Saudi Companies Law
Practical Points for Limited Liability and Joint Stock Companies (2025)

A simplified guide to the key practical requirements for governance, corporate decisions, records, and profit distribution.

Key Points

• Define the powers of the manager or board of directors.

• Document all delegations through official resolutions and minutes.

• General meetings and resolutions

  • Proper invitation procedures

  • Quorum requirements

  • Accurate minutes

  • Filing where required

• Corporate records

  • Partners or shareholders register

  • Resolutions register

  • Register of material contracts

• Profit distribution and reserves

  • In accordance with the law

  • In line with the articles of association or bylaws

Simplified Governance for Small and Medium Enterprises

• Authority matrix or powers charter.

• Conflict of interest policy.

• Simplified audit or review committee.

• Disclosure of contracts with related parties.

When to Seek Legal Advice

• Capital increase or reduction.

• Company conversion or merger.

• Entry of a new investor.

Disclaimer

Each entity has its own circumstances.
Consult your legal advisor before implementing any legal changes.