Establishment of Companies Online
Written by: Mahmoud Zidan -Legal Consultant
Establishment of Companies Online In Saudi Arabia
In the past, establishing companies used to require several steps and multiple paths to take, from the conclusion of the articles of association, the notary public’s review, submitting a request to issue the commercial registration and other applicable companies establishment procedures, which take a lot of time and effort; not to mention the auditing of the companies’ articles of association conducted by the companies’ management at the Chamber of Commerce and Investment.
However, after the signing of the Memorandum Of Understanding between the Ministry of Investment and Trade and the Ministry of Justice, which is an extension of the initiatives launched recently to facilitate matters for the pioneers of the commercial and investment sector, especially since certification is now conducted electronically without the need to go to any of the Ministry’s branches, and whereas before this step, those who wished to establish companies had to go to the Notary Public’s Office, in order to certify the contract, now, and under this memorandum, all of the aforementioned steps can be integrally conducted through several IT systems; of which the most important step is the Commercial Register and Corporate Law, the Al-Mowathiqeen System and the Absher System, through the verification of the partners’ identities using the Absher System in order to certify the companies’ articles of association through electronic steps with ease. It should be noted that this step covers Saudi Nationals only; of which, if there is a foreigner or Gulf investor, they will not be covered by this step, but this does not prevent us from seeking to have them included in the next phase. This shows the serious pursuit of the Ministries of Justice and Commerce to improve the business environment, and to enable and facilitate the matters for enterprises, and provide a stimulating environment for investment and investors; as this offers a significantly positive impact on investments and provides ease for investors, which helps in reaching the Kingdom’s ambition to achieve the Saudi Vision 2030.
The contents of these pages are for your general information and public use only, and is subject to adjustment without prior notice. We do not provide any undertakings or guarantees of the accuracy of the contents and information covered in this document and it may contain errors and mistakes. Therefore, we explicitly disclaim any responsibility on our part that may result from any mistake or error to the maximum extent permissible under the law. Your use of the information provided in this document is at your own risk without taking any responsibility on our part. You are solely responsible for ensuring that any information available in this website does meet and comply with your specific requirements.