The new Companies Law defines five main company forms, selected by the founder based on the nature of their activity and the extent of their liability.
- General Partnership: Partners with joint and several liability for all company debts using their personal assets.
- Joint Stock Company: Capital divided into tradable shares, with limited liability up to the value of the shares.
- Simple Limited Partnership: Combines general partners who manage the company and limited partners whose liability is restricted to their capital contributions.
- Limited Liability Company: The most common form; features a limited number of partners and liability restricted to their capital shares.
- Simple Joint Stock Company: A flexible structure targeting startups and family businesses, featuring simplified incorporation procedures.
Legal Reference: Saudi New Companies Law
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