What are the different business forms that are allowed for foreign companies in Saudi Arabia?
We are planning to establish a company in Riyadh and we are from the United States. We would like to know what type of company can we establish.
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You can start a partnership, an LLC, or a corporation. But unless the law has changed recently, you have to have a Saudi partner. And you really need a Saudi counsel to make sure you don’t run afoul of the law. There are Western business practices that are not permitted, such as lending money at interest.
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Foreigners wishing to conduct business in Saudi Arabia may do so in one of the following ways:
By establishing an incorporated entity
By entering into a partnership
By establishing a branch office
By establishing a representative office
By engaging a service agent
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