Start a Limited Liability Company in Saudi Arabia
Foreign investors who are interested in setting up a
company in Saudi Arabia can open a limited liability company,
the most common business form chosen for incorporation.
The limited liability company (LLC) can be set up with only one
shareholder and one director. One of the main advantages of the LLC in
Saudi Arabia is that the company’s shareholders are liable for
the debts incurred by the respective business only in the amount they have
participated in the company’s capital. Investors may receive legal advice
on the registration of an LLC from our team of agents in company
formation in Saudi Arabia.
Capital requirements for an LLC in Saudi Arabia
Business forms in Saudi Arabia have different capital requirements,
imposed under the local legislation. The procedure of Saudi Arabia company
formation for an LLC prescribes different categories for
the minimum share capital, but as a general rule, there are no requirements
in this sense. The capital requirements in Saudi Arabia depend in the
case of LLC based on the activities performed by the company.
The Saudi Arabian General Investment Authority (SAGIA) can impose
a minimum share capital of SAR 1 million for LLCs registered
as industrial licensed LLC.
Also, a limited liability company is required to keep 10% of the company’s net profits obtained in a financial year as statutory reserves. Our team of specialists in company registration in Saudi Arabia can provide further information on this topic.
Also, a limited liability company is required to keep 10% of the company’s net profits obtained in a financial year as statutory reserves. Our team of specialists in company registration in Saudi Arabia can provide further information on this topic.
Register an LLC in Saudi Arabia
One of the first procedures for setting up a company in Saudi Arabia is to obtain a
company name, a step that must be completed with the Ministry of Commerce
and Industry.
The legal entity is incorporated by drawing the company’s articles of association, which have to be deposited with the Ministry of Commerce and Industry, more specifically with the Unified Center/Companies Department working under the above mentioned institution, for authentication. The procedure can be completed online and after the Ministry stamped the company’s articles of association, the document must be notarized at a public notary.
It is also necessary to open a corporate bank account, which can be used only after the legal entity received the certificate of registration. The bank account is necessary for depositing the company’s capital.
Other incorporation requirements refer to the registration with the Ministry of Labor or with the tax authorities in Saudi Arabia. Foreign investors are invited to contact our team of consultants in company registration in Saudi Arabia for further assistance on the incorporation of a LLC.
The legal entity is incorporated by drawing the company’s articles of association, which have to be deposited with the Ministry of Commerce and Industry, more specifically with the Unified Center/Companies Department working under the above mentioned institution, for authentication. The procedure can be completed online and after the Ministry stamped the company’s articles of association, the document must be notarized at a public notary.
It is also necessary to open a corporate bank account, which can be used only after the legal entity received the certificate of registration. The bank account is necessary for depositing the company’s capital.
Other incorporation requirements refer to the registration with the Ministry of Labor or with the tax authorities in Saudi Arabia. Foreign investors are invited to contact our team of consultants in company registration in Saudi Arabia for further assistance on the incorporation of a LLC.
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