Aspire to establish your own company in Saudi Arabia and do not know where to start and what are the procedures that take place here I will explain to you everything related to establishing a company in Saudi Arabia in detail and with the simplest steps also you Should Know Types of companies in Saudi Arabia.
Before starting to search for the necessary procedures to establish your own company, you must understand what the word company means and what it includes. It is an entity that is established legally by the provisions of the system based on an incorporation contract and a by-law that states that two or more persons have contributed to a project and the percentage of each individual and his share of the profit or loss. By agreement or election, one individual is established to manage this company.
Establishing a company in Saudi Arabia is very important due to several factors. If you are a local or foreign investor and want to establish your own company, you must be aware of the importance of this step, which is limited to achieving profits and increasing income only, but goes far beyond that. Here are some reasons that highlight the importance of establishing a company in Saudi Arabia
As Saudi Arabia is one of the strongest economic environments in the region due to its financial and political stability, and it is one of the most important members of the G20, which enhances investment in it and is a strong attraction factor for global companies.
Saudi Arabia enjoys a huge local market because its population is about more than 35 million people, which provides a large market for all products and services. The Saudi population also enjoys a high income, which enhances purchasing power
Saudi Arabia also enjoys its central strategic location that connects Asia, Africa, and Europe, which makes it distinguished and leading due to its easy access to various global markets.
The Saudi government is always working to support companies and provide them with all facilities, including tax exemptions, facilitating and simplifying the procedures required to establish the company, and providing permanent support to all investors.
With the continuous Saudi development, renewed investment opportunities appear daily in many sectors such as technology, renewable energy, tourism, entertainment, and various industries.
Saudi Arabia has established regulations and laws that are all in line with international standards to protect investors and provide everything they need from a strong competitive work environment.
The companies that you can establish in Saudi Arabia vary according to the Saudi system and the purpose of establishing this company. Below we learn about the most important main types of companies in Saudi Arabia.
A company that may be established by one or more persons with large capital divided into tradable shares and the shareholder's liability is limited only to the value of the shares subscribed to
This company alone is responsible for all obligations arising from its activity, even the debts it owes.
1- Closed joint-stock company.
2- Public joint stock company.
A company that may be owned by one person or through a partnership between two individuals. The number of partners may sometimes reach fifty partners. The liability of this company is limited depending on the amount of the contribution to the capital.
The company's debts are not divided according to the amount of the share of the person contributing to it. A contract is drawn up that includes the shares and the distribution of responsibilities and determines who is the director of the administration after holding elections.
A company that is established between two or more partners who bear full responsibility personally and jointly in bearing the responsibility of managing the company, preserving its funds, and paying debts.
No party may withdraw from this partnership except with the consent of all individuals. This partnership is not dissolved except by the death or bankruptcy of one of the individuals. This type of partnership is based on mutual trust between the partners.
It is established based on the partnership between two types of partners.
1_ General partners who bear the responsibility of managing the company's finances and acquiring the status of merchants.
2_ Limited partners whose liability is limited to the amount of their contribution to the capital.
So, the simple limited partnership combines two types of companies into one company, as it is a combination of general partnerships and limited partnerships.
It is one of the types of mixed companies, and it is a combination of general partnerships and joint stock companies, and its options are broader and more organized than simple joint stock companies. Its structure consists of shareholder partners whose contribution to paying debts is limited according to the amount of shares they contribute, and general partners who are responsible for all the company's remaining debts.
It is a company that works to establish companies or own shares or stocks in existing companies until they become affiliated with it. It may be a joint stock company, a simplified joint stock company, or a limited liability company. It also works to organize affiliated companies and manage their business in a centralized manner.
It is a company established by persons licensed by the system to practice one or more free professions, such as "lawyers, engineers, or accountants", and its purpose is to practice these professions and provide specialized professional services. It may take several forms, such as
1- General partnership.
2- Simple limited partnership.
3- Joint stock company.
4- Simplified joint stock company.
5- Limited liability company.
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October 10, 2024
- بواسطة ibrahim elsiofy
