Under Article 4 of the Saudi Companies Law (Royal Decree No. M/132 of 2022), companies in Saudi Arabia can take one of four main forms: a General Partnership, Limited Partnership, Joint-Stock Company (JSC), or Limited Liability Company (LLC), along with simplified joint-stock companies and other permitted forms. Expats most commonly opt for an LLC or a simplified joint-stock company due to their flexible structures and manageable compliance requirements.
It is important to note that under Article 3, any company incorporated under this Law automatically acquires Saudi nationality and must have its headquarters within the Kingdom. This means that even if all shareholders are foreign nationals, the company itself is considered a Saudi legal entity once registered.
Before choosing a structure, expats should consider factors such as minimum capital requirements, the number of shareholders, and the nature of the business activity. Some sectors also require a Saudi partner or a minimum percentage of Saudi ownership under foreign investment regulations, which operate alongside the Companies Law. Consulting a licensed Saudi legal advisor before incorporation is strongly recommended.
This is general legal information, not legal advice. For advice on your specific situation, consult a lawyer licensed in Saudi Arabia.