Under Article 4 of the Saudi Companies Law (Royal Decree No. M/132 of 2022), a company incorporated in Saudi Arabia must take one of the following forms: a General Partnership, Limited Partnership, Joint-Stock Company, Simplified Joint-Stock Company, or Limited Liability Company (LLC). Each form has different liability, ownership, and governance structures suited to different business needs.
For most expats setting up small to medium businesses, the Limited Liability Company (LLC) or the Simplified Joint-Stock Company are the most practical choices, as they offer liability protection and relatively straightforward incorporation procedures. The simplified joint-stock company is particularly useful for startups and entrepreneurs.
Regardless of the form chosen, Article 3 confirms that any company incorporated under this law automatically acquires Saudi nationality and must maintain its headquarters within the Kingdom. You should consult a licensed Saudi legal advisor to determine which structure best fits your business activity and investment requirements, especially given foreign ownership regulations that may apply to your specific sector.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Saudi Arabia.