Explore our New Companies Law Series Below: About Saudi Arabia’s New Companies Law The new Companies Law of 1443 H. (Law) in Saudi Arabia became effective last month and companies will be required to change their constitutional documents (Articles of Association, Articles of Incorporation). While the new law has placed proper safeguards to protect the interests of all stakeholders, at the same time, it has enabled businesses and industries to structure their entities in the manner that suits their needs.  The Law prescribes minimum requirements, yet it allows the partners and shareholders to adopt higher thresholds if they deem those percentages appropriate. Companies will be required to change their constitutional documents (Articles of Association, Articles of Incorporation) as several Articles in the

Explore our New Companies Law Series Below: Provisions for LLC’s under the New Companies Law The new Companies Law of 1443 H. (Law) in Saudi Arabia became effective last month and companies will be required to change their constitutional documents (Articles of Association, Articles of Incorporation). This note highlights major changes and new provisions concerning the limited liability company (LLC), which is the most common form of company in Saudi Arabia: Family Charter / Partners’ Agreement: The possibility to include family charter and partners’ agreements in the Articles of Incorporation (AoI) provides added security and assurance to partners in regard of fulfilment of obligations, smooth management, and transition.1 Single Person LLCs: Unlike the old Law, there are no provisions in