Establishing a successful company in Saudi Arabia begins with a thorough understanding of the types of companies stipulated in the new Companies Law. of the new Companies Law Each type has its own unique characteristics, features and legal requirements that distinguish it from the rest. If you are wondering which type of company is best suited to your ambitions and resources, which type protects you from personal liability, and which type ensures that you achieve confidence in the market, here you must seek the help of lawyers and consultants specialized in the corporate system.

Invest Global recognizes these challenges and offers you a practical guide to choosing the right type of company to build a solid legal foundation to succeed in the Saudi market.

Learn about the types of companies in Saudi Arabia and how to choose the best type for your company:

Article four of the Saudi Companies Law We will review the types of commercial companies approved by the new law, focusing on the most important updates for each type and how Invest Global can help you choose the right type for your business.

1. Solidarity Company:

   This type of company is characterized by mutual trust between partners and customers, ease of establishment and management, but it carries a high degree of risk due to the absolute personal responsibility of the partners for the company’s debts.

2. A simple partnership:

   It consists of two types of partners, solidarity partners who are jointly responsible for the company’s debts and recommended partners who are responsible for the company’s debts to the extent of their shares in the capital This company combines the advantages of the solidarity company and the joint stock company, as it provides the recommenders with relative protection from personal liability.

3. Joint Stock Company:

   It is considered one of the most important types of companies where the capital is divided into shares of equal value and the shareholder is responsible for the company’s debts to the extent of the value of his shares only. This company is characterized by its ability to raise large capital and is the best choice for large projects that require huge investments.

4. Simplified Joint Stock Company:

   This is a relatively new type of company and is suitable for small and medium-sized startups as it is governed by the provisions of an unlisted shareholding company.

5. Limited Liability Company:

   It is the most common company in the Kingdom of Saudi Arabia and consists of one or more persons and the company is solely responsible for debts and obligations to the extent of its capital This company combines the advantages of the solidarity company and the joint stock company, as it provides relative protection from personal liability and is characterized by ease of establishment and management.

How does Invest Global help you choose the right type of business?

Choosing the right type of business company is a very important decision as it directly affects the legal liability, amount of capital, management structure, taxation and other important aspects, and here comes the role of Invest Global We provide integrated consulting services to help entrepreneurs and investors make the right decision to choose the legal form of the company to suit your business activity in the Kingdom.

How to turn your idea into a successful company Invest Global is your guide to building your investment in Saudi Arabia:

• Comprehensive analysis of your business: We carefully analyze the nature of your business, the size of investments required, potential risks, and future goals to determine the most suitable options for you.
• Comparison of company types: We provide you with a detailed comparison between all available types of commercial companies suitable for your type of investment, explaining the advantages and disadvantages of each type and how they affect your business.
• Legal advice: Our team of lawyers and legal advisors specialized in corporateand investment law provide in-depth legal advice on the incorporation and operation requirements for each type of company and the legal liability of the partners according to the type of company.
• Incorporation and registration procedures: We handle on your behalf all the legal and administrative procedures necessary to establish and register your company, from preparing the memorandum and articles of association to obtaining the necessary licenses and starting to invest.
• Ongoing support: We provide you with ongoing support, follow-up, legal and financial advice after your company is established to ensure compliance with laws and regulations and to overcome any difficulties you may face in the future.

Are you ready to launch your business? Invest Global offers a practical guide for entrepreneurs:

1. Set your goals clearly: Before choosing a company type, determine your long-term goals and vision for growth. Do you plan to expand quickly? Do you need to attract outside investment?
2. Assess your legal liability: Are you willing to take personal responsibility for the company’s debts? Or do you prefer a structure that protects your personal assets?
3. Consider the financial requirements: Capital requirements and legal costs are different for each type of company, so compare the different options and choose the one that best fits your budget.
4. Consult legal experts: Don’t hesitate to seek advice from our lawyers who specialize in company formation and can help you understand the legal intricacies and choose the optimal form.
5. Comply with regulatory requirements: Make sure you meet all the regulatory requirements and licenses needed to start your investment and make sure you get the necessary approvals from the relevant government agencies. Don’t let legal hurdles hinder your activity and ambitions.

With Invest Global, your path to success starts here