Saudi Arabia Limited Liability Company (LLC)
- The most common type of business entity used is the Limited Liability Company (LLC).
- A limited liability company of foreign origin needs a license for foreign capital investment from the local administration. It must also appoint at least a director and two shareholders of any nationality. The minimum share capital required for a foreign entity is USD 134,000.
- Depending on the activities of the entity, the local administration maintains a checklist for higher capital requirements. Furthermore, the capital requirements are different for companies engaged in manufacturing, trading, real estate, agricultural and industrial activities.
- The entity must appoint an auditor and the accounts must be audited and submitted annually.
Saudi Arabia Agency Agreement Company
- For clients who are not from the Gulf Cooperation Council countries, we recommend that a business agent be appointed instead of a company being formed. This strategy allows to avoid the requirement of an investment license. The agent to be appointed must be registered and must sign a contract with the company of our clients.
- The appointed commercial agent is responsible for the representation and promotion of the parent company and for the sale of goods and services under the terms and conditions required by the parent company. However, this strategy is not beneficial to our clients who are willing to move to Saudi Arabia, as the commercial agent will only be allowed to hire Saudi Arabia’s residents / citizens.
Saudi Arabia Joint Stock Company – JSC
- A JSC must appoint at least two shareholders and three directors of any nationality. This applies to investment in JSCs and LLCs by foreign entities / individuals. The capital requirement is USD 134,000. If approved by the local administration, the share capital can be paid in installments, provided the subscription amount is not less than a quarter.
- A JSC must appoint an auditor and file an audited financial report annually.
Saudi Arabia Limited Partnership
- A limited partnership requires a director and two partners who can be of any nationality or residence. There must be a general or managing partner and a limited partner. There is no capital requirement for limited partnership registration.
Saudi Arabia GCC branch company
- Only an existing Gulf Cooperation Council company can establish a branch. This entity requires one shareholder and one director of GCC nationality.
- The branch must appoint a legal representative resident in Saudi Arabia to carry out the branch’s management and administration.