This service allows the investor to convert a sole proprietorship into a company.
- Requirements and Conditions:
- The commercial register must be active.
- The commercial register must not be canceled, suspended, or revoked if one of the partners is a legal entity.
- The applicant must be at least 18 years old. If the partner is a minor, a guardianship deed must be provided.
- The applicant must not be a government employee.
- The applicant must be the owner of the enterprise or authorized through an electronic authorization.
- A legal mandate must exist if one of the partners is a government entity, granting them the right to establish or participate in a company.
- Obtain preliminary approval or license from the Saudi Central Bank, Capital Market Authority, or Insurance Authority if the activity requires it.
- Submit a draft of the Articles of Association.
- Verify submission of the establishment contract or Articles of Association if one of the founders is a company.
- Provide a bank certificate if the share is in cash or an accredited evaluator’s report if the share is in-kind; applicable when converting to an unlisted joint-stock company, or if the share value exceeds half the capital when converting to a simplified joint-stock company.
- The issued capital must not be less than 500,000, and the paid-up capital must not be less than one-quarter when converting to an unlisted joint-stock company.
- A waiver decision from the owner of the enterprise must exist if they are not a partner in the company.
- Verification for Professional Company Type:
- Valid professional licenses for the partners.
- The licensed Saudi partner’s share in a mixed company must not be less than 25%.
- Licensed partners must constitute at least 70% of the company.
- Contact:
https://iwtsp.com/966556529999 