Joint stock companies

  • Service Description:
This service enables investors to begin practicing commercial activity and establish a joint-stock company, established by one or more natural or legal persons. Its capital is divided into tradable shares. The company alone is responsible for the debts and obligations incurred by it or arising from its activity. The shareholder's liability is limited to paying the value of the shares he subscribed to. Through the service, the following is accomplished:
  • Commercial register and articles of association/articles of association.
  • Publish the contract in my business newspaper.
  • Opening an establishment file with the Ministry of Human Resources and Social Development.
  • Registration with the Zakat, Tax and Customs Authority.
  • Register for social insurance.
  • Subscribe to the approved business address with Saudi Post.
  • Membership in chambers of commerce by location.
  • Conditions and requirements:
  • The existence of a legal document if one of the partners is a government entity, a civil institution, a charitable association, or an endowment; this authorizes him/her to establish a company or participate in a company.
  • A license from the Saudi Central Bank, the Insurance Authority, or the Capital Market Authority, if the activity requires it.
  • The presence of a bank certificate if the share is cash, or an approved appraiser’s report if the share is in kind.
  • Submitting a draft of the bylaws.
  • The age must not be less than 18 years, and if the partner is a minor under the age of puberty, a guardianship deed must be submitted.
  • The partners must not be government employees.
  • The commercial register must not be cancelled, suspended or stopped, if one of the partners is a legal partner.
  • The issued capital shall not be less than 500,000, and the paid-up capital shall not be less than a quarter.
  • Verify the following if the company’s status is (professional):
  • The existence of a valid professional license for the entities and professional individuals who founded the company.
  • The presence of at least one licensed person among the shareholders for each profession related to the practice of liberal professions within the scope of the professional company’s activity.
  • The percentage of licensed Saudi shareholders in the joint venture company must not be less than 25% of the compa
  • Service Description:
This service enables investors to begin practicing commercial activity and establish a simplified joint-stock company, established by one or more natural or legal persons. Its capital is divided into tradable shares, and the provisions of joint-stock companies apply to it unless specifically provided for. Through the service, the following is accomplished:
  • Commercial register and articles of association/articles of association.
  • Publish the contract in my business newspaper.
  • Opening an establishment file with the Ministry of Human Resources and Social Development.
  • Registration with the Zakat, Tax and Customs Authority.
  • Register for social insurance.
  • Subscribe to the approved business address with Saudi Post.
  • Membership in chambers of commerce by location.
  • Conditions and requirements:
  • The existence of a legal document if one of the founders is a government entity, in compliance with the rules for dealing with requests from public entities, a civil society organization, a charitable association, or an endowment, which entitles him to establish a company or participate in a company.
  • A license from the Saudi Central Bank or the Insurance Authority, if the activity requires it.
  • The existence of an approved evaluator’s report if the share is in kind, if the share value exceeds half of the capital.
  • Submitting a draft of the bylaws.
  • Verify the submission of the articles of association or bylaws, if one of the founders is a company.
  • The commercial register must not be cancelled, suspended or stopped, if one of the partners is a legal partner.
  • The age must not be less than 18 years, and if the partner is a minor under the age of puberty, a guardianship deed must be submitted.
  • The partners must not be government employees.
  • Verify the following if the company’s status is (professional):
  • The existence of a valid professional license for the entities and professional individuals who founded the company.
  • The presence of at least one licensed person among the shareholders for each profession related to the practice of liberal professions within the scope of the professional company’s activity.
  • The percentage of licensed Saudi shareholders in the joint venture company must not be less than 25% of the company’s capital shares.
  • - Service Description:
    This service allows the investor to update the operational licenses associated with the commercial register.
    - Requirements and Conditions:
    A valid license must exist that includes the activity registered in the commercial register.
  • Service Description:
This service enables the investor to lift the suspension of the company’s main commercial register after the expiry of the (90) day period from the date of the annual confirmation due date.
  • Conditions and requirements:
  • The commercial register status is suspended.
  • The foreign company must have a valid investment license for a period of no less than (30) days.
  • Fulfilling the requirements for the service of amending the data of the main commercial registry of a company in the event of an amendment.
  • Service Description:
This service enables the investor to transfer the trade name registered in the company's commercial register, acting independently of the store.
  • Conditions and requirements:
  • The applicant or beneficiary must be at least 18 years old.
  • The applicant or beneficiary must not be a government employee.
  • The applicant must be a manager or authorized representative of the company through the Tafawud platform.
  • The name should not be a personal name.
  • The name must be registered in an active commercial register.
  • The transferee must have the same family name, if the trade name is a family name.
  • Service Description:
This service enables the investor to update the data of the main commercial register of a company.
  • Conditions and requirements:
  • The commercial register must be active.
  • The activity must be within the company's objectives.
  • A valid license is required if an activity is added that requires a license prior to issuance.
  • Submit a license cancellation statement if an activity requiring a license is removed before issuance.
  • Specify the practice of e-commerce if the applicant is a practitioner of it.
  • Check the following if the company is foreign:
  • The facility must have an investment license valid for a period of no less than (30) days.
  • The activities added to the application must be compatible with the company’s investment license.
  • Check the following if the company is a joint stock/simplified joint stock company:
  • The presence of the minutes of the meeting.
  • Submit a letter requesting amendments to the company’s publications, certified by the Chamber of Commerce.
  • The members of the Board of Directors shall not be government employees.
  • Service Description:
This service enables the investor to reserve a trade name for a period of (60) days.
  • Conditions and requirements:
  • At least 18 years old.
  • The applicant must be the beneficiary of the trade name, or an authorized representative.
  • The name must consist of Arabic or Arabized words, Arabic letters or numbers, or one or more of them, in the event that a trade name is reserved in the Arabic language.
  • The name must consist of English words, letters, or numbers, or one or more of them, if a trade name is reserved in English.
  • It must not be contrary to public order or public morals, misleading, or prohibited in use.
  • It shall not resemble a trade name reserved or registered in the commercial register, regardless of the type of activity.
  • It must not resemble a trade name, a globally famous trademark, or a registered or famous trademark in the Kingdom.
  • It does not contain any political, military or religious meaning, connotation or content.
  • It must not resemble the name, badge of honor, or symbol of any local, regional, or international organization or any of its institutions.
  • It does not contain a name that is prohibited according to the list of prohibited names.
  • It must not contain the name of a government agency or a semi-government body.
  • Adherence to the controls for reserving or registering the name (Saudi Arabia), or the names of cities, regions, and public places, in accordance with the controls contained in the Trade Names System and its executive regulations.
  • Adherence to the provisions of the executive regulations relating to the reservation of family names as trade names.
  • Submit a letter from the entity requesting the service, if the beneficiary is a government entity or an affiliated entity.
  • Submitting an association license or endowment certificate when requesting to reserve a trade name for an association or endowment.
  • Submit a trademark ownership certificate when applying for a trade name reservation based on a trademark.
  • Note: A trademark name reservation will not be processed if similar or identical names are registered.
  • Service Description:
This service enables the investor to extend the trade name reservation for a similar period, before the reservation period expires.
  • Conditions and requirements:
  • The trade name reservation must be in place.
  • The applicant must be the beneficiary of the trade name, or be authorized by a valid authorization.
  • Service Description:
This service enables the investor to cancel a reserved trade name.
  • Conditions and requirements:
  • The trade name reservation must be in place.
  • The applicant must be the beneficiary of the trade name, or be authorized by a valid authorization.
  • Service Description:
This service enables investors to apply for services that require employee verification.
  • Conditions and requirements:
  • Fulfilling the conditions and requirements according to the type of service required.
  • Service Description:
This service enables investors to identify the natural person who exercises actual and ultimate control over the company, with the aim of achieving transparency in economic and financial transactions.
  • Conditions and requirements:
  • At least 18 years old.
  • The company is not in the process of liquidation according to the bankruptcy law.
  • The applicant must be one of the parties registered in the main commercial register or their representative, according to the company’s description.
  • There must be at least one beneficiary registered in the beneficial owner register if no exemption is added.
  • Note: Individual data retrieved from the National Information Center cannot be modified. Specific modifications to beneficiary data are permitted. Modifiable data includes: personal data, contact information, and address.
  • Service Description:
This service enables the investor to transfer the trade name registered in the commercial register to a company branch, acting independently from the store.
  • Conditions and requirements:
  • The applicant or beneficiary must be at least 18 years old.
  • The applicant or beneficiary must not be a government employee.
  • The name should not be a personal name.
  • The branch name must not be identical to the main company name.
  • The applicant must be a manager or authorized representative of the company through the Tafawud platform.
  • The name must be registered in an active commercial register.
  • The transferee must have the same family name, if the trade name is a family name.

The steps and procedures

  • The proposed company name is reserved through the Saudi Business Center or the Ministry of Commerce's e-portal. This step is necessary before initiating the incorporation procedures.
  • If you need additional time to complete the procedures, you can extend your reservation period through the same electronic channels.
  • If your chosen name is rejected, you can file an objection with the Saudi Business Center or the Ministry of Commerce's e-portal to explain why the name is appropriate.
  • If a name is reserved and no longer needed, you can cancel the reservation to make it available to others.
  • The company's articles of incorporation are prepared at the Saudi Business Center. The articles of incorporation include the founders' details, the company's capital, and its articles of association. After incorporation, the commercial register is issued.
  • This step takes place at the Saudi Business Center. Simplified joint-stock companies offer greater flexibility in establishment and management compared to regular joint-stock companies.
  • If the company is owned by a foreign investor, it must be incorporated in the Saudi Business Center after obtaining a license from the Ministry of Investment.
  • These companies are established in the Saudi Business Center in accordance with the non-profit companies system and are owned by specific partners.
  • It is established in the Saudi Business Center to serve public interests and is subject to special procedures in accordance with the Companies Law.
  • This process takes place at the Saudi Business Center. It requires preparing an incorporation contract for the new company and deleting the registration of the sole proprietorship.
  • If shareholders wish to convert the company to another legal form, a conversion request must be submitted through the Saudi Business Center after preparing the necessary legal documents.
  • This process is carried out at the Saudi Business Center to convert any existing legal entity into a closed joint-stock company or a simplified joint-stock company, following specific procedures.
  • If the parent company decides to transform one of its branches into an independent legal entity, a formal application must be submitted to the Saudi Business Center.
  • This service is intended for foreign companies wishing to establish a regional headquarters in the Kingdom, and is conducted at the Saudi Business Center.
  • After incorporation, a commercial register is issued, which is the legal document authorizing the company to conduct its business. This service is provided at the Saudi Business Center.
  • A mandatory procedure conducted annually to verify the accuracy of company data through the Saudi Business Center or the Ministry of Commerce's electronic portal.
  • To make any changes to the commercial registration data, such as changing the activity or address, a request must be submitted through the Saudi Business Center or the Ministry of Commerce's electronic portal.
  • To change a company's business activities, a modification request must be submitted through the Saudi Business Center or the Ministry of Commerce's e-portal.
  • If there is a need to change the English translation of the company name, a modification request must be submitted through the Saudi Business Center.
  • The amendment request is submitted through the Saudi Business Center or the Ministry of Commerce's electronic portal to change items in the company's articles of association.
  • Changes in Board members are recorded in the Saudi Business Center after a decision is issued by the General Assembly.
  • To obtain an official copy of the commercial register or a statement of the company's status, submit an electronic application through the Saudi Business Center or the Ministry of Commerce's electronic portal.
  • The Ministry of Commerce must be notified of the date and location of the company's general assembly meeting. This is done via the electronic portal.
  • After the assembly convenes, its decisions are submitted to the Ministry of Commerce via the electronic portal for approval.
  • Important decisions of the Extraordinary General Assembly shall be published in official newspapers and approved media outlets.
  • The shareholders' register must be updated periodically at the securities depository center after any changes in ownership.
  • Shareholders can view the number of their shares through the Securities Depository Center.
  • This letter is obtained from the Capital Market Authority to approve specific actions that require its approval.
  • If the commercial registration is suspended, the suspension can be lifted through the Saudi Business Center or the Ministry of Commerce's e-portal after fulfilling the requirements.
  • This process takes place at the Saudi Business Center. It requires preparing a merger agreement between the companies and amending their articles of association.
  • This is the final step in winding up a company. A liquidation application is submitted through the Saudi Business Center and requires the appointment of a liquidator to settle its debts.
  • This service is used to publish important legal proceedings in approved media outlets, such as official newspapers.