Explore our New Companies Law Series Below:
- About Saudi Arabia’s New Companies Law
- Provisions for LLCs under the New Companies Law
- New Foreign Investment Guidelines Under New Saudi Arabian Companies Law
- Regulatory Frameworks of Companies Under Saudi Companies Law
- Provisions for Professional Companies under the New Companies Law
- Provisions for Joint Stock Companies Under the New Companies Law
- Provisions for Simplified Joint Stock Companies Under the New Companies Law
- Provisions for Not-For-Profit Companies Under New Companies Law
- Provisions for Debt Instruments & Financing Sukuk Under New Companies Law
- Responsibilities of Managers Under New Companies Law
- Closure of Companies Under New Companies Law
- Simplified Joint Stock Companies versus Limited Liability Companies Under New Law
Provisions for Professional Companies Under New Saudi Arabian Companies Law
The new Companies Law of 1443 H. (Law) in Saudi Arabia became effective in January 2023, and companies are now required to change their constitutional documents (Articles of Association, Articles of Incorporation) accordingly.
This note highlights changes in the Companies Law of 1443 H. concerning the set up and operation of professional companies (free professions) which were earlier governed under a separate Professional Companies Law of 1441 H.
Besides the general provisions of the Companies Law that are applicable to companies engaged in practicing free provisions, and provisions related to the specific company form which the professional company may opt, there are specific conditions that govern professional companies.
As the Professional Companies Law of 1441 H. was promulgated some two and half years ago, there are no significant changes in the provisions related to professional companies in the new Companies Law. Nonetheless, we have highlighted areas of the new Companies Law that affect professional companies below.
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
1 Article 197of Companies Law
2 Article 75(1) (b and c) of Rules of Implementation
3 Article 200(1) of Companies Law
4 Article 202 of Companies Law
5 Article 200 (3) of Companies Law and Article 77 of Rules of Implementation
6 Council of Ministers Decision No: 681 dated 15/11/1438 H. & page (31) of Ministry of Investment Service Manual 9th edition
7 Article 200 (4) of the Company Law and Article 78 of the Rules of Implementation
8 Article 201 of Companies Law and Article 81 of the Rules of Implementation
9 Article 206 of Companies Law
10 Article 203 of Companies Law
11 Article 204 of Companies Law & Article 82 of Rules of Implementation
12 Article 207 of Companies Law and Article 79 of Rules of Implementation
13 Article 209 of Companies Law
14 Article 210 of Companies Law
15 Article 211(2) of Companies Law
16 Article 211(3) of Companies Law