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Limited Liability Company

An LLC (Limited Liability Company) in Saudi Arabia is a legal business structure that offers limited liability to its owners (shareholders) and combines features of a corporation and a partnership. It provides flexibility in management and is a commonly chosen entity for businesses in the Kingdom. 

How does the flexibility contribute to the appeal of LLCs in Saudi Arabia?

An LLC combines elements of both corporations and partnerships, offering a high degree of flexibility in its management structure. Owners can tailor the company’s governance, profit distribution, and decision- making processes to suit their needs and preferences. LLC in Saudi Arabia is an attractive choice for entrepreneurs and investors seeking the security of limited liability, coupled with the versatility to structure and manage their business according to their unique requirements.

Limited Liability Company Saudi
What are the details about the necessary ownership and capital prerequisites for a Saudi-based company?
  • While an LLC is not obliged to form a board of directors, some companies opt to establish one and incorporate it into their Memorandum and Articles of Association.
  • There are no restrictions on the proportion of foreign ownership in an LLC. Each shareholder’s or partner’s personal liability is limited to their individual contribution to the share capital.
  • As there is no specific minimum capital requirement stipulated by law, the required paid-up capital will differ depending on the nature of the business and the ownership structure.
  • The Ministry of Investment of Saudi Arabia (MISA), previously known as the Saudi Arabia General Investment Authority (SAGIA), will determine the capital amount during the application process.
What is the procedure for establishing a Limited Liability Company (LLC) in Saudi Arabia?
  • The process of establishing a Limited Liability Company (LLC) in Saudi Arabia begins by initiating the incorporation at the Ministry of Investment.
  • Once all the necessary legal documents for the company are finalized, the Commercial Registration (CR) certificate is granted. Following this, the LLC must undertake all required government registrations and obtain external approvals in Saudi Arabia.
  • The post-incorporation phase encompasses multiple government filings and registrations, which can span several weeks or even months before the LLC becomes fully operational.

Why Choose Us? 

Helpline Group is your reputable business consulting agency in Saudi Arabia that facilitates the establishment of limited liability companies (LLCs) for foreign businesses looking to invest in the country. We provide comprehensive support and consulting throughout the process of forming an LLC, ensuring compliance with local regulations and requirements.