Corporate Law & Company Formation in Saudi Arabia
We form, structure, and govern companies in Saudi Arabia — from a foreign investor's first entity to shareholders' agreements, governance, and M&A — under the Companies Law (Royal Decree M/132 of 1443H). In most sectors a foreign investor can now own 100% of a Saudi company with MISA registration and no local partner; our job is to make the entry clean and the structure durable.
The legal landscape
Opening the economy to foreign capital is the core of Vision 2030, and the corporate framework was rebuilt to serve it: the Companies Law — in force since December 2022 — unified the rules for commercial, professional, non-profit, and family companies, alongside the codified Civil Transactions Law (Royal Decree M/191 of 1444H) and a modernized Commercial Register. The practical sequence for a foreign investor: complete MISA registration — registration replaced the foreign-investment license under the Investment Law in force since February 2025 — then choose the vehicle: usually a limited liability company (LLC), a joint stock company (JSC) for larger or capital-raising ventures, a branch with activity restrictions, or the Regional Headquarters (RHQ) route — then commercial registration and post-incorporation steps. The activity drives the structure: many sectors permit full foreign ownership, some remain restricted. Entry strategy, investor protections, and incentives sit with our foreign investment practice.
Who we act for
Foreign investors entering the Kingdom and choosing their first structure; founders and joint-venture partners who need the shareholders’ agreement written before the honeymoon ends; family businesses formalizing governance under the new framework; and buyers and sellers in M&A who need the corporate record to survive diligence.
What we do
- Formation and post-incorporation — MISA registration, entity selection, incorporation, and the steps that actually make the company operational, with entry strategy through our foreign investment practice.
- Shareholders’ agreements and governance — share classes, reserved matters, deadlock, exit — the clauses that decide who controls what when interests diverge.
- M&A and restructuring — acquisitions, disposals, and reorganizations, with workforce aspects handled through our employment practice.
- Board and compliance — director duties, corporate-secretarial discipline, and Companies Law compliance.
- Joint ventures and shareholder disputes — structuring the venture, and acting when it fractures.
How an engagement runs
We map the activity to the licensing and ownership rules; recommend the structure; execute the formation or transaction end to end; and stay on as company counsel — amendments, governance, and the next deal.
Why Temairik for corporate work
Market entry is never only corporate. Licensing touches employment quotas, contracts, IP, and data compliance from day one — and because those practices sit in the same firm, the structure we build anticipates them from the start.
Entering the Saudi market, or restructuring what you’ve built? Discuss your matter with our corporate team →
Related reading: MISA and 100% foreign ownership · LLC vs JSC vs branch · shareholders’ agreements.
Frequently asked questions
Can a foreigner own 100% of a company in Saudi Arabia?
In most sectors, yes — with MISA registration and no local partner required. Some activities remain restricted, so ownership depends on the sector.
How do I set up a company in Saudi Arabia as a foreign investor?
Complete MISA registration, choose the entity type (usually an LLC), then complete commercial registration and the post-incorporation steps.
Should I form an LLC or a joint stock company?
An LLC suits most ventures; a JSC suits larger, capital-raising, or listed businesses. The choice turns on ownership, fundraising, and governance needs.
What is MISA registration?
Registration with the Ministry of Investment — which replaced the foreign-investment license under the Investment Law in force since February 2025 — enabling a foreign investor to own and operate a business in the Kingdom.
What law governs companies in Saudi Arabia?
The Companies Law (Royal Decree M/132 of 1443H), in force since December 2022, which unified the framework for commercial, professional, non-profit, and family companies.
Do I need a shareholders' agreement if the bylaws exist?
The bylaws are the public constitution; the shareholders' agreement is where control, exit, and deadlock are actually decided. Ventures with more than one owner need both, aligned.
Tell us about your matter.
A few sentences are enough. We respond within one business day. Please leave out confidential details at this stage.