A partnership company is a company which comprises two or more natural persons, who shall be jointly liable for the company’s obligations to the full extent in all their properties
Limited Partnership Company
The limited partnership company is a company consisting of two categories of partners :
- Full partners and they are those who manage the company and who are jointly responsible for its liabilities in their private properties
- Silent partners and they are those who contribute to the capital of the company without being responsible for the liabilities of the company except to the extent of the amount they submitted to the company or what they undertook to pay to the company.
Limited Liability Company
A limited liability company is the company formed by one or more persons, but not exceeding fifty persons.
The liability of any partner shall be limited to his share in the capital, and that the partners’ shares must not be tradable securities
Public Shareholding Company
A public shareholding company is every company which its capital is divided into negotiable shares and with equal value, and the shareholder shall be liable only within the extent of his equity participation
The capital of the public shareholding company shall not be less than ten million Riyals. The establishment of the public shareholding company shall be issued by a decision from the Minister
Private Shareholding Company
A number of founders not less than five persons may establish among themselves a private shareholding company, the shares of which shall not be floated for public underwriting, and they may underwrite the whole shares. The capital of the company shall be not less than two million Riyals
Except the provisions of public underwriting, all the provisions mentioned in the Commercial Companies Law regarding public shareholding companies shall be applicable to private shareholding companies
Limited Partnership with Shares Company
A Limited Partnership With Shares Company is a company comprising two groups. One of them includes one or more partners jointly liable for the debts of the company in all of their assets. The other group consists of one or more partners who are not liable for the debts of the company except to the extent of their shares in the capital. The company’s capital shall be not less than one million Riyals, fully paid at the time of incorporation.
Underwriting in the shares of Limited partnership with shares company shall be made according to the rules and provisions of underwriting in public shareholding companies.