- Companies with variable capital
These companies stipulate in the Memorandum of Association that the capital is subject to increase or decrease.
In other words , the capital can be increased through the joining of new partners or the capital increase by the existing partners.
The capital can be reduced by the exit of one of the shareholders and the withdrawal of all his shares from the capital.
- foreign companies
They are companies subject to all laws and procedures. Which are determined by the Kingdom of Saudi Arabia regarding the establishment of non-local companies.
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