Establishing and residing companies in the Kingdom of Saudi Arabia is one of the most crucial steps for those wishing to enter the world of entrepreneurship and investment.
With Types of companies in the new system of companies in Saudi Arabia, it has become very important to understand the types of companies available and to know the necessary procedures for establishing them.
This article will provide you with a comprehensive overview of the types of companies in the new corporate law and the legal requirements related to them in Saudi Arabia.
We note that our office, CFOONLINE, the accredited financial office in the Kingdom, provides you with the best accounting services and the lowest prices,
in addition to free consultations with the best specialized financial accountants in the Kingdom.
Types of companies in the new system of companies in Saudi Arabia and their importance
The Kingdom of Saudi Arabia seeks to stimulate investment and local and international business development by establishing a comprehensive and updated corporate system.
Different types of companies are an essential part of this system, as each type represents a unique opportunity for investors and entrepreneurs.
By choosing the right type of company, shareholders can get the right legal protection and have the right opportunity to succeed.
We will review the types of companies in the new system of companies in Saudi Arabia and whether they require a Memorandum of Association or Articles of Association, in the following table:
|
Types of companies |
Establishment contract |
basis system |
|
Solidarity Company |
(yes you need a contract) |
(don’t need system) |
|
Simple Recommendation Company |
(yes you need a contract) |
(don’t need system) |
|
Shareholding company |
(no contract required) |
(yes you need system) |
|
Simplified joint stock company |
(no contract required) |
(yes you need system) |
|
Limited liability company |
(yes you need a contract) |
(don’t need system) |
|
Limited liability company owned by one person |
(no contract required) |
(yes you need system) |
The types of companies in the new company system have been mentioned in detail and in a beautiful and simplified manner.
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Company incorporation requirements
-
The founding contract and its importance
The Articles of Association is the basic legal document that the founders must prepare to establish the company.
It defines the legal identity of the company and defines its objectives and the conditions for its incorporation.
The Articles of Association contains the following information:
- Details of the company’s founders and the most important personal information about them.
- The type of company and details of its advantages and conditions.
- The main objective of the company and the business activities it intends to carry out.
- Financial rights and duties of shareholders.
Preparing the Memorandum of Association accurately and professionally is extremely important, as it represents the legal basis for establishing the company and obtaining the legal license.
-
Articles of association and its role in organizing the company
The Articles of Association is a set of rules and regulations that define how the company is organized and managed, the powers of shareholders, the methods of making decisions and resolving problems.
The Articles of Association includes the following details:
- Organizing the organizational structure of the company and the various departments and the powers of each department.
- Specific mechanisms for making administrative and financial decisions.
- Procedures related to holding periodic meetings of the General Assembly and submitting financial reports.
- Dealing with conflicts of interest and internal problems.
Articles of Association contribute significantly to the organization of work within the company and protect the rights of shareholders and ensure the achievement of financial stability of the company.
The role of our CFOONLINE approved financial office in customer service
-
Providing customized financial advice
At our accredited financial office CFOONLINE we pride ourselves on providing customized financial advisory services to our clients.
We fully understand that each client has a different vision and financial goals, therefore we provide a unique solution for each client based on their needs and expectations.
We seek to provide the right guidance and assistance in making accurate financial decisions that lead to the success of their projects.
-
Facilitate company incorporation procedures
We understand that the company incorporation process can be complex and stressful for clients.
For this reason, we offer our services to facilitate every step of the company incorporation process.
From providing initial consultations about the appropriate type of company to preparing legal contracts and necessary documents, we assist clients at every stage to ensure the ease and success of the incorporation process.
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Conclusion:
In conclusion of this article, we renew our determination that we in our CFOONLINE accredited financial office are committed to providing the best financial services and advice to our clients.
We strive to provide the necessary support and guidance to everyone who aspires to establish a successful company in the Kingdom of Saudi Arabia.
Contact us today and let us be your success partner on your journey to the world of entrepreneurship and financial success.
Thank you for trusting us and we look forward to serving you with all professionalism and attention.
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