2/1 – Companies
Main Articles of the Saudi Companies’ Law:
The Saudi Companies’ Law issued by the Royal Decree No. (6) and Order No. 185/1385H, and amended by the Royal Decree No. M/3 and the Ministerial Decree No. 30/1437H, deals with several matters including the method of foundation of different types of companies in the Kingdom of Saudi Arabia, and their organization, management, merger, liquidation and dissolution, namely:
1) – General partnerships
A general partnership similar to partnerships of states that adopt the common law and it has officials jointly liable for the general partnership’s debts.
2) – Limited Partnerships:
A limited partnership consists of two teams of partners, one including at least one joint partner who shall be liable in his entire funds for the partnership’s debts, and the other including at least one dormant partner whose name does not appear in the limited partnerships’ management and shall be liable for the partnership’s debts to the extent of his share in the capital.
3) – Joint Ventures:
A joint venture neither enjoys a legal personality nor subjects to the notarization procedures.
4) – Joint Stock Companies:
5) – Limited Liability Companies:
The articles of incorporation of a limited liability company may provide for the increase of its capital by the partners, entry of new partners or reduction of its capital through the exit of any of its partners.
6) – Cooperative Companies:
A cooperative company is a joint stock company or a limited liability company to be founded by a Royal Order, and usually it is a governmental company.
The Saudi Companies’ Law prohibits the foreign companies from issuing stocks unless they get the approval of the competent authorities.
According to the Saudi Comp
