{"id":145824,"date":"2026-06-13T06:17:00","date_gmt":"2026-06-13T03:17:00","guid":{"rendered":"https:\/\/www.salamahlaw.com\/?p=145824"},"modified":"2026-06-13T06:17:00","modified_gmt":"2026-06-13T03:17:00","slug":"establishing-a-simple-limited-partnership","status":"publish","type":"post","link":"https:\/\/www.salamahlaw.com\/en\/establishing-a-simple-limited-partnership\/","title":{"rendered":"Establishing a Simple Limited Partnership"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A Simple Limited Partnership is one of the legal forms of companies stipulated under the New Companies Law and is among the most commonly established company types in Saudi Arabia on a daily basis. In this article, we at Al-Salamah Law Firm &amp; Legal Consultations explain how to establish a Simple Limited Partnership in Saudi Arabia.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Definition of a Simple Limited Partnership<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Article (51) of the New Companies Law issued in 1443 AH defines a Simple Limited Partnership as a company composed of two categories of partners:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At least one partner, whether a natural or legal person, who is personally and jointly liable for all the company\u2019s debts and obligations with all of his assets; and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At least one partner, whether a natural or legal person, acting as a limited partner, who is liable for the company\u2019s debts and obligations only to the extent of his share in the company\u2019s capital.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A limited partner does not acquire the status of a merchant.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Accordingly, a Simple Limited Partnership in Saudi Arabia consists of two types of partners, whose liabilities differ as follows:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">General Partners<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A general partner may be a natural or legal person and bears personal and joint liability for all the company\u2019s debts and obligations with all of his assets. General partners are subject to the provisions applicable to partners in a general partnership.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Limited Partners<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A limited partner may be a natural or legal person and is not liable for the company\u2019s debts and obligations except to the extent of his share in the capital. A limited partner does not acquire merchant status.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Simple Limited Partnership in Saudi Arabia<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To establish a Simple Limited Partnership in Saudi Arabia, the Articles of Association must, in particular, include the following information:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Names and details of the partners.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company name.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Head office of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company objectives.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company capital and its distribution among the partners, with sufficient identification of each partner\u2019s contribution and its due date.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company term, if any.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company management.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Partners\u2019 resolutions and the quorum required for their issuance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Method of distributing profits and losses among the partners.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Start and end dates of the fiscal year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company dissolution.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any other provisions, conditions, or information agreed upon by the partners, provided they do not conflict with the Law.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Procedures for Establishing a Simple Limited Partnership via the Investment Authority<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Ministry of Commerce provides an electronic service through the Saudi Business Center platform for establishing a Simple Limited Partnership. Through this service, the following can be completed:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registration of the commercial record and Articles of Association \/ bylaws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Publication of the contract in <\/span><i><span style=\"font-weight: 400;\">A\u2019amali<\/span><\/i><span style=\"font-weight: 400;\"> newspaper.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Opening a facility file with the Ministry of Human Resources and Social Development.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registration with the Zakat, Tax and Customs Authority.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Registration with the General Organization for Social Insurance (GOSI).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subscription to the approved business address with Saudi Post (SPL).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Membership in the Chamber of Commerce based on location.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When using this service, the following data must be completed:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determining the number of partners.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determining the company status (optional).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Submitting the application.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Duration of the commercial registration, headquarters, company activities, and objectives.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Partners\u2019 information.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commercial registration details.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company details.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Company management details.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Articles of Association details.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Application summary.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Removal of a Partner from a Simple Limited Partnership<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The removal of a partner from a Simple Limited Partnership refers to the termination of the partner\u2019s legal status as a partner and his entitlement to receive his rights in the company as of the date of withdrawal. The Law sets specific conditions for a partner\u2019s exit from a Simple Limited Partnership, as follows:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">First: Conditions for the Withdrawal of a General Partner<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Article (51) of the Companies Law provides that general partners in a Simple Limited Partnership are subject to the provisions applicable to partners in a general partnership. Accordingly, the provisions governing withdrawal from a general partnership, as stipulated in Article (46) of the Law, apply, as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unless otherwise provided in the Articles of Association, a partner may withdraw from the company by unilateral will, provided that the remaining partners are notified at least sixty (60) days prior to the date specified for withdrawal.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Articles of Association may provide procedures for expelling partners. If the Articles do not address this matter, a numerical majority of the partners may apply to the competent judicial authority to expel one or more partners for legitimate reasons, while the company remains in existence among the remaining partners.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The withdrawal or expulsion of a partner must be registered and published in the Commercial Register, and such withdrawal or expulsion shall not be effective against third parties except after registration and publication.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Second: Conditions for the Withdrawal of a Limited Partner<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A limited partner may exit the Simple Limited Partnership by assigning all or part of his shares to any of the other partners in the company.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">A limited partner may also assign all or part of his shares to a third party, subject to the approval of all general partners and the holders of the majority of the capital of the limited partners, unless the Articles of Association provide otherwise.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Simple Limited Partnership Contracts<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you wish to obtain:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A Simple Limited Partnership contract,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A contract for the dissolution of a Simple Limited Partnership, or<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A contract for the sale of a partner\u2019s share in a Simple Limited Partnership,<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">our firm has a professional and experienced team specializing in Simple Limited Partnership contracts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For contracts required by the Investment Authority, we prepare the necessary documentation and represent you before the Ministry of Commerce to obtain an official copy of the Simple Limited Partnership contract, ensuring the protection of all partners\u2019 rights.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Simple Limited Partnership Contract \u2013 Ministry of Commerce<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The Ministry of Commerce provides a standard template for a Simple Limited Partnership contract. You may contact Al-Salamah Law Firm &amp; Legal Consultations, as we represent our clients in obtaining an official copy of this contract.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Simple Limited Partnership Contract \u2013 Investment Authority<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Al-Salamah Law Firm &amp; Legal Consultations provides templates for Simple Limited Partnership contracts that are accepted by the Investment Authority.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Questions &amp; Answers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">What is a Simple Limited Partnership in Saudi Arabia?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">It is a legal form of company consisting of two types of partners: general partners and limited partners.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What are the conditions for establishing a Simple Limited Partnership in Saudi Arabia?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The commercial registration must not be cancelled or suspended if one of the partners is a legal person.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Partners must be at least 18 years old; if a partner is a minor, a legal guardianship deed must be submitted.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Partners must not be government employees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the company is professional in nature, the following must be verified:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Valid professional licenses for the partners;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The licensed Saudi partner\u2019s share in a mixed company must not be less than 25%;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The percentage of licensed partners must not be less than 70%.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">What documents are required to establish a Simple Limited Partnership in Saudi Arabia?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A legal instrument authorizing establishment or participation in a company, if one of the partners is a government entity, non-profit organization, charitable association, or endowment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A license from the Saudi Central Bank if the business activity so requires.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Do not risk the beginning of your company or the incorporation procedures. <span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/api.whatsapp.com\/send\/?phone=966533336845&amp;text&amp;type=phone_number&amp;app_absent=0\" target=\"_blank\" rel=\"noopener nofollow\">Contact us today<\/a><\/strong><\/span> to receive an assessment of your legal needs, and we will assign the most suitable lawyer to ensure a sound launch fully compliant with Saudi law.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Simple Limited Partnership is one of the legal forms of companies stipulated under the New Companies Law and is among the most commonly established company types in Saudi Arabia on a daily basis. In this article, we at Al-Salamah Law Firm &amp; Legal Consultations explain how to establish a Simple Limited Partnership in Saudi&#8230;<\/p>\n","protected":false},"author":34,"featured_media":145820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[105,26],"tags":[],"class_list":["post-145824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-services","category-general-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/posts\/145824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/comments?post=145824"}],"version-history":[{"count":2,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/posts\/145824\/revisions"}],"predecessor-version":[{"id":145826,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/posts\/145824\/revisions\/145826"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/media\/145820"}],"wp:attachment":[{"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/media?parent=145824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/categories?post=145824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/tags?post=145824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}