Article 8 of the Saudi Companies Law
المادة 8 من نظام الشركات · الفصل الأول: تأسيس الشركة
The article requires the formation contract or bylaws and their amendments to be in writing or be void, and to be registered; whoever causes non-registration is liable, and unregistered matters cannot be relied on against third parties.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجب أن يكون عقد تأسيس الشركة أو نظامها الأساس، وأي تعديل يطرأ عليه، مكتوبًا، وإلا كان العقد أو النظام الأساس أو التعديل باطلًا، ويكون تأسيس الشركة أو تعديل عقد تأسيسها أو نظامها الأساس بعد استيفاء ما يلزم من متطلبات وفق ما ينص عليه النظام واللوائح.
2- يجب أن يُقيد المؤسسون أو الشركاء أو مديرو الشركة أو أعضاء مجلس إدارتها -بحسب الأحوال- عقد تأسيس الشركة أو نظامها الأساس وما يطرأ عليه من تعديل لدى السجل التجاري، ويشهر السجل التجاري ما يلزم من بيانات أو وثائق وفقًا لأحكام النظام واللوائح. ويكون من تسبب من هؤلاء في عدم قيد الوثائق لدى السجل التجاري؛ مسؤولًا بالتضامن عن التعويض عن الضرر الذي يصيب الشركة أو الشركاء أو المساهمين أو الغير جراء عدم القيد.
3- يتاح للغير الاطلاع على البيانات والوثائق المنصوص عليها في الفقرة (2) من هذه المادة، وتُعد البيانات والوثائق المستخرجة من السجل التجاري حجة في مواجهة الشركة والغير.
4- لا يجوز الاحتجاج على الغير بعقد تأسيس الشركة أو نظامها الأساس أو بأي تعديل عليه إلا بعد القيد لدى السجل التجاري، وإذا لم يُقيَّد بيانٌ أو أكثر فيكون وحده غير نافذ في مواجهة الغير.
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 8 explained in plain English
This article lays down two core rules: writing and registration.
- Writing is a condition of validity: the formation contract or bylaws, and every amendment to them, must be in writing, otherwise they are void. Formation or amendment takes place after the requirements set by the Companies Law and the regulations are met.
- Duty to register and liability for it: the founders, partners, managers, or board members, as the case may be, must register the document and its amendments with the commercial register, and the register publishes what is required under the Companies Law and the regulations. Whoever among them causes non-registration is jointly liable for compensating the harm suffered by the company, the partners, the shareholders, or third parties.
- Right of inspection and evidentiary weight of extracts: third parties may inspect these data and documents, and an extract from the commercial register is evidence against the company and third parties.
- No effect before registration: the document or its amendment may not be relied on against third parties until it is registered, and if one or more items are not registered, only that item is not effective against third parties.
In practice: if the partners agree in writing on an amendment and do not register it, they cannot rely on it against those who deal with the company. This is complemented by Article 9, which provides that the company acquires legal personality after its registration with the commercial register. Anyone harmed by non-registration would do well to consult a lawyer specialized in companies.
Practical example
The partners in a general partnership company in Makkah agreed in writing to restrict the powers of one of the managers, but did not register this amendment with the commercial register. Under this article, they cannot rely on the amendment against a supplier that contracted with the company, and whoever among them caused the non-registration is jointly liable for the resulting harm.
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 8 of the Saudi Companies Law
Is an oral company formation contract valid?
No. The formation contract or bylaws and any amendment to them must be in writing, otherwise they are void.
What is the effect of not registering an amendment to the company contract in the commercial register?
The amendment may not be relied on against third parties until it is registered, and an unregistered item alone is not effective against third parties.
Who is responsible for failing to register the company's documents?
Whoever among the founders, partners, managers, or board members caused the non-registration is jointly liable for compensating the harm.
Can anyone inspect a company's formation contract?
Yes. Third parties may inspect the data and documents registered with the commercial register.
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.