Article 6 of the Saudi Companies Law
المادة 6 من نظام الشركات · الفصل الأول: تأسيس الشركة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 عقد التأسيس أو النظام الأساس والبيانات والوثائق اللازمة وفقًا لشكل الشركة.
3- يبتّ السجل التجاري في الطلب المستوفي البيانات والوثائق اللازمة وفقًا لأحكام النظام.
4- في حال رفض الطلب يجب أن يكون مسببًا، ويحق للمؤسسين التظلم أمام الوزارة خلال (ستين) يومًا من تاريخ إبلاغهم برفض الطلب.
5- في حال رفض التظلم أو إذا لم يبتّ فيه خلال (ثلاثين) يومًا من تاريخ تقديمه، يحق للمؤسسين التظلم أمام الجهة القضائية المختصة.
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 6 explained in plain English
This article explains the company formation application process from start to appeal:
- Who is a founder: anyone who actually took part in forming the company and contributed to its capital with a cash or in-kind share; both conditions are required together.
- Submitting the application: the founders submit the formation and registration application to the commercial register, together with the formation contract or bylaws and the data and documents required according to the company's form.
- Deciding the application: the commercial register decides on an application that meets the data and document requirements in accordance with the Companies Law.
- Reasoned refusal: if the application is refused, the refusal must state its reasons.
- Appeal to the Ministry: the founders have the right to appeal to the Ministry within 60 days of being notified of the refusal.
- Recourse to the courts: if the appeal is rejected, or is not decided within 30 days of being submitted, they have the right to appeal to the competent judicial body.
The documents accompanying the application are governed by Article 7, including the requirement that the formation contract or bylaws be in Arabic.
Anyone whose application has been refused and who wants to assess the reasons for refusal or prepare the appeal would do well to consult a lawyer specialized in companies or administrative matters.
Practical example
Noura and her partner submitted an application to form a company in Riyadh and were notified of a reasoned refusal. They have 60 days from notification to appeal to the Ministry; if the appeal is rejected, or 30 days pass without a decision, they may appeal to the competent judicial body.
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 6 of the Saudi Companies Law
How long do I have to appeal the refusal of a company formation application?
The founders have the right to appeal to the Ministry within 60 days of being notified of the refusal of the application.
What can I do if the Ministry does not respond to my appeal?
If the appeal is not decided within 30 days of being submitted, the founders have the right to appeal to the competent judicial body.
Who counts as a company founder?
Anyone who actually took part in forming the company and contributed to its capital with a cash or in-kind share.
Must the refusal of a formation application give reasons?
Yes. The article provides that a refusal of the application must state its reasons.
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 7
Article 7 specifies the founding document for each form of company, requires it to contain what the Companies Law requires and to be in Arabic, and directs the Ministry to prepare guidance templates.
1- يكون لكل شركة تؤسس وفقًا لأحكام النظام عقد تأسيس، عدا شركة المساهمة وشركة المساهمة المبسطة والشركة ذات المسؤولية المحدودة المملوكة لشخص واحد، فيكون لكل منها
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.