Article 236 of the Saudi Companies Law
المادة 236 من نظام الشركات · الباب الحادي عشر: الشركات الأجنبية
The article states that a foreign company carries on its activity inside the Kingdom through a branch, a representative office or any other form, in accordance with the Foreign Investment Law and the relevant legal provisions.
Official text (Arabic)
This article has not been amended since the law was issued.
تمارس الشركة الأجنبية نشاطها وأعمالها داخل المملكة من خلال فرع أو مكتب تمثيل أو أي شكل آخر، وفقًا لنظام الاستثمار الأجنبي والأحكام النظامية الأخرى ذات العلاقة.
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 236 explained in plain English
This article specifies the means by which a foreign company carries on its activity and business inside the Kingdom, and mentions three options:
- A branch of the foreign company.
- A representative office.
- Any other form.
The article does not detail the conditions or procedures for each option. Instead, it ties carrying on the activity to the Foreign Investment Law and the other relevant legal provisions. Anyone who wishes to bring their foreign company into the Saudi market must consult these laws to learn what is required.
This article is linked to Article 235, which applies the provisions of the Companies Law to foreign companies carrying on activity inside the Kingdom, except the formation provisions and without prejudice to special agreements and applicable laws. Article 237 also requires every branch or representative office to put on all its papers, documents and publications its address in the Kingdom and the company's full name, address and head office.
To choose the most suitable form for a foreign company's activity and meet its requirements, it is advisable to consult a lawyer specializing in foreign investment.
Practical example
An Asian software company wants to enter the Saudi market. It may carry on its activity through a branch in Riyadh, a representative office or any other form, provided it complies with the Foreign Investment Law and the other relevant legal provisions.
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 236 of the Saudi Companies Law
How does a foreign company carry on its activity in Saudi Arabia?
Through a branch, a representative office or any other form, in accordance with the Foreign Investment Law and the other relevant legal provisions.
Which laws govern opening a branch of a foreign company?
The article refers to the Foreign Investment Law and the other relevant legal provisions, and it does not itself detail the conditions.
More articles on Foreign Companies
- Article 235
The article applies the Companies Law to foreign companies carrying on activity in the Kingdom, except the formation provisions and without prejudice to special agreements and applicable laws.
دون إخلال بالاتفاقات الخاصة المبرمة بين المملكة وبعض الدول أو الشركات الأجنبية، والأنظمة المعمول بها في المملكة، وفيما عدا الأحكام المتعلقة بتأسيس الشركات، تسري
- Article 237
The article requires every branch or representative office of a foreign company to put on its papers, documents and publications its address in the Kingdom and the company's full name, address and head office.
يجب على كل فرع أو مكتب تمثيل لشركة أجنبية أن يضع على جميع أوراقه ووثائقه ومطبوعاته عنوانه في المملكة، بالإضافة إلى الاسم الكامل للشركة وعنوانها ومركزها الرئيس.
- Article 238
The article regulates the finances of a foreign company's branch: stating its fiscal year in the registration application, preparing and filing its financial statements with the auditor's report within 6 months, and appointing an auditor.
1- يجب أن يتضمن طلب قيد فرع الشركة الأجنبية تاريخ بدء وانتهاء السنة المالية للفرع. 2- فيما عدا مكاتب التمثيل، يجب على فرع الشركة الأجنبية إعداد القوائم المالية
- Article 239
The article treats a foreign company's branch or representative office in the Kingdom as its domicile for its activity inside the Kingdom, and applies all the laws in force to it.
يعد فرع الشركة الأجنبية أو مكتب تمثيلها داخل المملكة موطنًا لها فيما يتعلق بنشاطها وأعمالها داخل المملكة، وتطبق عليه جميع الأنظمة المعمول بها في المملكة.
- Article 240
The article makes a foreign company and those who carried on its activity jointly liable if it operated before completing licensing and commercial register registration or went beyond what it was licensed for.
إذا زاولت الشركة الأجنبية نشاطها وأعمالها قبل استيفائها إجراءات الترخيص، إن وجدت، وقيدها لدى السجل التجاري، أو قامت بأعمال تجاوزت المرخص لها فيها، كانت الشركة و
- Article 241
A foreign company present in the Kingdom to carry out specific work within a set period is registered provisionally in the commercial register until that work ends, and may continue after meeting the legal requirements.
إذا كان وجود الشركة الأجنبية في المملكة من أجل تنفيذ أعمال معينة وخلال مدة محددة، فتقيد لدى السجل التجاري بصورة مؤقتة وينتهي قيدها بانتهاء تلك الأعمال وتنفيذها،
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.