A sole establishment/proprietorship in Saudi Arabia (KSA) is referred to as an establishment.
This company type is suitable for small businesses. An establishment has an individual/sole trader, who has unlimited personal liability for the business and the licence is issued in their name – a company or corporate body cannot own the business. The sole proprietorship is not a legal entity and refers to the business owner who is personally liable.
With Saudi Arabia’s fast-growing economy and altering business environment, an establishment has the benefit of being flexible and adaptable with only one decision-maker.