The Saudi Arabia company law recognized four types of business
entities: the joint stock company, the limited liability company
(LLC), the partnership as well as the
branch of a foreign company. For overseas investors to qualify as a
shareholderin Saudi Arabia, the expat shareholder or entity must
obtain a foreign capital investment license granted by the Saudi
Arabia General Investment Authority
(SAGIA), which in practice is
infrequently issued by this authority. Hence, practically, it is
usually recommended that the foreign entity either register a
branch of a company incorporated in any of the Gulf Co-operation
Council (GCC) since they are exempt from
licensing requirements, or for the foreign entity to sign an agency
agreement with a local partner.
