Types of Companies in Saudi Arabia
Learn about all legal forms of commercial entities available under the Saudi Companies Law and choose the most suitable one for your business.
The most common in the Saudi market. One or more partners (up to 50), capital divided into shares, and each partner's liability is limited to the value of their share. Suitable for small and medium-sized businesses.
For large projects. Capital is divided into equal-value, tradeable shares. Divided into closed joint stock and publicly listed companies. Suitable for large businesses or those seeking an IPO.
A limited liability company with only one owner. Provides better legal protection than a sole proprietorship since liability is limited to the capital, separating the company's assets from the owner's personal assets.
A partnership between two or more persons with joint and unlimited liability. Any debts fall on all partners, even from their personal assets. Suitable for family or professional partnerships with high mutual trust.
A partnership between two types of partners: general partners who manage the company with full liability, and limited partners who only contribute capital with liability limited to their shares.
For international companies wishing to expand into the Saudi market by opening a branch of the parent company, instead of establishing an independent entity. Requires an investment license from the Ministry of Investment.
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