Article 205 of the Saudi Companies Law
المادة 205 من نظام الشركات · الباب الثامن: الشركة المهنية
The article subjects the professional company, in practicing its profession, to the supervision of the body concerned with that profession, binds it to that body's laws and regulations, and gives the body the right to inspect its records within its jurisdiction.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تخضع الشركة المهنية -في ممارسة المهنة أو المهن الحرة محل نشاطها- لإشراف الجهة أو الجهات المعنية نظامًا بالإشراف على ممارسة تلك المهن.
2- على الشركة المهنية التقيد بأحكام الأنظمة واللوائح التي تضعها الجهة أو الجهات المعنية وفق اختصاصها.
3- للجهة المعنية الاطلاع على سجلات الشركة المهنية ووثائقها والتفتيش عليها -في حدود اختصاصها- للتحقق من التزامها بأحكام الأنظمة ذات العلاقة بالمهنة الحرة محل نشاطها، وعلى الشركة المهنية الالتزام بتقديم ما يطلب منها.
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 205 explained in plain English
This article shows that the professional company, besides being subject to the Companies Law, is subject to the oversight of the body that regulates its profession.
1- Supervision: the professional company is subject, in practicing the profession or professions that are its activity, to the supervision of the body or bodies legally responsible for supervising the practice of those professions.
2- Compliance with the laws: the professional company must comply with the provisions of the laws and regulations issued by the body or bodies concerned according to their jurisdiction.
3- Review and inspection: the body concerned may:
- Review the company's records and documents.
- Inspect them.
This is within its jurisdiction, to verify the company's compliance with the provisions of the laws relating to the liberal profession that is its activity. The professional company must comply with providing what is requested of it.
The powers of the body concerned are therefore limited in two ways: they must be within its jurisdiction, and they must relate to verifying compliance with the laws connected to the profession. The article does not name a particular body, because the body differs depending on the profession.
This article is connected to Article 204, which limits the company's activity to the profession or professions that are its activity, and to Article 206, which regulates a partner's or shareholder's practice of his profession outside the company. When you receive a request for review or inspection, it is advisable to consult a lawyer specializing in companies and commercial cases.
Practical example
A professional accounting company in Riyadh received a request from the body concerned with supervising the accounting profession to review its records and documents to verify its compliance with the laws relating to the profession. The company must provide what is requested of it, as long as the request is within that body's jurisdiction.
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 205 of the Saudi Companies Law
Who supervises a professional company?
In practicing the profession that is its activity, it is subject to the supervision of the body or bodies legally responsible for supervising the practice of those professions.
Does the body concerned have the right to inspect a professional company?
Yes. It may review and inspect the company's records and documents within its jurisdiction, to verify its compliance with the laws relating to the profession.
Must a professional company provide documents to the body concerned?
Yes. The professional company must comply with providing what is requested of it.
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 200
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.
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 م
- 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
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.