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 existing constitutional documents may conflict with the provisions in the new Law.
As the new Law has removed several restrictions with a view to provide flexibility to set up, finance, invest, and manage entities, businesses may determine their own specific requirements, priorities, future plans, risk factors, etc. and accordingly amend the provisions in the constitutional documents.
Our team will be running a series of articles covering provisions for the different forms of companies as well as important aspects of the law that may be applicable to them.
Download the New Companies Law Guide
It is imperative for businesses to keep informed about the changes to the Companies Law, and understand the differences between the provisions that apply to different company types. We encourage you to download our PDF guide for further information on the updates to the new Companies law, details about the changes in practice between different company types, and assist you in operating in accordance with the law.
To stay aware of these updates, we encourage you to follow us on social media to be informed of when they are posted. If you wish to discuss any of these changes or any impact this New Law may have on your business, please reach out to us for assistance.
AlGhazzawi & Partners