What is the form of the compan...

The form of each contract varies according to the type of companies that can be established in Saudi Arabia, according to what was stated in Low Chapter Four on Saudi investment, which stipulated that the most important types of companies that can be established are the following:

1_ General partnership.

2_ Simplified limited partnership.

3_ Joint venture company.

4_ Joint stock company.

5_ Limited partnership by shares.

6_ Limited liability company.

7_ Professional company.

8_ Holding and subsidiary company.

9_ Special companies established by royal decree.

However, all these companies are similar in the basic data included in the company incorporation contract, according to what was stated in Article Seven:

1_ Company name

2_ Type of this company

3_ The goal and purpose of this company

4_ Names of partners and shareholders.

5_ Nationalities and addresses of shareholders and companies.

6_ Method of distributing profits and losses among partners.

7_ All matters related to management.

8_ Determining the rights of managers.

9_ The main address of the company.

Data of the establishment contract of a joint-stock company

According to what is stated in Article Thirty-Six, the data it contains are as follows.

1- Names of partners and their information.

2- Name of the company.

3- Headquarters of the company.

4- Objective of the company.

5- Capital of the company and all information about each person's share and stake.

6- What is the duration of this company if this company is temporary?

7- Partners' decisions and everything necessary for their issuance.

8- Distribution of each person's share of profits and losses.

9- Start and end date of the fiscal year.

10- What procedures take place in the event of the company's expiration?

11- Other conditions or agreements that do not conflict with the terms or provisions may be added according to the partners' agreement.

Data of the Articles of Association of the Joint Stock Company

Three types of companies can be established in Saudi Arabia that are based primarily on the articles of association of the company and do not have an article of association for it. Among these companies is the joint-stock company, and its articles of association stipulate, according to what is stated in Article Sixty-One, that

1- Name of the company.

2- Headquarters of the company.

3- The purpose of this company.

4- The authorized, issued, and paid-up capital of the company.

5- The number of shares, their types and categories, and the rights of each type and category.

6- The duration of this partnership if it is temporary.

7- All matters of managing the company and who will assume the position of management.

8- The start and end date of the fiscal year.

9- Any other conditions may be added as long as the partners agree to them and they do not conflict with the stated conditions.

The most important frequently asked questions about the company incorporation contract

1- Is it possible to amend the company incorporation contract?

Yes, you can amend this contract, but the approval of all partners and shareholders must be obtained and these changes must be documented with the competent authorities such as the Ministry of Commerce.

2- Is it necessary to document the company incorporation contract?

Yes, it is very important to document the company incorporation contract with a notary public and for its registration with the Ministry of Commerce to be legal.

3- Is it possible to establish a company on my own?

Yes, there are types of companies that can be established and managed entirely by one person, such as limited liability companies.

4- What is the difference between a general partnership and a limited liability company?

One of the most prominent differences is that in a general partnership, the partners are personally and fully responsible for paying all debts, while in the case of a limited liability company, each causes debts according to the size of his shares.

5- What are the cases that require adding special clauses to the contract of association?

There are many cases, the most famous of which are the addition of a new partner to the company, or a change in the company's capital and determining the percentages of profits and losses and the mechanism by which these percentages are distributed.

Do you have more inquiries and questions that come to your mind about the form of the company incorporation contract? Contact us immediately.