Requirements for Establishing a Simple Limited Partnership in Saudi Arabia (2026) | A Comprehensive Guide to Steps, Costs, and Documentation
43 minutes ago
Are you looking for a legal structure that combines the capital of a silent investor with full protection of his money, and the expertise of a partner who manages the company with complete responsibility? Do you want to establish a simple limited partnership company in Saudi Arabia under the new Companies Law with fast, fully electronic procedures?
A simple limited partnership company is one of the types of companies in the new Saudi system and one of the partnership companies under Saudi law. It allows a financing partner (a limited partner) to invest in the company without bearing any liability beyond his share of the capital, while the general partner takes charge of managing and operating the company with full responsibility. At HR 360 Solutions, we provide integrated services for establishing simple limited partnership companies in Riyadh and all cities of the Kingdom, from the first legal consultation until obtaining the commercial registration.
- Specialized consultations on choosing the most suitable legal structure for your project.
- Drafting and notarizing articles of association in a way that protects the rights of each class of partners.
- Completing all procedures through the Saudi Business Center platform.
- Follow-up with government entities and the required licenses.
- Ongoing support after establishment with zakat, insurance, and regulatory compliance.
Do you need a free consultation about establishing your simple limited partnership company?
What is a simple limited partnership company in Saudi Arabia?
A simple limited partnership company consists of two classes of partners under the Saudi Companies Law issued by Royal Decree No. (M/132) and its amendments: a class of general partners who bear liability for the company’s debts with their personal assets, and a class of limited partners whose liability is restricted to their share of the capital only. This distinction makes it the ideal choice for a businessman who wants to fund his project through an investor who does not wish to appear or participate in management.
The simple limited partnership company is managed by the general partners only, who thereby acquire the status of merchants and assume all regulatory obligations connected with it. As for the limited partner, he acts as a financier of the company: he shares in the profits and bears losses to the extent of his share, without interfering in management or having his name included in the trade name.
It is worth noting that the service of establishing a simple limited partnership company is now fully available through the Saudi Business Center platform of the Ministry of Commerce, including commercial registration, publishing the articles of association in the “Aamal” electronic newspaper, registration with the Social Insurance and Zakat, Tax and Customs Authority, and chamber of commerce membership, without the need to visit any government branch.
Types of partners in a simple limited partnership company
The General Partner
A partner who bears unlimited liability for the company’s debts and obligations with all of his personal assets. He manages the company, makes decisions, and represents it before third parties, and acquires the status of a merchant. He must be at least 18 years old and must not be a government employee.
The Limited Partner
A partner whose liability is limited to his share of the capital only. He does not participate in management, does not represent the company before third parties, and his name may not be included in the company’s trade name. He may be a natural person or a legal person (a company).
Conditions for establishing a simple limited partnership company in Saudi Arabia 2026
To successfully establish a simple limited partnership company, the following conditions must be met in accordance with the Saudi Companies Law and the requirements of the Ministry of Commerce:
Minimum number of partners
The number of partners must not be less than two, provided there is at least one general partner and at least one limited partner. A simple limited partnership is not valid with only one class of partners.
Legal age
The partner must be at least 18 years old. If a partner is a minor who has not reached the age of majority, a guardianship deed must be submitted to complete the establishment.
Not being a government employee
Partners are required not to be government employees, in compliance with the rules on conflict of interest and integrity of government work in the Kingdom.
Trade name
A distinctive, non-duplicated name must be chosen, and the company’s name may not include the name of a limited partner; if a limited partner’s name is included in violation of this rule, the general partner bears the responsibility. The name must include the company’s legal form.
Legitimate business activity
The activity must be defined precisely, noting that some activities require additional licenses or approvals from specialized authorities. The company’s head office must be located within the Kingdom.
Notarized articles of association
Articles of association must be prepared including the partners’ data and their classes, the capital and each partner’s share, the management system and the distribution of profits and losses, and notarized before a notary public.
Steps to establish a simple limited partnership company in Saudi Arabia, step by step
The procedures for establishing a simple limited partnership company are completed fully electronically through the Saudi Business Center platform of the Ministry of Commerce. Here are the detailed steps:
Step one: Determine the partners’ structure and reach agreement among them
Before starting officially, the partners must agree on the following essential points:
- Determining who is the general partner and who is the limited partner.
- The amount of capital and the distribution of shares among the partners.
- The percentage of profit and loss distribution for each partner.
- The company’s duration and how it ends or is liquidated.
- The company’s management mechanism and the powers of the managers.
Step two: Reserve the trade name
Reservation details
- Log in to the Saudi Business Center platform.
- Select the service of establishing a simple limited partnership company.
- Choose a distinctive, non-duplicated name that complies with the regulations.
- Reservation fees start from SAR 100.
Remember that the name may not include the name of a limited partner, must reflect the activity or be a distinctive name, and must be followed by the legal form “simple limited partnership company.”
Step three: Prepare and notarize the articles of association
The articles of association of the simple limited partnership company are the most important document in the process, and they must include, in accordance with the Companies Law:
- The partners’ names and data, specifying the class of each of them (general or limited).
- The company’s name, head office, and purpose.
- The capital and a sufficient definition of the share each partner undertakes to contribute and when it falls due.
- The company’s management system, identifying which of the general partners will manage it and their powers.
- The distribution of profits and losses among the partners.
- The provisions on the company’s dissolution, liquidation, and duration.
- The start and end dates of the financial year.
The contract is written in Arabic and notarized before a notary public or through approved electronic channels, with notarization fees ranging between SAR 300 and SAR 600 depending on the number of partners and the volume of notarization.
Step four: Publish the articles of association
The articles of association must be published in the approved electronic newspaper “Aamal” to complete the legal publicity of the company, through the electronic service provided by the Ministry of Commerce.
Publication fees
Publication fees are approximately SAR 500, in addition to 15% value-added tax.
Step five: Issuance of the commercial registration
After notarizing and publishing the contract, an application for registering the company in the commercial register is submitted through the platform with the required documents attached. The commercial registration fees for a simple limited partnership company amount to SAR 800 for the first year. Upon printing the commercial registration, a national unified number is issued for the establishment, automatically linking it with partner government entities.
Step six: Associated regulatory registrations
Within the same service, the following are completed electronically in sequence:
- Opening an establishment file with the Ministry of Human Resources and Social Development.
- Registration with the Zakat, Tax and Customs Authority.
- Registration with the Social Insurance (GOSI).
- Activating the national address through Saudi Post (SPL).
- Chamber of commerce membership according to the establishment’s location.
Step seven: Open the bank account and additional licenses
After obtaining the commercial registration, a commercial bank account can be opened in the company’s name. Any additional licenses required by the activity must also be completed (municipal license, health, technical, or environmental approvals).
Do you want to establish your limited partnership company without errors and in the fastest time?
Cost of establishing a simple limited partnership company in Saudi Arabia 2026
The cost of establishing a simple limited partnership company in Saudi Arabia varies depending on the number of partners, the type of activity, and the required licenses. Here is the estimated breakdown:
| Item | Estimated cost (Saudi Riyal) |
|---|---|
| Trade name reservation | SAR 100 – 200 |
| Notarization of articles of association (notary public) | SAR 300 – 600 |
| Commercial registration fees (first year) | SAR 800 |
| Publication fees in “Aamal” newspaper | SAR 500 |
| Value-added tax (15%) | Based on total fees |
| Chamber of commerce fees (according to activity) | Variable |
| Legal and consultation fees | SAR 1,500 – 3,000 |
| Estimated total | SAR 2,000 – 4,000+ |
Documents required to establish a simple limited partnership company
- Establishment application form: completed electronically through the Saudi Business Center platform.
- A copy of the national ID for Saudi partners, a valid residence permit for residents, or a passport for foreigners.
- The articles of association, signed and notarized by a notary public.
- Guardianship deed: if one of the partners is a minor.
- Professional licenses: for professional activities, with verification of the percentages of licensed partners.
- Ministry of Investment license: if one of the partners is a foreign investor.
Advantages and disadvantages of a simple limited partnership company in Saudi Arabia
| Advantages | Disadvantages |
|---|---|
| Enabling the silent investor to profit without bearing liability for the debts. | The general partner bears unlimited liability with his personal assets. |
| Ease of funding the project from limited partners without giving up management. | The limited partner has no right to interfere in management at all. |
| Simplified establishment procedures and relatively low fees. | The limited partner’s name may not be included in the trade name. |
| No legal minimum capital requirement. | Admitting a new partner or amending the contract requires specific approvals in the contract. |
| Speed of decision-making since management is in the hands of the general partners only. | If the limited partner interferes in management, he is exposed to full joint liability. |
The difference between a simple limited partnership company and a general partnership company
| Criterion | Simple limited partnership company | General partnership company |
|---|---|---|
| Types of partners | General + limited | All partners are general partners |
| Liability | Unlimited for the general partner; limited to his capital share for the limited partner | All partners are liable with their personal assets |
| Management | In the hands of the general partners only | In the hands of all partners |
| Trade name | The limited partner’s name may not be included | Any partner’s name may be included |
| Best suited for | Projects needing funding without participation in management | Families and partnerships with mutual trust |
To learn about other legal structures, you can review our article on the silent partnership (Mudharaba) in Saudi Arabia and when it is used as an alternative to a declared partnership.
Frequently asked questions about establishing a simple limited partnership company in Saudi Arabia
How long does it take to establish a simple limited partnership company in Saudi Arabia?
The procedures take between 5 and 15 business days through the Saudi Business Center platform, depending on the completeness of documents and the speed of notarizing and publishing the contract. Specialized follow-up shortens the duration noticeably.
Can the limited partner be a legal person (a company)?
Yes, the limited partner may be a legal person (a company), provided that its commercial registration is not struck off, suspended, or inactive at the time of establishment, in accordance with the requirements of the Ministry of Commerce.
Can a simple limited partnership company be established with a foreign partner?
A foreign investor may participate, but must first obtain a license from the Ministry of Investment and comply with the participation percentages specified according to the type of activity; some activities are restricted to Saudis.
May a limited partner manage the company?
No, the limited partner may not interfere in management or perform acts that create rights against third parties. If he does so, he becomes jointly liable for all of the company’s obligations and loses the protection of limited liability.
Is there a minimum capital for a simple limited partnership company?
No, the Companies Law does not set a minimum capital, and it is determined by the partners’ agreement in a manner consistent with the nature of the activity and the expected volume of business.
What happens if the company goes bankrupt?
If the company goes bankrupt, the general partners bear the debts with their personal assets and may be declared bankrupt, while the limited partner loses only his share of the capital and is not declared bankrupt because of the company’s obligations.
Tips to avoid common mistakes when establishing
- Do not mix up the powers of the general and limited partner in the contract: any ambiguity may legally turn the limited partner into a general partner.
- Do not include the limited partner’s name in the trade name: this exposes him to full liability.
- Verify the partners’ eligibility: age, not being a government employee, and the absence of a commercial ban.
- Define the profit and loss distribution mechanism clearly: especially since the limited partner’s share may not correspond to his percentage of the capital.
- Do not rely on ready-made templates: a limited partnership agreement needs drafting by a specialized lawyer.
Why choose HR 360 Solutions to establish your company?
HR 360 Solutions provides integrated services for establishing simple limited partnership companies in Riyadh and all cities of the Kingdom:
| Service | What we offer at HR 360 |
|---|---|
| Legal consultations | Determining whether the simple limited partnership is the most suitable structure for your project. |
| Contract drafting | Articles of association that protect the general and limited partner and define responsibilities precisely. |
| Government procedures | Completing the establishment entirely through the Saudi Business Center platform. |
| Notarization and publication | Notarizing the contract and publishing it electronically in the “Aamal” newspaper. |
| Regulatory registrations | Social insurance, zakat, taxes, chamber of commerce, and the national address. |
| Ongoing support | Post-establishment consultations and regulatory compliance assurance. |
Start establishing your simple limited partnership company today
Do not risk drafting the articles of association on your own. The HR 360 team is ready to help you at every step, from evaluating the most suitable legal structure until receiving the commercial registration. Book your free consultation now and start your project with confidence.