The Certificate of Articles of Incorporation is a mandatory document required for establishing any company in Saudi Arabia. It serves as the primary constitutional document that governs the company's existence and operations. This document is required by the Saudi Companies Law 2015 and must be filed with the Ministry of Commerce as part of the company registration process. The Certificate includes crucial information about the company's structure, including capital requirements, shareholding patterns, management framework, and business activities. It forms the basis for all corporate governance matters and is essential for obtaining necessary licenses and permits. The document must be drafted in Arabic and may include an English translation, though the Arabic version remains legally authoritative. Any subsequent modifications to the Articles must follow specific procedures and obtain necessary governmental approvals.
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1. Article 1: Company Name and Type: States the official company name in Arabic and English, and specifies the type of company (e.g., LLC, Joint Stock Company)
2. Article 2: Company Purpose: Detailed description of all business activities the company is authorized to conduct
3. Article 3: Company Location: Specifies the company's headquarters location and provisions for establishing branches
4. Article 4: Duration: States the duration of the company's existence (fixed term or indefinite)
5. Article 5: Capital Structure: Details of the company's capital, number of shares/units, and their value
6. Article 6: Ownership Structure: Names and details of all shareholders/partners and their respective ownership percentages
7. Article 7: Management Structure: Defines the management structure, including board of directors or managers
8. Article 8: Shareholder Meetings: Procedures for conducting shareholder meetings and voting mechanisms
9. Article 9: Financial Year and Accounts: Specifies the financial year and requirements for maintaining accounts
10. Article 10: Profit Distribution: Rules for the distribution of profits and handling of losses
11. Article 11: Company Dissolution: Conditions and procedures for company dissolution and liquidation
1. Foreign Investment Provisions: Required when there are foreign shareholders, detailing compliance with foreign investment regulations
2. Shareholder Loans: Terms for shareholder loans if applicable to the company structure
3. Share Transfer Restrictions: Specific restrictions on the transfer of shares beyond statutory requirements
4. Preemptive Rights: Detailed provisions for shareholders' preemptive rights in future capital increases
5. Reserved Matters: List of decisions requiring special majority or unanimous approval
6. Intellectual Property Rights: Provisions regarding ownership and protection of intellectual property
7. Non-Competition Provisions: Restrictions on shareholders' involvement in competing businesses
1. Schedule 1: Shareholder Details: Detailed information about shareholders including ID numbers, addresses, and contact information
2. Schedule 2: Capital Contributions: Detailed breakdown of each shareholder's capital contribution
3. Schedule 3: Business Activities: Comprehensive list of approved business activities with their official codes
4. Schedule 4: Board Members/Managers: Detailed information about initial board members or managers including their powers
5. Schedule 5: Share Classes: Details of different share classes and associated rights if applicable
6. Appendix A: Shareholders' Resolution: Initial shareholders' resolution approving the incorporation
7. Appendix B: Required Governmental Approvals: Copies of pre-approval letters and licenses from relevant authorities
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