المدونة

In conjunction with the development of the Kingdom of Saudi Arabia’s economy and the activation of many huge projects, the demand for innovative financial services that are compatible with international standards in the fields of financing and refinancing has increased.

A joint-stock company is a company established by one or more persons, of natural or legal capacity, and its capital is divided into tradable shares. The company alone is responsible for the debts and obligations resulting from it or arising from its activity, and the shareholder’s responsibility is limited to paying the value of the shares for which he subscribed. .

The lawyer has the necessary knowledge and experience that helps you understand the laws and legislation related to your legal situation. He also represents you in the courts and judicial authorities, works to protect your rights, and helps you prepare various legal documents and documents such as contracts, agreements, etc.

There is a need to establish a law firm in Saudi Arabia to meet the legal needs of citizens and residents of all kinds, protect rights and freedoms, and access to prompt justice, in accordance with the legal system adopted in the country.

The Kingdom of Saudi Arabia is witnessing an increase in the establishment of startup companies on its soil, as startup companies are currently considered one of the most important economic engines of the Kingdom

Initially, Article Five of the rules regulating foreign investment in securities issued pursuant to Capital Market Authority Resolution No. (2-26-2023) permitted foreign natural and legal persons, whether residing in the Kingdom or non-residents, to invest in listed securities, debt instruments and investment funds. However, Article Six of the same rules stipulates that investment by non-resident foreigners in stocks listed on the main market is limited to the following categories:

- The General Assembly elects the members of the Board of Directors for the period stipulated in the company’s bylaws, provided that this period does not exceed four years. In all cases, the members of the Board of Directors are required to be natural persons. Members of the Board of Directors may also be re-elected, unless the bylaws stipulate. The company's foundation is otherwise.

Commercial contracts were not of great importance in the past, as business was simpler, and deals were made with promises and verbal agreements in the presence of two witnesses that the court might need later in the event of disagreements or problems.

In order to establish a company and succeed in competing in the market, it must follow many of the commercial laws and regulations adopted in the country, which requires that you contract with a Saudi lawyer specialized in this field who meets your legal requirements and provides you with ideal solutions to lawsuits and disputes, if they arise, through his experience and previous practices.

Businessmen also play an important role in stimulating the spirit of competition, when they establish new businesses and present creative ideas to the market. This competition leads to lower prices, improved quality of products and services, and increased productivity, which benefits consumers and society in general.

What is the definition of joint stock companies in Saudi Arabia? Companies in the Kingdom of Saudi Arabia, according to what was explained in Article Two of the new Saudi Companies Law, are a legal economic entity. These companies are established in Saudi Arabia either based on a contract of incorporation or a bylaw under which two or more people commit to each contributing to a profit-oriented project. By offering a share of money or work, or both, to share the profit or loss resulting from this project.

The Kingdom of Saudi Arabia is one of the most important emerging markets in the world, as the Saudi economy is characterized by diversity and strength, and it is considered the owner of the largest oil reserves in the world.