The Article of Association Form is a mandatory legal document required for company formation in Saudi Arabia. It must be prepared and submitted during the company registration process with the Ministry of Commerce. This document is essential for both domestic and foreign-owned companies, serving as the constitutional foundation that governs the relationship between shareholders and defines the company's operational framework. The Articles of Association must align with the Saudi Companies Law 2015, comply with Shariah principles, and include specific provisions based on the company type (e.g., Limited Liability Company, Joint Stock Company). The document becomes legally binding once approved by the relevant authorities and registered with the Ministry of Commerce, forming the basis for all future company operations and governance matters.
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1. Introduction and Parties: Names and details of founding shareholders, whether natural or legal persons, including their nationalities, addresses, and identification details
2. Definitions and Interpretation: Key terms used throughout the document and rules for interpretation
3. Company Name: Official company name in Arabic and English, complying with Saudi naming regulations
4. Company Purpose: Detailed description of business activities the company is authorized to conduct
5. Head Office Location: Official registered address and provisions for establishing branches
6. Company Duration: Term of the company's existence and conditions for extension
7. Capital and Shares: Details of company capital, number of shares, nominal value, and share classes
8. Share Transfer Provisions: Rules and procedures governing the transfer of shares
9. Management Structure: Composition of board/managers, appointment procedures, powers, and responsibilities
10. Shareholders' Meetings: Procedures for general and extraordinary meetings, voting rights, and quorum requirements
11. Financial Affairs: Fiscal year, accounts, auditing requirements, and profit distribution
12. Dissolution and Liquidation: Procedures and circumstances for company dissolution and liquidation process
1. Preemptive Rights: Used when shareholders want specific rights to purchase new shares before offering to outside investors
2. Tag-Along Rights: Include when minority shareholders need protection in case of majority stake sale
3. Non-Competition: Added when restrictions on shareholders' competing activities are required
4. Shariah Compliance: Detailed section on Islamic compliance measures when company operates in specific sectors
5. Executive Committee: Include when company needs additional management layer between board and executive management
6. Reserved Matters: List of decisions requiring special majority or unanimous approval, used in joint ventures or when minority protection is needed
7. Technology Rights: Include when company's business involves significant intellectual property or technology assets
8. Foreign Investment Provisions: Required when foreign shareholders are involved, detailing compliance with SAGIA regulations
1. Share Capital Distribution: Detailed breakdown of shareholding structure and paid-up capital
2. Shareholder Details: Complete information about founding shareholders including copies of IDs/CRs
3. Business Activities: Comprehensive list of licensed business activities with their ISIC codes
4. Board/Manager Powers: Detailed list of powers granted to board members or managers
5. Related Party Agreements: List of existing agreements between company and its shareholders or affiliates
6. Intellectual Property: Schedule of owned or licensed intellectual property rights
7. Initial Business Plan: If required, initial operational and financial projections
8. Specimen Signatures: Authorized signatures of initial board members/managers
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