Establishing simple limited partnership companies is an ideal choice and a very important step for all entrepreneurs and investors in Saudi Arabia. It is also a solution for those who want to divide responsibilities and obligations between partners.
These companies are considered one of the very common and widespread forms in Saudi Arabia. Therefore, below we will learn more about the procedures for establishing a simple limited partnership in Saudi Arabia and the advantages and disadvantages of this company as well. Follow me.
It is one of the types of companies in the Kingdom of Saudi Arabia and is a form of personal company. It consists of two basic types of partners; General partners who are responsible for assuming all the company's debts and obligations through their own money and are also responsible for managing all the company's affairs and various businesses. The other type is limited partners who are responsible for paying the company's debts and obligations within the limits of their share of the capital and do not have the right to manage the company or practice any of its various businesses.
According to the Saudi Companies Law, the Simple Limited Partnership Law stipulated some articles, which are:
1_ The company consists of two types of partners; a joint and several teams responsible for all obligations related to the company, its management, and paying its debts from its funds, and another limited team that is obligated to the extent of their share in this company.
2_ The provisions related to the joint and several companies also apply to simply limited partnerships.
3_ The name of the company is either the names of all participants or one partner with a word indicating the presence of partners with him.
4_ This company must be associated with a name that indicates that it belongs to simply limited partnerships.
5_ The joint and several partners are the ones who manage all the company's affairs, and the limited partners do not have the right to interfere in that.
6_ The company is not dissolved due to the death of one of the limited partners, but rather what was agreed upon in the articles of association is applied.
7_ The limited partner may waive his share to another partner or any person, but the partners must agree to that.
To establish a successful simple limited partnership, it is necessary to know the conditions for establishing this company in Saudi Arabia. The most important of these conditions are:
1_The founders must have a permit to practice the professional activity of this company.
2_Follow all instructions and provisions related to establishing companies in Saudi Arabia and do not violate them.
3_Availability of all necessary papers and documents for the procedures for establishing a simple limited partnership, adhering to Saudi laws and regulations.
Simple limited partnerships enjoy many characteristics that distinguish them from other companies in Saudi Arabia. These characteristics are agreed upon and clarified during the preparation of the company's articles of association. Among these characteristics are the Types of partners
As this company includes two basic types of partners, there is the guarantor partner who is responsible for all matters and obligations of the company, its management, and the payment of its debts in person, while the limited partner is responsible according to the size of his shares and does not interfere in the management of the company.
The company name must be chosen and there must be evidence that this company is a simple limited partnership. The company name may be the name of all partners or the name of a general partner with evidence that there are partners who share with him in this company.
This company is also distinguished by the fact that you can assign shares to another partner with you in the same company or to another person from outside, but all partners must agree to this.
The general partner must have the status of a merchant or work to acquire it quickly. This helps him in managing all the company's affairs, and the limited partner does not have the right to interfere in such matters.
Some steps must be followed to establish a simple limited partnership without facing any obstacles. The most important of these procedures are:
It is very important to create the Articles of Association according to what is stated in the regulations and bylaws and includes the basic data about the company, such as
1_The names of all partners and their data.
2_The company's main headquarters.
3_The company's name and there must be a mark indicating that this company is a simple limited partnership and its purpose.
4_The size of the company's capital and each partner's share of the shares.
5_The management system of this company.
6_The duration of this company if it is temporary.
7_How decisions are made in this company.
8_The method followed to distribute profits and losses.
9_The provisions followed in the event of dissolving this company.
10_The start and end date of the fiscal year of this company.
After completing the preparation of this company's articles of association, it must be published at the company's headquarters and then published in all newspapers.
This is done by submitting a request to register the company with the General Administration of Companies.
Registering the company in the commercial register
One of the most important procedures for establishing a simple limited partnership is registering the company in the commercial register. This is done by submitting a request to register this company in the commercial register. This request includes
-The name and type of the company.
-The activity that this company will practice.
-The start and end date of this company.
-The names and data of the partners and shareholders in this company.
-The names and data of the board of directors and the directors of this company.
-Address of the head office and branches of this company.
After completing these procedures and the rest of the necessary licenses, the partners can start the actual legal work and practice the company's activity.
Advantages of establishing a simple limited partnership
The simple limited partnership has many advantages, the most important of which are:
1_ The diversity of partners who contribute to its establishment.
2_ The ease of establishing a simple limited partnership as it does not require any additional or complicated procedures.
3_ Ensuring the success and strength of this company due to the diversity of its partners and the diversity of their experiences and maintaining the leadership and seriousness of this company.
4_ These companies are based on personal consideration and it is necessary to obtain the approval of all partners before doing anything such as transferring a partner's share to another person.
Although they have many advantages, these companies suffer from some shortcomings, the most prominent of which are
1_ Overlapping administrative responsibilities if the correct system that will be followed to manage the company is not determined.
2_ You cannot transfer any ownership unless the company contract stipulates this and obtains the approval of all partners, which causes complications and disruption to the company's activity at times.
3_ The possibility of conflicts occurring between shareholders and partners while making decisions.
4_ Facing difficulty in attracting customers and providing an experienced, efficient, and skilled staff.
The minimum capital required to establish a company in Saudi Arabia varies depending on many factors such as the type of company to be established, the approved investment system, and what the Ministry of Zakat and Investment imposes on this company.
There is nothing better than Etmam Company to carry out such procedures as it helps you complete these procedures quickly in accordance with the rules and regulations provides you with all strategic and financial consultations and helps in establishing your company entity successfully and systematically.
Establish a Company In Sa now easily and quickly with Etmam Company. Contact us.
October 14, 2024
- بواسطة Sultan Al-Qahtani
