Article 200 of the Saudi Companies Law
المادة 200 من نظام الشركات · الباب الثامن: الشركة المهنية
The article sets the ways to form a professional company: between licensed persons, by one person, across several professions or with a non-Saudi professional company, and participation by unlicensed persons under the regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
1- للأشخاص المرخص لهم في ممارسة مهنة حرة واحدة أن يؤسسوا فيما بينهم شركة مهنية بأي شكل من الأشكال الواردة في المادة (الرابعة) من النظام.
2- للشخص المرخص له في ممارسة مهنة حرة واحدة أن يؤسس شركة مهنية مساهمة أو مساهمة مبسطة أو ذات مسؤولية محدودة من شخص واحد لممارسة مهنته من خلالها. وإذا كان مرخصًا له في ممارسة أكثر من مهنة حرة، فله ممارستها كلها أو بعضها من خلال الشركة، وذلك بعد استيفاء الشروط والضوابط التي تحددها اللوائح.
3- يجوز تأسيس شركة مهنية من مرخص لهم في ممارسة أكثر من مهنة حرة، ويجوز كذلك تأسيس شركة مهنية مشاركة بين مرخص لهم في ممارسة مهنة حرة واحدة أو أكثر وشركة مهنية غير سعودية. وتبين اللوائح الشروط الخاصة بتأسيس هذه الشركات والضوابط المنظمة لنشاطها.
4- يجوز أن يُشارك أو يساهم في الشركة المهنية -عدا شركة التضامن وشركة التوصية البسيطة بصفة الشريك المتضامن- شخصٌ ذو صفة طبيعية من غير المرخص لهم بممارسة المهنة أو المهن الحرة محل نشاطها، أو شخص ذو صفة اعتبارية. وتبين اللوائح الشروط والضوابط الخاصة بذلك والقواعد العامة لإدارة هذا النوع من الشركات المهنية بما يصون استقلال الشركاء أو المساهمين المهنيين في ممارسة مهنهم.
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 200 explained in plain English
This article sets out the different ways of forming a professional company:
1- Between persons licensed in one profession: persons licensed to practice a single liberal profession may form a professional company among themselves in any of the forms set out in Article 4.
2- By one person: a person licensed in a single liberal profession may form a professional company, as a joint stock company, simplified joint stock company or limited liability company, from one person. If he is licensed in more than one profession, he may practice all or some of them through the company, once the conditions and rules set by the regulations are met.
3- Several professions or a foreign partnership: a professional company may be formed by persons licensed in more than one liberal profession, and a professional company may also be formed as a partnership between licensed persons and a non-Saudi professional company. The regulations set out the conditions for forming it and the rules for its activity.
4- Participation by unlicensed persons: a natural person not licensed to practice the profession that is the company's activity, or a legal person, may take part or invest in the professional company. The general partnership company, and the simple limited partnership in the capacity of general partner, are excluded from this. The regulations set out the conditions, rules and general rules for managing these companies so as to preserve the independence of the professional partners or shareholders in practicing their professions.
Many of the details in this article are referred to the regulations, so reading the article alone is not enough to know all the conditions. The article is connected to Article 199, which applies the rules of its form to the professional company where there is no special provision, and to Article 201, which regulates a professional partner's participation in another professional company. To determine the most suitable arrangement, it is advisable to consult a lawyer specializing in companies and commercial cases.
Practical example
A licensed lawyer in Riyadh wants to practice law through a company that he owns alone, so he may form a professional limited liability company from one person. If he later wanted to bring in an investor who is not a lawyer, that is permitted under the conditions and rules set out in the regulations, provided the company is not a general partnership company and the investor does not enter as a general partner in a simple limited partnership.
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 200 of the Saudi Companies Law
Can a professional form a professional company by himself?
Yes. A person licensed in a liberal profession may form a professional joint stock company, simplified joint stock company or limited liability company from one person.
May a non-professional be a partner in a professional company?
Yes. An unlicensed natural person or a legal person may take part, except in a general partnership company and a simple limited partnership in the capacity of general partner, under conditions set out in the regulations.
Can one partner with a foreign professional company?
Yes. A professional company may be formed as a partnership between licensed persons and a non-Saudi professional company, and the regulations set out the conditions for that.
May more than one profession be combined in one professional company?
Yes. A professional company may be formed by persons licensed to practice more than one liberal profession, and the regulations set out the conditions for that.
Articles this article refers to
More articles on Professional Company
- Article 197
The article defines the professional company as a company formed by one or more persons licensed in one or more liberal professions, or by them together with others, for the purpose of practicing those professions.
الشركة المهنية هي شركة يؤسسها شخص أو أكثر من المرخص لهم نظامًا في ممارسة مهنة حرة واحدة أو أكثر، أو منهم مع غيرهم، ويكون غرضها ممارسة تلك المهن.
- Article 198
The article provides that a professional company takes any of the company forms set out in Article 4 of the Companies Law.
تتخذ الشركة المهنية أيًّا من أشكال الشركات الواردة في المادة (الرابعة) من النظام.
- Article 199
The article applies the rules of its form to the professional company where there is no special provision, and provides that a partner or shareholder in it does not acquire the status of merchant by virtue of the partnership.
1- تسري على الشركة المهنية -فيما لم يرد به نص خاص في هذا الباب- الأحكام الخاصة بشكل الشركة الذي تتخذه، وبما لا يتعارض مع طبيعتها. 2- لا يكتسب الشريك أو المساهم
- Article 201
The article bars a partner or shareholder who practices the profession in a professional company from taking part in another professional company practicing the same profession, unless the formation contract or articles of association provide for it.
لا يجوز للشريك في شركة مهنية ولا للمساهم فيها، الممارسين لمهنة حرة، المشاركة ولا المساهمة في شركة مهنية أخرى تمارس المهنة الحرة ذاتها، ما لم ينص عقد تأسيس الشرك
- Article 202
The article provides that a professional company is formed under the formation procedures prescribed for its form, and that partners may dissolve it only after announcement and written notice to everyone dealing with it, under the regulations.
1- تؤسس الشركة المهنية وفقًا لإجراءات التأسيس المقررة لشكل الشركة. 2- لا يجوز للشركاء ولا للمساهمين في الشركة المهنية حلها إلا بعد الإعلان عن ذلك وإبلاغ جميع ال
- Article 203
The article limits practice of the profession in a professional company to licensed partners or shareholders, and allows it to engage other licensed persons under its supervision and responsibility.
لا تمارس الشركة المهنية المهنة أو المهن الحرة محل نشاطها إلا عن طريق الشركاء أو المساهمين المرخص لهم. ومع ذلك، يجوز لها الاستعانة في أعمالها بأشخاص آخرين مرخص ل
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.