Article 10 of the Saudi Companies Law
المادة 10 من نظام الشركات · الفصل الأول: تأسيس الشركة
Article 10 requires a company to be registered with the commercial register and to obtain any necessary licenses from the relevant authorities before pursuing its purposes.
Official text (Arabic)
This article has not been amended since the law was issued.
تزاول الشركة أغراضها بعد قيدها لدى السجل التجاري وحصولها على التراخيص اللازمة لذلك من الجهات المعنية، إن وجدت.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 10 explained in plain English
This article determines the moment at which a company may begin carrying on its activity, and it requires two things for that:
- Registration with the commercial register: the company does not pursue its purposes before it is registered.
- Necessary licenses: obtaining the licenses that the activity requires from the relevant authorities, if the activity requires a license.
The phrase "if any" means that some activities do not need a special license, so registration with the commercial register is enough for them. Activities that are subject to licensing by a particular authority are not covered by registration alone. The article does not specify these activities or the licensing authorities, as that is left to the rules governing each activity.
This article connects to Article 9, which provides that a company acquires legal personality after its registration and that, during the formation period, it has personality only to the extent necessary for its formation. Registration gives the company its legal existence, and the license, where required, permits it to carry on the licensed activity.
Anyone who wants to verify which licenses their company's activity needs before starting can contact the authority concerned with the activity or consult a lawyer specialized in companies.
Practical example
Reem formed a company to provide health services in Jeddah. After the company is registered with the commercial register, it may begin providing its services only once it has obtained the necessary license from the authority concerned with this activity, because this article requires both conditions together.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 10 of the Saudi Companies Law
Can a company start its activity before it is registered with the commercial register?
No. A company pursues its purposes after it is registered with the commercial register.
Is a commercial register enough to start the activity?
It is enough if the activity does not require a license. If it does, the necessary licenses must be obtained from the relevant authorities.
More articles on Company Formation
- Article 1
This article defines the key terms of the Companies Law, such as the Ministry, the Authority, the competent authority, relatives and day, and leaves the definition of other terms to the regulations.
1- يقصد بالكلمات والعبارات الآتية -أينما وردت في هذا النظام- المعاني الموضحة أمام كل منها، ما لم يقتضِ السياق غير ذلك: المملكة: المملكة العربية السعودية. النظام
- Article 2
Article 2 defines a company as a legal entity in which two or more persons contribute to a profit-seeking venture to share its profit and loss, and allows a company to be formed by one person or as a non-profit.
الشركة كيان قانوني يؤسس وفقًا لأحكام النظام بناء على عقد تأسيس أو نظام أساس يلتزم بمقتضاه شخصان أو أكثر بأن يساهم كل منهم في مشروع يستهدف الربح بتقديم حصة من ما
- Article 3
Article 3 provides that every company formed under the Companies Law is of Saudi nationality and must have its principal center in the Kingdom.
تعد الشركة التي تؤسس وفقًا لأحكام النظام سعودية الجنسية، ويجب أن يكون مركزها الرئيس في المملكة.
- Article 4
Article 4 sets out the five forms, one of which every company formed under the Companies Law must take.
تتخذ الشركة التي تؤسس وفقًا لأحكام النظام أحد الأشكال الآتية: أ- شركة التضامن. ب- شركة التوصية البسيطة. ج- شركة المساهمة. د- شركة المساهمة المبسطة. هـ- الشركة ذ
- Article 5
The article regulates a company's trade name: its language and sources, the former partner's consent to the use of his name, the indication of the company's form, and amendment of the name without affecting its rights and obligations.
1- يكون لكل شركة اسم تجاري باللغة العربية أو بلغة أخرى، ويجوز أن يكون الاسم مشتقًا من غرضها، أو اسمًا مميزًا، أو اسم واحد أو أكثر من الشركاء أو المساهمين فيها ا
- Article 6
Article 6 states who counts as a founder, regulates submitting the formation application to the commercial register, and gives founders the right to appeal a refusal to the Ministry and then to the competent judicial body.
1- يعد مؤسسًا كل من اشترك فعليًّا في تأسيس الشركة وساهم في رأس مالها بحصة نقدية أو عينية. 2- يقدم المؤسسون طلب تأسيس الشركة وقيدها إلى السجل التجاري، مرافقًا له
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.