The requirements vary depending on the type of company. Generally, they include identifying the shareholders, the commercial activity, the capital, the company’s headquarters, and preparing the Articles of Association in accordance with the regulations in force in the Saudi Arabia. This also includes issuing the Commercial Registration. If the company is foreign, it must be registered as a foreign investment entity before the Ministry of Investment.

The types of companies in Saudi Arabia include:

• Limited Liability Company (LLC)
• Joint Stock Company (unlisted or listed)
• Simplified Joint Stock Company
• General Partnership
• Limited Partnership

The appropriate type is selected based on the nature of the activity and the shareholding or partnership structure, as applicable.

First: Saudi companies / local shareholders
The required documents usually include:

• Identification documents of the shareholders or owners. If a shareholder is a company, its Articles of Association or bylaws must be provided.
• Commercial activity details, selected in accordance with the National Classification of Economic Activities (ISIC 4).
• National Address.
• Additional documents may be required depending on the type of company and the nature of the activity.

Second: Foreign companies
The required documents usually include:

• Commercial Registration of the parent company, attested by the Saudi Embassy or by Apostille in the country of incorporation.
• Articles of Association or bylaws of the company, attested by the Saudi Embassy or by Apostille.
• Identification documents of the shareholders or owners, and the ID(s) of the proposed manager(s), attested by the Saudi Embassy or by Apostille.
• Financial statements for the company’s most recent fiscal year, attested by the Saudi Embassy or by Apostille.
• A shareholders’ resolution approving the establishment of a new entity in Saudi Arabia and appointing the General Manager and defining his/her powers (a draft resolution is prepared by Eyad Reda Law Firm), attested by the Saudi Embassy or by Apostille.
• Commercial activity details, selected in accordance with the National Classification of Economic Activities (ISIC 4).

Additional documents may be required depending on the type of company and the nature of the activity.

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The establishment process goes through several stages, including:

1. Determining the type of company and its activity
2. Preparing and drafting the Articles of Association
3. Completing regulatory requirements with the competent authorities
4. Issuing the Commercial Registration and required licenses

The requirement of a minimum capital depends on the type of company. Some types do not require a minimum capital, while others require a specified capital in accordance with regulations.

Yes. Foreign companies are subject to additional requirements, including obtaining the necessary licenses from the competent authorities and foreign investment approvals.

Yes. The firm provides services for drafting internal company policies and regulations in line with the company’s vision, applicable regulations, and corporate governance requirements in Saudi Arabia.

The requirements for liquidating a company include a resolution by the shareholders or the competent authority, appointment of a liquidator, inventory of the company’s assets and liabilities, and compliance with the relevant regulatory procedures depending on the type of liquidation.

Declaring bankruptcy requires meeting statutory conditions, including the company’s inability to pay its debts and satisfying the requirements under either the Companies Law or the Bankruptcy Law, and submitting an application in accordance with the applicable Bankruptcy Law in the Kingdom where required.

The steps include submitting the application to the competent authority, reviewing the company’s financial position, selecting the appropriate procedure (Protective Settlement, Financial Restructuring, or Liquidation), and proceeding in accordance with the provisions of the Bankruptcy Law or the Companies Law.

Yes. The firm provides comprehensive legal services in mergers and acquisitions, including legal due diligence, negotiation, and drafting of agreements.

Listing requires compliance with Capital Market Authority regulations, preparation of the required documents, fulfillment of governance and disclosure requirements, and obtaining the necessary regulatory approvals.

Yes. The firm provides specialized corporate governance advisory services, including drafting regulations and policies and organizing the relationship between management and shareholders.

Yes. The firm provides specialized legal services in drafting and reviewing public–private partnership agreements.

They are legal agreements that regulate the relationship between investors and the company, defining investment terms, rights, obligations, and mechanisms for converting the investment into shares or equity

A SAFE (Simple Agreement for Future Equity) is an investment instrument commonly used in early-stage startups, granting the investor the right to receive future shares under specific conditions without determining a current company valuation.

A Subscription Agreement is an agreement that regulates an investor’s subscription to company shares in exchange for an investment amount, specifying the number of shares, their value, and the rights and obligations of the parties.

Yes. Investment agreements can be customized to suit the nature of the transaction, the type of investor, and the company’s structure, while taking into account relevant regulations.

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Some investment agreements may require regulatory approvals or specific disclosures, depending on the type of company and the nature of the investment.

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Yes. The firm’s services include legal support in negotiations and drafting investment terms in a manner that protects the rights of the company and clients.

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Legal due diligence reports are specialized legal reports aimed at studying and evaluating the regulatory and legal status of a company or transaction, enabling parties to make informed investment or commercial decisions.

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Such reports are typically prepared in cases of:

• Acquisitions or mergers
• Entry of new investors
• Funding rounds
• Restructuring
• Initial public offerings

Depending on the agreed scope of work, the report may include a review of:

• The company’s legal structure
• Company contracts and obligations
• Regulatory status and compliance
• Ongoing disputes and litigation
• Intellectual property rights
• Potential legal risks

Yes. Eyad Reda Law Firm provides due diligence services for both startups and established companies.

Yes. A limited-scope due diligence report can be prepared focusing on specific aspects, such as contracts or disputes only.

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The preparation period depends on the size of the company, the number of documents, and the scope of the report. The timeline is determined after receiving the request and reviewing the requirements.