Get Started in Business with Expert Legal Guidance
Musa & Partners Company is a leading Law Services Firm in Saudi Arabia, with a team of highly qualified legal experts specializing in company establishment.
We offer comprehensive business solutions and legal services to navigate the process smoothly and efficiently.
We provide various packages tailored to meet the needs of Saudi, Gulf, and foreign investors seeking to establish their entities in the Kingdom.
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Our Pre-Establishment Services
Understanding Company Forms in the New System:
1. Solidarity Company
A company founded by two or more natural or legal persons who are personally liable for all their funds and in solidarity with the company’s debts and obligations; Partners acquire merchant status with this type of company.
2. Simple Recommendation Company
This company consists of two teams of partners:
- A team with at least one partner in a natural or legal capacity, personally responsible for all their funds and in solidarity with the company’s debts.
- A team with at least one partner, in a natural or legal capacity, acting as a limited liability partner responsible for the company’s debt within the limits of their share.
3. Joint Stock Company
This is a corporation founded by one or more persons, where the capital is divided into negotiable shares. Only the company is liable for obligations arising from its activity, and shareholder liability is limited to the value of their shares.
4. Simplified Joint Stock Company (New)
This is a company developed under the new corporate system, with several advantages:
- There is no minimum company capital requirement.
- Allows issuing multiple types and categories of equity with varying rights, obligations, and restrictions.
- It can be administered by one or more Directors, a Board of Directors, or other structures.
- There is no requirement for public associations to exist, allowing contributors to exercise those competencies and determine who assumes them.
- The Company’s system establishes the quorum basis for the validity and decisions of shareholders’ meetings.
5. Limited Liability Company
A company founded by one or more persons, independent of each partner’s financial assets.
Only the company is liable for obligations arising out of or arising from its activity.
The partner is only liable for obligations to the extent of their equity share.
What is a Company?
A company is a legal entity established to conduct business for profit, it consists of a group of shareholders who provide the capital necessary for its establishment and operation.
Each shareholder’s share of the profits is determined based on their financial contribution.
Legal Framework for Companies in Saudi Arabia
Article 2 of the Saudi Companies System states:
“The Company is a commercial agreement concluded between two or more persons, aimed at carrying out a joint activity to achieve a commercial profit. Under this system, the Company is considered in most types of companies as an independent legal personality, with legal and financial rights and obligations of its own.”
The Saudi Arabian government formally acknowledges companies as autonomous economic units, composed of individuals who collectively form a distinct legal entity.
These corporate structures must be officially registered with the Ministry of Commerce and are subject to a comprehensive framework of domestic and international laws and regulations.
Book a consultation with Musa & Partners to ensure your rights are protected.
Documents Required to Establish a Company in Saudi Arabia:
The procedure for establishing a company in Saudi Arabia requires processing the following documents:
1. Copies of the owner’s personal ID card or passport.
2. Replica of the company’s commercial registry to be created.
3. Bank account registered in the name of the company.
4. Document showing the company’s headquarters, address, and engineering drawing.
5. A contract of ownership or lease of the company’s location.
6. The company’s founding contract between the partners, with the signature of each, including all information about the company, its director, its terms of reference, and the share of each partner.
7. Company insurance contracts and related property, as well as employees’ insurance contracts.
Establishment Stages in Saudi Arabia
Stage A: Extracting the Commercial Registry
1. Complete necessary paperwork and documents according to the company’s legal form (people’s or money-based companies).
2. Select your company activity.
3. Obtain a certificate of unequivocal trade name.
4. Deposit capital in the company’s bank account and bring a statement from the bank confirming the deposit.
5. Receive the commercial registry.
Stage B: Extracting the Tax Card
- Present the original commercial registry.
- Provide proof of lease for the company’s premises or a registered contract for the company’s headquarters if owned.
- Submit the partnership contract (if applicable).
- Provide water or electricity proof for the location.
Stage C: Extracting Licenses for Activity
At this stage, private licenses will be obtained according to the company’s activity.
Musa Law Services Firm’s Expertise
Musa Law Services Firm boasts a team of top lawyers specializing in commercial matters, drafting all types of contracts in all languages, establishing companies, registering in commercial records, opening company government files with the Zakat, Tax, and Customs Authority, and obtaining required licenses and security approvals throughout Saudi Arabia.
Documents and Procedures for Foreigners Establishing Companies in Saudi Arabia:
To establish a company in Saudi Arabia as a foreigner, as our experience as a Law Services Firm, you must collect the following documents:
- Certified and certified trade registry.
- Company owner ID card.
- General Manager Data.
- Certificate of good conduct and conduct.
- Necessary licenses.
- Certificate of capital deposit.
- Legitimate power of attorney.
- Headquarters lease (if required).
Musa Law Services Firm provides comprehensive legal support throughout the company establishment process for foreign investors.
General Conditions for Company Registration in Saudi Arabia:
- Be a Saudi national partner or resident in Saudi Arabia.
- Sufficient capital for business activity.
- A fixed headquarters in Saudi Arabia.
- A compatible accounting system.
Musa Law Services Firmoffers a team of experienced professionals to guide you through the establishment process, ensuring compliance with all regulations.
The Importance of Companies
Companies play a vital role in the global and local economy by:
- Stimulating and encouraging investments.
- Fostering social integration.
- Driving innovation.
- Supporting technology advancement.
- Developing skills and training opportunities.
- Encouraging entrepreneurship.
Why Choose Musa & Partners for Company Establishment?
Musa & Partners provides exceptional legal services to support businesses at all stages of growth, both locally and internationally.
Our expertise in company establishment includes:
- Formulating contracts.
- Providing legal advice.
- Pursuing legal matters.
- Managing tenders and auctions.
- Attending Board of Directors meetings.
- Handling legal certificates and licenses.
- Drafting legal documents.
- Chairing administrative committees.
- Representing employees.
- Preparing legal notes.
- Following legal amendments.
- Staff training and development.
- Skills Needed for a Corporate Lawyer
A corporate lawyer should possess a deep understanding of company formation, types of companies, legal documentation, partner relationships, company rules, and contract drafting.
Musa & Partners offers a team of highly skilled corporate lawyers to meet your needs.
