The new Companies Law in the Kingdom was issued to keep pace with economic developments and encourage investment.

Key Amendments:

1. Limited Liability Company
- Can be established by a single person
- Minimum capital of one riyal
- Greater management flexibility

2. Joint Stock Company
- Reduction of founders from 5 to one person
- Possibility of a simplified joint stock company
- Facilitation in governance

3. Governance and Transparency
- Greater obligations on boards of directors
- Protection of minority rights
- Clear oversight mechanisms

4. Creditor Protection
- Strict procedures to protect creditors' rights
- Restrictions on profit distribution

5. Transformation and Merger
- Facilitation of merger and acquisition processes
- Clear procedures for converting between company types

6. Foreign Companies
- Facilitations for foreign investment
- Possibility of full ownership in certain sectors

Company Establishment Steps:
1. Reserve the trade name
2. Prepare the incorporation contract
3. Deposit the capital
4. Obtain the commercial register
5. Register with Zakat and Tax

Annual Obligations:
- Renew the commercial register
- Prepare financial statements
- Hold the general assembly
- Submit tax returns

Abdul Rahman bin Abdullah Law Firm helps you establish your company under the new law.