Business Administration in Saudi Arabia
Setting Up a Company
Legal Business Entities
|Types of Companies and Capital (Max/Min)||Number of Partners/Shareholders and Liability||Registration Fees|
| The Sole Proprietorship is a single-partner company.
|| 1 person
| Sharikat Al-Mossahamah (S.A.M) is a Public Limited Company.
|| Minimum 5 partners.
| SHARIKAT ZAT MASSOULIYYAH MAHDOOAH (S.M.M) is a Private Limited Company.
|| Minimum 2 partners. Maximum 50 partners.
| Sharikat Tadhamou is a General Partnership Company
|| Minimum 2 partners.
| Sharikat Tawsiyah Bel-ashom - Ashom is a partnership limited by shares.
|| Minimum 2 partners.
- Business Setup Procedures
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
- Search a Company or a Financial Report
Arabian Travel Directory
- Legal Weekly Duration
- 8 hours a day or 48 hours a week. The number of working hours may be raised to 9 hours a day where the workman does not work continuously, such as seasonal establishments, hotel, snack bars, restaurants, etc.
- Retirement Age
- 60 years for men and 55 years for women.
- Working Contracts
- Broadly there are two types of contracts: Permanent and Fixed-term.
Majority of the contacts for foreigners in the labor sector are of fixed-term, while as for the locals these are of permanent type.
The number of 'temporary contracts' is very low.
Cost of Labor
- Minimum Wage
- No minimum wage.
- Average Wage
- Average monthly gross earnings is SAR 2,461 (USD 656).
- Social contributions
- Social Security Contributions Paid By Employers: 11%
Social Security Contributions Paid By Employees: 9%
- Social Dialogue and Involvement of Social Partners
- The labor law does not provide for collective bargaining. However, the companies that employ more than 100 Saudis are allowed to form "labor committees." There are 15 labor committees registered in the Kingdom.
- Labor Regulation Bodies
Ministry of labor
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Inspired Multi Dimensional Services Ltd on 7 Jun 2014 related to Business Administration in Saudi Arabia