It is now possible to setup a Single Shareholder Limited Liability Company in Saudi Arabia (KSA) – meaning that a limited liability company (LLC) can be formed by a single shareholder who holds 100% of the shares, has the rights and powers of the General Manager, Board of Directors and Shareholders General Assembly. This also means that the liability of the company lies with the individual shareholder, limited to their contribution to the share capital – assuming their intentions and practices are appropriate.
This can be achieved either through Direct Establishing where a person intends to form a company as an individual or through Indirect Establishing where a single person collects all of a LLCs shares, transferring the company to be a Single Shareholder Company.
A single person cannot own more than one Limited Liability Single Shareholder Company. Such single-member LLC (natural or legal person) may not incorporate another single-member LLC.
The Ministry of Investment of Saudi Arabia (MISA) offers foreign ownership of a company in the KSA without a local partner and minimal government restriction. MISA registration/license is required for a business to establish with 100% foreign ownership in Saudi Arabia.