The introduction of the new law addresses some of the perceived weaknesses of the old law and should be welcomed by both domestic and foreign. The new ksa companies law in focus next month the old saudi companies law the old law1 will be repealed and a longawaited. Implementing regulations clarifying the operation and effect of. In a related development, meteb 2015 argues that the corporate. The announcement came after the kingdom considering the various factors and issues faced by both domestic and foreign companies. This right has been introduced in article 3 of the saudi labor code, which states that work is the right of every citizen. In each case, the arabic version is the governing text. Saudi companies under the new law, the capital market authority, the regulator for listed joint stock.
The saudi arabian ministry of commerce and industry moci announced on november 9, 2015 that the new saudi companies law ncl shall come into force 150 days from its publication in the saudi official gazette. Definition of a company a company is a corporation an artificial person created by law. Its interpretation by judges in saudi arabia is influenced by the medieval texts of the literalist hanbali school of islamic jurisprudence. This will naturally have a significant impact on investors, their relationships, current investments and potential transactions. M6 dated 220385h and its corresponding cabinet decision. Llc with a single shareholder can be incorporated subject to the following. Innovative changes address company and investor concernsas saudi arabia moves to modernize its corporate legal regime. Limited liability companies llcs joint stock companies jscs. We, khalifa bin zayed al nahyan, president of the united arab emirates, pursuant to the perusal of the constitution. Saudi arabia transitioned to a new tripscompliant patent law in 2004. Qatar companies commercial law update qatar companies commercial law update know the rules, know your way ahead. Regulatory rules and procedures issued pursuant to new. Top 100 saudi arabia companies riyadh jeddah dammam.
Business regulations the official portal of the uae. The new law was published on 4 december 2015 and stated that its provisions will take effect 150 days after such publication, i. As well as the approval of the new companies law 1437h2015g the ncl, which will be of interest to local enterprises and foreign. Listed companies listed companies submit the quarter and annual accounts to the saudi stock exchange tadawul, the capital market.
Shortly after the announcement of the saudi vision 2030, the saudi council of ministers approved rules to implement this change in june 2016. Egypts strategic location offers companies a platform for their commercial activities into the middle east and africa. Here in this thread i am sharing lecture notes in ebook format pdf for the subject company law for llb and ba. The sources of sharia also include islamic scholarly consensus developed after muhammads death. The new saudi arabian companies law 1437h2015g the new law will come into force on 2 may 2016, replacing the previous law from 1965 and bringing with it some noteworthy changes to both limited liability companies and joint stock companies. Labor code in saudi arabia has granted the right to work for all citizens, both men and women. The new companies law was enacted by royal decree no m3 dated 2811437h i. The english version of the following documents is for guidance only. The companies law provides the regulatory framework for the formation and governance of the different forms of business entities available in saudi arabia, which include general partnerships, limited partnerships, limited liability companies and joint stock companies. July 29, 2015 consideration of the staff report that concluded the article iv consultation with saudi arabia.
It will provide existing companies with a period of one. Its provisions will significantly impact the governance of saudi companies, as well as how new companies will be established. The new law will come into effect 150 days from the date of. Links provide access to primary documents, legal commentary, and general government information about specific jurisdictions and topics. More than a decade in the making, the new saudi companies law will come into force on 2 may 2016. It has been announced by the ministry of labour that these will be implemented six months after the date of its publication and therefore it is expected that these will be implemented on the 24 october 2015.
Persons subject to taxation a a resident capital company with respect to shares of nonsaudi partners. Limited liability companies llc public shareholding companies p. The saudi government recently unveiled a comprehensive update to the saudi companies law that has been some time in the making. The legal system of saudi arabia is based on sharia, islamic law derived from the quran and the sunnah the traditions of the islamic prophet muhammad. The new saudi companies law and its implications for ksa companies 1 the new law also follows the enactment of the new united arab emirates commercial companies law federal law no. New saudi companies law issue limited liability companies. Hfw the new saudi companies law and its implications for ksa.
Based on corporate law they have to submit their financial statements annually to the ministry of commerce and industry mci. On 9 november 2015, the ministry of commerce and industrial moci announced that the new saudi companies law ncl shall come into force 150 days from its publication in the saudi official gazette. Formation and operation of business firms and companies is regulated by companies law promulgated by royal decree no. Business regulations related to mainland companies. Pdf saudi arabia regulations on corporate governance. M31437 dated 28011437 h, corresponding to 10112015, saudi arabia has adopted a new companies law regime the new companies law completely replacing the existing regulations for companies enacted by saudi arabia royal decree no. The amendments to the saudi labour royal decree no. The new law was published on 4 december 2015 and stated that. As well as the approval of the new companies law 1437h2015g the ncl, which will be of interest to local enterprises and foreign investors alike, this year has seen the enactment of rules that permit qualifying foreign financial institutions to trade in shares. New saudi arabian companies law insights dla piper.
New saudi companies law issue limited liability companies llcs joint stock companies jscs number of shareholders generally. The official site for the saudi ministry of commerce, to make an outstanding ranking in the commerce sectors in a fair and motivating. Companies and partnerships compared a a company can be. Jscs now require a minimum of only two shareholders down.
New saudi companies law accumulated losses and risk of statutory dissolution by sami allouzi and noor alfawzan on march 31, 2016 posted in new companies law, saudi arabia for the past few decades, the obligations of companies with losses reaching 50% or more of their share capital has been a topic of high debate in the kingdom of saudi. Regulatory rules and procedures issued pursuant to the companies law relating to listed joint stock. Kingdom of saudi arabia capital market authority regulatory rules and procedures issued pursuant to the companies law relating to listed joint stock companies english translation of the official arabic text issued by the board of the capital market authority pursuant to resolution no. Some text and formatting may not have been recognized. No one else may exercise such right unless the conditions provided for in this law are fulfilled. Six arab world ecommerce companies to watch in 2015. Saudi labour law 5 article 10 all periods and schedules provided for in this law shall be according to hegira calendar, unless otherwise stated in the work contract or the work organization regulation. The new saudi companies law and its implications for ksa companies, january 2016 on 9 november 2015, the kingdom of saudi arabias council of ministers approved the long awaited new companies law. If the employer assigns all or part of his original business to a natural or. The new companies law completely replaces the old companies law. Commerce and industry moci will continue as the primary regulator of saudi companies, although the. Foreign investment act and executive rules 2000 plus. Next month the old saudi companies law the old law1 will be repealed and a long.
The new saudi companies law came into effect on 2nd may 2016 the effective date. M46 of 05061436 were published in the official gazette no. This guide to law online saudi arabia contains a selection of saudi arabian legal, juridical, and governmental sources accessible through the internet. In 2015 saudi arabia enacted a new companies law for the first time in fifty years. Saudi arabia 16 december 2015 new saudi companies law approved 2015 has seen a number of interesting legal developments in saudi arabia, particularly from a foreign investment perspective. Income tax rates for oil and hydrocarbon producing companies are as detailed below. Regulatory rules and procedures issued pursuant to the. This will naturally have a significant impact on investors, their relationships, current investments and potential transaction.
Qatar companies commercial law update 3 introduction and highlights. New saudi companies law accumulated losses and risk of. The new companies law was enacted by royal decree no m3 dated 281 1437h i. The ministry of commerce and industrial moci announced on 9 november 2015 about new company lawncl, which may be implemented after 150 days from its publication in the saudi official gazette um al qura. On monday 9 november 2015, the ministry of commerce and industry moci, announced that the new saudi companies law ncl shall come into force 150 days from its publication in the saudi official gazette. Saudi arabia issues new regulations for companies, altering regulatory landscape. A company thus has legal rights and obligations in the same way that a natural person does. The ncl is expected to have a significant impact on investors, their relationships, current investments and future business transactions.