Setting up a Business in Saudi Arabia

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
The Sole Proprietorship is a single-partner company.
 
 
No minimum capital.
1 person
 
 
The individual entrepreneur is liable for debts the company on his personal possessions.
SAR 200
Sharikat Al-Mossahamah (S.A.M) is a Public Limited Company.
 
 
Minimum SR 2 million. If the capital is open to the public, Minimum SR 10 million.
Minimum 5 partners.
 
 
Liability is limited to the amount contributed.
SAR 1.600
SHARIKAT ZAT MASSOULIYYAH MAHDOOAH (S.M.M) is a Private Limited Company.
 
 
Minimum SR 500,000, but in practice, rarely less than SR 1 million.
Minimum 2 partners. Maximum 50 partners.
 
 
Liability is limited to the amount contributed.
SAR 1.200
Sharikat Tadhamou is a General Partnership Company
 
 
No minimum capital.
Minimum 2 partners.
 
 
Liability is unlimited.
SAR 800
Sharikat Tawsiyah Bel-ashom - Ashom is a partnership limited by shares.
 
 
Minimum SR 100,000. At least 50% issued at the registration.
Minimum 2 partners.
 
 
At least one partner must have an unlimited liability. Liability of other partners is limited to the amount contributed.
SR 1.600
 
Search a Company or a Financial Report
Arabian Travel Directory
 

Business Setup Procedures

Administrative Formalities
The Ministry of Commerce and Industry has to issue a license to any new business. In case of banking companies the Ministry of Finance.

 

 

For more details, refer to: 'Applications and Procedures', Saudi Ministry of Commerce and Industry

The Competent Organization
Ministry of Commerce and Industry

 

Ministry of Finance

Department of Zakat and Income Tax

Time Necessary for Registration

Ministry of Commerce and Industry takes 7-21 days.

Department of Zakat and Income Tax takes 3-7 days.
 

Recovery Procedures

Principle
Saudi Arabia has written a commercial law that is generally applied consistently. Law allows debtors to conclude financial settlements with their creditors through committees under the Saudi Chambers of Commerce and Industry or through the Board of Grievances.
Bankruptcy Laws
The country has written a bankruptcy law that was enacted by Royal Decree no. N/16 dated 4/9/1416H (corresponding to 1/24/96). It is called Regulation on Bankruptcy Protective Settlement.

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