The Saudi Ministry of Commerce explained that the Professional Companies System, which was approved by the Council of Ministers on 1441 Muharram, aims to encourage practitioners of liberal professions to establish professional companies in Saudi Arabia, provide flexibility and freedom of choice between company forms, and facilitate their financing with the aim of expanding the growth of professional companies.
The Ministry indicated that the new Professional Companies System allows the opening of professional companies in Saudi Arabia that practice more than one profession according to specific controls that ensure governance, and allows the professional company to take the form of a simple limited partnership, a limited liability company, a joint stock company, or a general partnership. In addition, the system allows the participation or contribution of non-professional investors in professional companies, and the establishment of a professional limited liability company by one person to practice one or more liberal professions.
The system allows partners or shareholders in a professional company to convert it to another form of company after fulfilling the conditions and controls stipulated by the system or its regulations.
The Ministry is responsible for licensing the establishment of a professional company in accordance with the procedures and controls stipulated by the system and its regulations, taking into account the provisions of the Foreign Investment System.
It is hoped that the Professional Companies System will contribute to enhancing the confidence of those dealing with professional companies, in addition to enabling practitioners to lead competitive professional companies locally and internationally, in addition to increasing and improving employment opportunities in the professional services sector, arranging the rights and duties of partners and shareholders in professional companies, enhancing their business and achieving growth. The provisions of the Companies System apply to the professional company in a manner that does not conflict with its nature.