TYPES OF COMPANIES IN KSA
Explore a Diverse Array of Business Structures: We provide various company setup options tailored to meet your specific needs in Saudi Arabia, catering to different business requirements and preferences.
Limited Liability Company (LLC)
An LLC is a one of the most common legal entities preferred by foreign investors to set up a company in Saudi company. A minimum of one shareholder and not more than fifty shareholders is required for the business registration process. If the shareholder count exceeds fifty, the LLC must be converted to a Joint Stock Company within a year.
Joint Stock Company (JSC)
Saudi joint stock is the equivalent of a publicly listed company. Closed JSC are unlisted, public JSC is listed on the Saudi Stock Exchange and are subject to a much higher degree of oversight. This company setup structure is popular with multinational companies or companies that are already publicly listed on other stock exchange markets. The company laws in Saudi states if the number of shareholders exceeds more than fifty in a limited liability company must be converted to a joint stock company within a year.
Branch of a Foreign Company
A foreign company can setup and operate a foreign owned Saudi branch office. This entity type is also preferred by foreign companies to enter the Saudi market. Upon registration the branch business activities must match the parent company. Post setup the Saudi branch can only engage in commercial activities within the license’s scope, participate in public or private sector contracts, sponsor foreign employees for residency, obtain a corporate bank account, invoice customers and pay suppliers etc.
Technical and scientific services office
Technical and Scientific Services Offices are meant to provide technical support to the parent company’s Saudi Arabian agent or distributor. TSO is not permitted to carry out any sale activities and there is no minimum capital requirement.
The Establishment
The Establishment structure for a Saudi company is similar to sole proprietorship in other regions. This company type has a single owner and is only eligible to Saudi or a GCC nationals. The company owner of an Establishment is personally liable for any debts the business may accumulate.
