First: Determine the appropriate type of company for the targeted business There are several legal forms available for establishing a company in Saudi Arabia, each of which has its own advantages and disadvantages. You must choose the form that suits the nature of your activity, the size of your capital, and the number of your partners. Note that the most prominent types of companies in Saudi Arabia are: Limited Liability Company: It is the most common form among investors, as it consists of one or more people who share the capital, profits and losses in specific proportions. The number of partners does not exceed 50 people. The responsibility of each partner is limited to the value of his share in the capital, and he is not permitted to dispose of... his share except with the approval of the remaining partners, and there is no minimum capital limit for the company. Joint stock company: It is a company consisting of at least five people who contribute to capital defined by shares called shares, and it takes a legal form independent of its partners. The liability of each partner is limited to the value of his share in the capital, and he may dispose of his share freely, based on the new system. The minimum capital of a joint-stock company has been reduced from 500,000 Saudi riyals to 100,000 Saudi riyals, and the company name must include the word “joint stock” or its abbreviation. Joint companies: They are companies consisting of two or more persons who carry out a commercial activity in a joint name. They bear responsibility for the company's creditors with all their private property. There is no requirement to specify a specific capital for these companies, and the name of the company must include the name of all partners or the name of one of them plus the word “and his partners” or “and his children.” Simple recommendation companies: They are companies consisting of at least one person who manages the company in his name (the managing partner). And at least one other person invests in the capital, without his name appearing (the investing partner). The managing partner bears responsibility to the company's creditors for all of his own property, while the investing partner's liability is limited to the value of his share in the capital. The name of the company must include the name of the managing partner only, and the investing partner may not interfere in the management of the company or represent it before others. Second: Obtaining the necessary documents and licenses After choosing the type of company that is appropriate for you, you must prepare the necessary documents and licenses to establish your company in Saudi Arabia. These documents vary depending on the type of company and the nature of its activity, but in general they include: Application to establish a company: It is an application submitted to the Ministry of Commerce and Investment to establish a company in Saudi Arabia. This request must contain the founders’ data, the name of the company, its purpose and address, the value of its capital, the method of its distribution, and the name of the manager or managers and their powers. Articles of Association: It is a contract concluded between the founders to determine the terms and conditions of establishing and managing the company and resolving its disputes. This contract must contain the same data included in the establishment application. In addition to the voting system, financial statements, rights and obligations of each partner. Third: Conditions for opening a foreign company in Saudi Arabia: Existing foreign companies already practice their commercial activity within Saudi Arabia by establishing a company, a branch of the company, or any other legal form that they deem appropriate for the nature of their commercial activity in accordance with the investment system. The company must fulfill the following conditions to establish a branch in the Kingdom: The approval of the parent company's board of directors is required to establish a new company branch in Saudi Arabia. The approval is certified according to the applicable legal procedures based on international agreements between the two countries. It is necessary to provide a certified copy of the parent company’s articles of incorporation, specifying the start and end dates of the fiscal year of the company to be established in the Kingdom, and attaching the financial statements for one year. Obtaining the approval of the Ministry of Investment, obtaining the investment license for the company, and there is no objection to changing the company’s name in accordance with the regulations in force in the Kingdom. If a foreigner wishes to establish a company in Saudi Arabia, he must hold a premium residency permit, or own a company outside the Kingdom. There is counting