Business Advisory Services In Saudi Arabia
Understanding how government documentation in Saudi Arabia works is really important to set up a new business here, Dont Worry Jadwa, the best Business Advisory Services In Saudi Arabia is here to help you. The CSR is an absolute monarchy and has no legally binding written constitution. However, in 1992, the basic law of the KSA adopted a royal decree.
The Basic Law outlines the responsibilities and processes of governing institutions, but it is not specific enough to consider it a constitution.
Accordingly, the legal system of the KSA is based on Sharia, Islamic law derived from the Qur’an and the Sunnah (tradition of the Islamic Prophet Mohammed).
His interpretation by the judges of the KSA is influenced by the medieval texts of Islamic jurisprudence. Uniquely in the Muslim world, Sharia was accepted by the KSA in an undifferentiated form. This and the lack of judicial precedent led to uncertainty about the scope and content of the country’s laws.
Therefore, the government announced its intention to codify Shariah in 2010, but this has yet to be done. Shari’a has also been supplemented by provisions issued by the royal decree relating to contemporary issues such as intellectual property and corporate law.
Nevertheless, Sharia remains the main source of law, especially in areas such as criminal, family, commercial and corporate law, and the Qur’an and the Sunnah have been declared constitutional. Royal decrees are another major source of law, but they are referred to as regulations rather than laws to indicate that they are subordinate to Sharia. Royal decrees complement Sharia in areas such as labor, commercial and corporate law. In addition, other forms of legislation (lai’hah) include Royal Orders, Council of Ministers Ordinances, Ministerial Ordinances, and Ministerial Circulars, and are subordinated to the Sharia.
Any Western commercial laws or institutions are adapted and interpreted from the perspective of Sharia law. In addition, traditional tribal law and custom remain important. For example, judges will carry out tribal customs concerning marriage and divorce.
Procedure for registration of limited liability companies in Saudi Arabia
In order to include 100% Foreign LLC in the KSA, the Investment License and Business Registration (“CR”) must be obtained in accordance with SAGIA and MOCI. The requirements for government documentation in Saudi Arabia are as follows:
- An investment license application form is completed.
- A resolution of the Board of Directors of the Company that declares its desire to invest in the KSA, including the names of the partners, the capital, the percentage of each partner’s contribution, the activity and the appointment of the general manager. Such decision shall be certified by the concerned authorities and the CSA
- Embassy in the country of foreign investors.
- Confirmation of work experience or work experience in the industry that the company wishes to participate in (for example, audited financial statements of a foreign investor over the last 3 years).
- Copies of the CR of the participating companies, certified by the relevant authorities and the KSA Embassy in the foreign investor country.
- A copy of the company charter, certified by the relevant authorities and the KSA Embassy in the foreign investor country.
- Copy of the general manager’s passport.
- Copy of reservation of trade names in case the company wishes to receive the trade name.
- The permit for a law firm has been approved to complete all procedures. This authorization shall be certified by the Embassy of Saudi Arabia or by the investor when entering the KSA under a commercial visa.