professional companies law saudi arabia reflects the nation’s dedication to nurturing a knowledge-driven economy, empowering proficient individuals, and facilitating the development of professional enterprises. It lays the groundwork for a business landscape that promotes specialization, collaboration, and the adoption of industry best practices.
In the following sections of this article, we will delve into the essential provisions pertaining to the establishment of professional companies in Saudi Arabia. Furthermore, we will spotlight the legal services offered by Corporate lawyers in Saudi Arabia in the context of professional companies.
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professional companies law saudi arabia.
What is the professional companies law in Saudi Arabia??
The professional companies law saudi arabia is governed by the provisions of the Saudi Arabian companies law. Under the new regulations, professional companies can now be established among individuals licensed to practice multiple free professions, unlike the previous regulations that limited it to a single free profession. This legislation oversees all forms of companies, including professional companies. It establishes regulations for the establishment and operation of professional companies.
Foreign professional companies are permitted to become partners in Saudi professional companies, with Saudi licensed partners or shareholders holding at least 25% of the company’s capital, as specified in the regulations.
The foreign professional company must have a reputable standing in its home country, employ representatives licensed to practice the relevant profession, and transfer expertise and technical knowledge to the Saudi professional company while providing training to Saudi individuals.
It should be noted that the establishment of a professional company in Saudi Arabia is permitted under Article 198 of the new Saudi Companies Law, which allows for the following types of company structures:
- Partnership Company.
- Simple Recommendation Company.
- Joint Stock Company.
- Simplified Joint Stock Company.
- Limited Liability Company.
Establishing professional companies in Saudi Arabia.
The Ministry of Commerce and Investment is responsible for licensing professional companies law saudi arabia. The required information for the articles of association or bylaws includes partner/shareholder names, registered office, company name, purpose, duration, management, capital, financial year, and dissolution.
Licensed individuals practicing multiple free professions can establish a professional company, and a joint professional company can be formed between individuals licensed in one or more free professions and foreign professional companies.
Non-licensed individuals can participate or invest in the professional company, except for joint stock and simple recommendation companies. Partners or shareholders can convert the professional company into another form of company as specified in the regulations.
The new Saudi Companies Law includes provisions that outline the requirements, regulations, and necessary procedures for establishing various types of companies in Saudi Arabia. When establishing a professional company in Saudi Arabia, the following key requirements and procedures should be followed:
- Name of the professional company: The name can be in Arabic or any other language, derived from its purpose or distinctive.
- Articles of Association or Bylaws: The professional company can be established based on either articles of association or a set of bylaws. If formed through articles of association, the permissible forms are partnership companies, simple recommendation companies, and limited liability companies formed by several persons. If established through bylaws, the options are joint-stock companies, simplified joint-stock companies, and single-member limited liability companies.
Legal Services in Professional companies in the Saudi system.
Al-Dossary’s jeddah law firm provide a wide range of legal services, including:
- legal advice in Saudi Arabia on corporate law, employment law, intellectual property law, commercial law, and regulatory compliance.
- Assisting with drafting, reviewing, and negotiating contracts and legal agreements and dealing with breach of contract in saudi arabia
- Advising on corporate governance matters, including the establishment of corporate structures, compliance with corporate laws and regulations.
- Providing legal support in Mergers and Acquisitions in Saudi Arabia.
- Offering guidance on employment contracts, HR policies, labor law compliance, employee benefits, dispute resolution, and employment-related litigation.
- Representing companies in legal disputes and providing guidance on dispute resolution mechanisms such as negotiation, mediation, and arbitration.
- Handling litigation proceedings in courts and tribunals to protect the company’s interests.
- Providing guidance on industry-specific regulations, licensing requirements, anti-corruption laws, data protection, and other legal obligations.
- Drafting and reviewing real estate contracts, conducting negotiations, and ensuring compliance with relevant laws and regulations.
- Assisting in optimizing tax obligations and ensuring compliance with the Saudi tax system.
How much does it cost to start a company in Saudi Arabia?
The cost of starting a company in Saudi Arabia varies depending on factors like company type, capital investment, and government fees. Generally, it can range from SAR 15,000 ($4,000) to SAR 30,000 ($8,000), considering the specific company type and required services.
As a conclusion to our topic.
professional companies law saudi arabia 5 types of companies.
We observe that the professional companies law saudi arabia establishes a robust framework for the formation and functioning of professional companies. It enables licensed individuals to engage in multiple free professions and allows for collaborations with foreign entities.
The best lawyers in Saudi Arabia from Al-Dossary law firm can provide valuable guidance and assistance throughout the process, ensuring the successful establishment and operation of professional companies in compliance with the law.
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