A Professional Company is established by individuals or entities legally licensed to practice specific professions, such as law, medicine, or accounting. This type of company is designed for professionals who wish to operate under a formal business structure, providing their services while maintaining a level of legal protection.
A Joint-Stock Company (JSC) is ideal for larger businesses looking to raise capital from investors. It can be founded by one or more individuals or legal entities, with its capital divided into shares that can be publicly traded. The company alone is responsible for its debts, while shareholders' liability is limited to the amount of their investment. This structure is perfect for businesses aiming to expand significantly and attract substantial investments, making it a popular choice for foreign investors in Saudi Arabia.
The Simplified Joint-Stock Company offers similar benefits to a traditional JSC but with more flexibility in governance and fewer regulatory requirements. This structure is particularly suitable for startups and smaller enterprises that want the advantages of a joint-stock company without the complexity. It allows businesses to operate more nimbly while still accessing capital markets, making it an attractive option for entrepreneurs considering business setup in Saudi Arabia.
A Partnership Company is formed by two or more individuals who are jointly and personally liable for the company's debts. This type of entity is best for small businesses where partners are willing to share both management responsibilities and financial risks. In a partnership, all partners are considered merchants and actively participate in the company’s operations, which is ideal for those looking for a hands-on approach to starting a business in Saudi Arabia.
A Simple Limited Partnership consists of two groups of partners: general partners, who are fully liable for the company’s debts, and limited partners, whose liability is limited to their share in the capital. This structure allows investors to contribute capital without being involved in day-to-day management, which can be beneficial for those looking to invest in company registration in Saudi Arabia without taking on full operational responsibilities.
A Limited Liability Company (LLC) is one of the most favored structures for both local entrepreneurs and foreign investors due to its flexibility and limited liability. An LLC can be established by one or more individuals or entities, and the liability of each partner is restricted to their contribution to the company's capital. This structure provides a balance between operational flexibility and legal protection, making LLC company formation in Saudi Arabia a popular choice for those looking to minimize personal risk.
A Holding Company can be a joint-stock company, a simplified joint-stock company, or an LLC that establishes or owns shares in other companies, making them subsidiaries. This structure is ideal for businesses looking to manage multiple entities under a central corporate umbrella, providing strategic oversight and financial control across various sectors.
A Branch of a Foreign Company allows an existing international business to expand its operations into Saudi Arabia while retaining its brand identity. This structure is suitable for businesses that want to establish a presence in Saudi Arabia without forming a new entity. The branch operates under the regulations applicable to a joint-stock company, simplified joint-stock company, or LLC. Foreign business registration in Saudi Arabia through a branch is a great way to tap into the Saudi market while maintaining a connection to the parent company.