Foreign companies allowed to invest in Saudi Arabia

Legal Entities Allowed for Foreign Investor in Saudi Arabia

Saudi Arabia seeks to enhance its investment environment and attract foreign investors by providing a variety of legal entities that suit their investment needs. According to the Unified Working Document in the Investor Services Sector issued by the Ministry of Investment, foreign investors have the following options:

Invest Saudi

1. Limited Liability Company (LLC)

• Description: A legal entity consisting of two to fifty partners, and the liability of the partners is limited to the amount of their shares in the capital.
• Advantages:
  • Flexible management and operation.
  • Suitable for a wide range of commercial activities.
• Requirements:
  • Number of partners: 2 to 50 partners.
  • Minimum Capital: Determined based on activity.

2. Sole proprietorship limited liability company

• Description: A company owned by one person, whose liability is limited to the amount of the capital shared.
• Advantages:
  • Full owner’s control over decisions.
  • Legal protection for the individual investor.
• Requirements:
  • One owner.
  • Minimum Capital: Determined based on activity.

3. Joint Stock Company

• Description: A company whose capital is divided into shares of equal value, negotiable, and in which a number of shareholders participate.
• Advantages:
  • The possibility of raising large capital through a share offering.
  • Suitable for large and diverse projects.
• Requirements:
  • Number of Shareholders: At least 2.
  • Minimum Capital: Determined based on activity.

4. Branch of a foreign company

• Description: A branch of a foreign company registered outside the Kingdom, practicing its activities within Saudi Arabia.
• Advantages:
  • Expand the parent company’s business to the Saudi market.
  • Leverage the reputation and expertise of the parent company.
• Requirements:
  • Branch registration with the Ministry of Investment.
  • Submit legal documents to the parent company.

5. Professional Partnership Company

• Description: A company consisting of professional partners who are licensed to practice a freelance profession, such as law or engineering.
• Advantages:
  • Bringing professional expertise into a single entity.
  • Sharing responsibilities and profits between partners.
• Requirements:
  • All partners hold valid professional licenses.
  • Registration of the company with the competent authorities.

The end

Saudi Arabia offers a variety of options of legal entities to meet the needs of foreign investors, reflecting its commitment to enhancing the investment environment. Choosing the right entity depends on the nature of the business and the investor’s goals. If you need advice or assistance in setting up your business, don’t hesitate to reach out to our team at Absher Management Services.

For more details, contact us at:

• WhatsApp: +966 547788824 / +966 549240108
• Instagram: @absherbuiness