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ARTICLE · 30 SEPTEMBER 2016

Saudi Arabia Update – September 2016

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As per the new Companies Law that came into effect on 2 May 2016 and which we have described in previous updates, single owner LLCs may be formed...

Saudi ArabiaCorporate/Commercial Law
Amgad Husein
Amgad Husein
Anas Akel
Anas Akel
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Legal developments

Single owner LLCs – SAGIA cooperation

As per the new Companies Law that came into effect on 2 May 2016 and which we have described in previous  updates, single owner LLCs may be formed – whereas previously a minimum of two shareholders was required.

Even so, the Saudi Arabian General Investment Authority (SAGIA) has refused to license or otherwise allow foreign investors to establish single owner LLCs. SAGIA representatives have informed us that they have not received instructions from leadership to begin doing so.

In an important update, SAGIA released an email message this month notifying foreign investors that SAGIA now intends to begin complying with the new Companies Law and allow foreign investors to establish single owner LLCs.

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