Incorporation of companies

Have you contracted with a lawyer for company formation before? Starting your own business can be very exciting, but it also comes with challenges, including legal issues. Therefore, preparation is crucial. Continue reading to learn about the procedures for establishing a company in Saudi Arabia and how to get this service in the best possible way.

Company Formation System

A company is a contract between two or more persons to participate in a project either with capital, labor, or both, sharing in the profits and losses based on their agreement and the type of company. In Saudi law, companies are generally divided into three types: personal companies, capital companies, and mixed companies.

Building a strong brand requires many tasks, with the primary one being the correct completion of company formation procedures and its official registration in Saudi Arabia. This allows you to start, maintain, and grow your business in the Saudi market.

Before forming a company, you need to choose from the following types:

Limited Liability Company: Requires at least two partners, with a maximum of 50, and no minimum capital requirement. A manager (or more) must be appointed.
General Partnership: Requires at least two partners with no minimum capital requirement.
Limited Partnership: Consists of two types of partners: one general partner and one limited partner.
Joint Venture: Formed by two or more persons with one person responsible for the external dealings. It is usually set up for joint tasks.
Joint Stock Company: Requires a minimum of five shareholders and a minimum capital of 2 million SAR. A board of directors must manage the company. There are two types: public joint stock company and private joint stock company.
Professional Companies: Established by one or more licensed individuals who practice the same or related free professions.
Cooperative Companies: Formed by a large number of partners aiming to achieve private interests.
Foreign Companies: Can only start operations after receiving approval from the Saudi General Investment Authority.

Each of the above types of companies has specific requirements, and for sufficient knowledge, you can contact Sahl Law Office, which specializes in working with the best company formation lawyers in Saudi Arabia.

Benefits of Investing and Establishing Companies in Saudi Arabia

The Kingdom of Saudi Arabia is keen on growing its economy and ensuring it reaches a high position among global nations. This makes Saudi Arabia an attractive investment destination. Today, many investors choose Saudi Arabia as their investment hub due to the various opportunities, facilities, and services that help them compete in the local and international markets. The Kingdom offers a wide range of company types for formation.

Most Important Documents Required for Company Formation in Saudi Arabia

Establishing a company in Saudi Arabia requires preparing the following documents:

Copies of the personal identification or passport of the company owner.
A certified copy of the commercial registration of the company to be established.
A bank account registered under the company's name.
A document outlining the company’s address and its architectural plan.
Ownership or lease agreement of the company’s premises.
The company’s founding contract, signed by all partners, which includes details about the company, its manager, responsibilities, and each partner’s share.
Insurance contracts for the company’s assets and employee insurance.

At Sahl Law Office, we understand the importance of time and offer professional assistance in obtaining all necessary documents and licenses before submitting the formation application to the Saudi Ministry of Commerce, followed by monitoring the entire process until all approvals are granted, and your company is ready to operate.

What Should Be Done Before Starting the Company Formation Procedures?

The following preliminary steps should be completed before starting the company formation process:

Choose the field in which your company will operate and obtain the relevant licenses.
Choose the company type that suits your field, budget, and number of partners.
Define the company’s address and communication channels.
Choose a unique and memorable company name related to your business area.
Prepare all necessary documents and pay the required formation fees.

Then, the company owner (or one of the partners, or a person with power of attorney from the owner) must submit an official application to the Ministry of Commerce and submit the required documents.

Our Legal Services in Company Formation in Saudi Arabia

The Saudi government encourages both local and foreign investment, in line with its Vision 2030. The government has put in place many rules and conditions regarding the company formation procedures for both residents and expatriates, which aim to protect their assets, promote investment sustainability, and ensure transparency in dealings.

If you wish to work with specialists who have extensive professional experience in this field, you can contact Sahl Law Office, which includes a team of top lawyers and legal advisors providing necessary legal support.

Our team will save you time, effort, and money, and reduce the risks that might arise from not following the correct company formation procedures in Saudi Arabia. You can get the following legal services from us:

Providing appropriate legal consultations on the company formation system, regardless of the type of company you wish to establish.
Drafting and preparing company formation contracts and all required registration documents.
Issuing all commercial and industrial licenses.
Updating foundation contracts.
Extracting all types of commercial registrations.
Converting companies into institutions and vice versa.
Providing services for foreign companies.
Managing all legal affairs related to the company to ensure its success and growth.
Handling all legal cases related to companies and institutions of all types.
Representing you legally before the relevant authorities.
Protecting your company from all potential legal risks.

Why Choose Us for Company Formation Services?

Choosing the best lawyer for company formation in Saudi Arabia is essential for the success of your business. It guarantees the provision of high-quality legal services that allow you to create an ideal work environment for your company, ensuring long-term success, protection of your rights, and achieving your investment goals.

We take pride in establishing many companies and entities in Saudi Arabia for both citizens and expatriates. We always strive to use our knowledge and professional skills to meet the requirements of our clients, fostering their growth and prosperity.