This article has been researched and written by Marharyta Skavronska and the team at Creation Business Consultants and has not used AI in generating this article.
The new Companies Law of Saudi Arabia, issued Tuesday 28 June 2022, is a comprehensive set of regulations aimed at modernising the country’s corporate legal framework and attracting foreign investment. The law replaces the previous Companies Law of 2015 and introduces several key changes and improvements to the legal framework for businesses in Saudi Arabia.
The new law, which is in line with the Kingdom’s vision 2030, introduces new changes, allows for greater flexibility, protects the interests of businesses, strengthens the private sector, and follows international best practices.
The new law regulates commercial companies, public benefit companies and professional companies. It allows investors to establish any of the following company types in Saudi Arabia:
- Limited Liability Company (LLC)
- Regional Headquarter (RHQ)
- Joint Stock Company (JSC)
- Branch of a foreign company
- Simplified Closed Joint Stock Companies (SJSC), which is a new type of corporate structures introduced in the Law