The Articles of Association (AOA) is a fundamental document that outlines the internal rules and regulations governing your company. It acts as a legal contract between the company and its shareholders, defining:
Company Objectives: The primary purpose and business activities your company is authorized to undertake in Saudi Arabia.
Share Capital Structure: Details regarding the types and classes of shares issued by the company, their value, and shareholder rights.
Management Structure: The framework for your company management, including the roles and responsibilities of directors, shareholders, and the General Manager.
Meetings and Voting: Procedures for shareholder meetings, voting rights, and decision-making processes.
Amendments: The process for modifying the AOA to adapt to future needs.
Why is it required for my Business Entry into Saudi Arabia?
The AOA demonstrates transparency and adherence to proper corporate governance practices. It assures Saudi authorities that your company operates within a defined legal framework.
Components of the Articles of Association Document:
Company Name and Location: Clearly state your company's legal name and registered address.
Incorporation Details: Specify the date and location of your company's incorporation.
Objectives and Powers: Outline the primary business activities your company is authorized to conduct in Saudi Arabia.
Share Capital: Define the share capital structure, including types of shares, par value, and shareholder rights.
Management Structure: Describe the company's management framework, outlining the roles of directors and the General Manager.
Meetings and Voting: Set procedures for shareholder meetings, voting rights, and decision-making processes.
Amendment Process: Specify the process for modifying the AOA to accommodate future developments.
Amendments (if applicable): Include any amendments made to the original AOA since its creation.
Steps to Acquire/Provide the Document:
Review and Update : Ensure your AOA reflects the planned business activities in Saudi Arabia. Consider legal advice for any required adjustments.
Translation and Legalization: Have the AOA translated into Arabic by a certified translator and legalized by the Saudi embassy or consulate in your home country.