The New Saudi Companies Law (نظام الشركات الجديد), enacted by the Ministry of Commerce (MC) and the Ministry of Investment (MISA), modernized corporate governance and introduced flexible corporate vehicles for domestic and international investors in Saudi Arabia.
| Entity Type | Minimum Shareholders | Minimum Statutory Capital | Foreign Ownership (MISA) | Management Structure |
|---|---|---|---|---|
| Limited Liability Company (LLC / ذ.م.م) | 1 shareholder (Single-Member LLC allowed) | No statutory minimum (typically SAR 10,000–500,000) | 100% Foreign Ownership Permitted | General Manager or Board of Managers |
| Simplified Joint Stock Company (SJC / مساهمة مبسطة) | 1 shareholder | No minimum statutory capital | 100% Foreign Ownership Permitted | President or Board of Directors (No mandatory GM) |
| Joint Stock Company (JSC / مساهمة) | 1 shareholder | SAR 500,000 minimum capital | Permitted under MISA criteria | Board of Directors (minimum 3 members) |
| Foreign Company Branch (فرع شركة أجنبية) | Parent foreign entity | No separate statutory capital required | 100% Owned by Parent Corporation | General Manager via Power of Attorney |
Governing Body: Ministry of Commerce (MC)
Foreign Investment Portal: Ministry of Investment (MISA Invest Saudi)