Conversion from Sole Proprietorship to Company

This service enables the investor to convert an institution into a company.

Service Price and Execution Period

Service Fees: 3,110.00 SAR
VAT: Included in total price (15%)
Government Fees: 1700 SAR
Execution Period: 1 Working Day
Government Approval Time: 1 Working Day

Required Documents

National Address.
Authenticated opening and purchasing letter.
The national identity of the establishment owner.
Identities of the company’s Saudi and resident partners and managers
Submission of draft articles of association; If the conversion is to a joint stock/simplified company entity.
Submission of a bank certificate if the share is in cash, or an approved evaluator’s report if the share is in kind; In the event of converting to a joint stock company.

Service Conditions

In the event that one of the partners is a juridical party, the commercial registration must neither be written off or suspended.
The age must not be less than 18 years, and if the applicant is a minor under the age of puberty, a guardianship instrument must be submitted if the guardian is not the father.
The applicant must not hold a government position.
A legal document must be present if one of the partners is a government entity, granting them the right to incorporate or participate in a company.
A license or initial approval from the Saudi Central Bank must be obtained if the nature of the business activity so requires.
A waiver from the owner of the establishment must be provided if they are not a partner in the company.
The applicant must be the owner of the establishment or electronically authorised on their behalf.
The following must be verified in case the type of the company is (Professional): The partners must hold a valid professional license. The percentage of the licensed Saudi partner in the mixed company must not be less than 25%. The percentage of licensed partners must not be less than 70%.
Government Fees: - SAR 1,600 for a Joint Stock Company or a Simplified Joint Stock Company. - SAR 1,200 for a Limited Liability Company (LLC). - SAR 1,000 for a General Partnership or a Limited Partnership. - SAR 500 for publication fees.
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