The limited liability company has become one of the most ideal options and legal forms that attract entrepreneurs and investors due to the protection it provides for the property of its owners and the flexibility in its management.
Below, we will learn together about everything related to the procedures for establishing a limited liability company, its importance, and everything related to it. Follow me in this article
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A limited liability company, according to what is stated in Article 156 regarding company laws, is a company established by one or more persons and is distinguished by its financial independence that is not linked to any partner in it or its owner, as the company alone is responsible for the debts and obligations incurred by it or arising from its activity, and the owner or partner is not responsible for these debts and obligations except to the extent of his share in the company's capital.
Establishing a limited liability company is very important, especially for entrepreneurs and investors, for several reasons, the most important of which are:
A limited liability company is one of the best companies that protect personal property because it separates its capital from what the company owners own, as the company owners are not personally responsible for the debts or obligations of this company.
This company
enjoys the flexibility of its administrative structure, as the company owners
can manage it themselves or hire competent people and appoint them to do this
work.
Low taxes.
These
companies are usually treated as pass-through entities, as profits and losses
are passed on to the owners, so the tax payment system is on a personal level,
which makes it less.
Ease of management and establishment.
This company enjoys relative ease and lack of complexity in establishment and management compared to other types of companies, and what it also requires to operate it and government reports are less in most cases.
The limited liability company always gains and enhances the trust of customers and suppliers and appears professional and reliable due to the impression of seriousness and credibility that it shows and proves to customers during business dealings.
This company is characterized by continuity and does not stop even in the event of the death of any partner, his heirs take his place and even if any person withdraws, it remains as it is and never shakes, which provides businessmen with long-term stability.
Before starting the procedures for establishing a limited liability company, you must be aware of the necessary conditions for establishing a limited liability company, and the most important of these conditions are the following:-
1_ The
obligations of each partner are limited according to the size of his share in
the company's capital.
2_ You can
establish a limited liability company for any legal project according to what
is stipulated in the regulations.
3_ The
number of members of the company's board of directors ranges between 3-15
members.
4_ If there is a participant affiliated with a government agency, a legal
document must be present to give him the right to establish the company or
contribute to it.
5_The
presence of a license from the Saudi Central Bank for this company.
6_In the
event that the founder is under the legal age, there must be a guardianship
deed for this person.
7_The
partners must not be employees of government agencies.
8_All
financial fees must be paid by the regulations and systems.
9_The partners must have valid professional licenses.
1_The first
and most important step is to fill out the initial contract form that
includes all the basic information about the company.
2_Fill out
the security inquiries form, especially if one of the shareholders is a
foreigner, and this is done by the Security Information Office for Investment.
3_Obtain a
certificate documenting that the trade name is not similar to any other name
and that it is identical to what is stated in the regulations.
4_The
presence of a form to follow up on the file's progress is used in drafting
the company contract and includes the approval of all partners on all terms of
the contract.
5_Pay all
required fees.
6_The establishment decision must be followed up until it is confirmed that it has been issued, then submit the registration form and wait for the decision to establish the company.
There are
many important procedures for establishing a limited liability company in Saudi
Arabia, which we show below
1_A suitable
and primary headquarters for the company must be chosen.
2_Choose the
appropriate company name for its activity that it will practice according to
the regulations and systems.
3_Complete
the company contract that contains all the information related to the company
and companies.
4_Register
the company's incorporation contract in the commercial register.
5_Complete
all additional procedures and licenses necessary to establish the company.
6_Open a
bank account for this company.
7_Register
for zakat, taxes, and social insurance.
8_After completing all these procedures, you can start working legally.
After we learned about the procedures for establishing a limited liability company, it is necessary to know the data and form of the incorporation contract for this company, which is according to what is stated in Article 158 in the establishment of companies. The incorporation contract of a limited liability company states the following.
1_Names of
the partners and their data.
2_Company
name.
3_Company
headquarters.
4_The
purpose of this company.
5_The amount
of the company's capital and each partner's share in it.
6_Partners'
acknowledgment of payment of the value of these shares.
7_If this
company is for a temporary period, the period must be written.
8_Who
manages the company and who are the members of the board of directors?
9_How shares
are waived.
10_The
method followed in the event of directing the notifications that the company
may direct to the partners.
11_Decisions
of this company and how to divide profits and losses among the partners.
12_Dates of
the start and end of the fiscal year.
13_What will happen in the event of the company's expiration?
1- What is a
limited liability company?
A limited liability company is a type of company in which one or more persons participate and is characterized by the fact that the partners’ liability is limited to their shares in the capital, which means that their personal property is not threatened by the company’s debts.
Learn more About Establishing Company in SA
October 22, 2024
- بواسطة Ibrahim Elsiofy
