المدونة

First of all, the concept of a company is that it is an agreement whereby two or more parties undertake to contribute to a project, whether by providing a share of money or work, with the aim of participating in the profit or loss that arises from this project. As for the partnership contract, it is a contract that obligates two or more parties to participate in a project. By providing a share of the money or work, and sharing the profit or loss arising from the project, the company is considered a legal person once it is formed.

There is no doubt that the new companies’ system and its executive regulations are distinguished from the previous companies’ regulations, in terms of setting and facilitating all general controls for establishing companies in Saudi Arabia, in addition to its inclusion of many types of companies that were easily established before.

There are many important legal rules and procedures that the new Saudi corporate law left clarified to its executive regulations, and as soon as those executive regulations were announced, we wanted to highlight in this article all the legal features, procedures and rules that they included and that will be implemented from the date of entry into force of the new corporate law.

Companies are considered one of the most important economic tools for individuals in the Kingdom of Saudi Arabia, where there was and still is interest in them and their development due to the foundations they provide for the development of the Saudi economy. One of the most important forms of investment that is frequently dealt with in the Kingdom is the establishment of companies in Saudi Arabia.

Family businesses are considered one of the most important economic entities that are established in the Kingdom of Saudi Arabia, as they help the family entity to exercise the supervisory, administrative and financial role for family projects, and although family businesses are the oldest and most widespread model in the world, they are characterized by a wide spread in the Kingdom of Saudi Arabia It is one of the best pillars of the economy in the Kingdom

The holding company in the Kingdom of Saudi Arabia is considered one of the most important types of companies included in the new Saudi Companies Law issued during this current year, which came within the advanced legislative packages issued by the Kingdom to strengthen the Saudi economy and to attract and attract more investments to its land. One of the distinguished forms established in the Kingdom

During the current year 2022 AD, the Kingdom of Saudi Arabia issued many very important regulations and legislations, in addition to developing many other systems in line with achieving the Kingdom's vision for the year 2030 AD, in terms of financial inclusion, sustainability, and diversification of sources of income more than it was, and among those issued regulations is the new Saudi Companies Law Which was approved by Cabinet Resolution No. 678 dated 11/29/1443 AH

The Kingdom of Saudi Arabia is working hard to be the largest and most attractive destination for major investments, especially for major international companies that want to have branches in the Middle East. In the United Arab Emirates, and it is worth noting that the Emirate of Dubai has been without a competitor for many years in terms of attracting foreign investments, especially international foreign companies that want to establish a regional center for them in the Middle East.

The joint stock company, that company that is characterized by many characteristics that did not exist collectively in any of the other types that the new Saudi corporate system allowed to be established in the Kingdom, so the Saudi joint stock company is one of the best companies that is based on financial consideration, and that company is solely responsible For the debts and obligations incurred by it or arising from its activity. As for the shareholder, the limits of his responsibility are to pay the value of the shares in which he subscribed.

The way through which there are many savings opportunities and the accumulation of large capitals necessary to establish major projects in all different sectors, and it is worth adding that investment through the joint stock company is not limited only to large investors with large capitals, but through it it gives many opportunities to small investors Such as owning shares in the form of shares offered by the company for subscription, and after that they are named shareholders

Such as the joint-stock company, the limited liability company, or companies of persons such as the general partnership and the limited partnership company, those companies that are considered the most important economic legal entities that are established based on a memorandum of association or articles of association under which two or more persons are committed to each of them contributing to a profit-oriented project by providing a share of Money or work or both together to share the profit or loss arising from this project

The Kingdom of Saudi Arabia was keen when issuing the new corporate law to include new types of companies, such as the simplified joint stock company, in addition to other well-known companies, which are the Solidarity Company, the Simple Partnership Company, the Joint Stock Company and the Limited Liability Company.