Setting Up a Company

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
The Sole Proprietorship is a single-partner company. No minimum capital.	1 person The individual entrepreneur is liable for debts the company on his personal possessions.
Sharikat Al-Mossahamah (S.A.M) is a Public Limited Company. Minimum SAR 10 million.	Minimum 5 partners. Liability is limited to the amount contributed.
SHARIKAT ZAT MASSOULIYYAH MAHDOOAH (S.M.M) is a Private Limited Company. Minimum SAR 2 million.	Minimum 5 partners. Liability is limited to the amount contributed.
Sharikat Tadhamou is a General Partnership Company Minimum SAR 500,000	Minimum 2 partners. Liability is unlimited.
Sharikat Tawsiyah Bel-ashom - Ashom is a partnership limited by shares. Minimum SAR 1 million.	Minimum 2 partners and maximum 50. At least one partner must have an unlimited liability. Liability of other partners is limited to the amount contributed.

The Competent Organization: Ministry of Commerce and Industry

Ministry of Finance

Department of Zakat and Income Tax
Search a Company or a Financial Report: Arabian Travel Directory

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Saudi Arabia.
The Ministry of Commerce and Industry, for Business licenses.

The Active Population in Figures

	2010
Labor Force	7,337,000

Source: CIA - The world factbook

Source: UN - United Nations

Employed Persons, by Occupation (% of Total Labor Force)	2005
Agriculture	12.0%
Industry	25.0%
Services	63.0%

For Further Statistics: Ministry of Economy and Planning
Central Department of Statistics (CDS)
For Further Information About the Labor Market: ILO, International Labor Organization

Legal Weekly Duration: 8 hours a day or 48 hours a week. The number of working hours may be raised to 9 hours a day where the workman does not work continuously, such as seasonal establishments, hotel, snack bars, restaurants, etc.
Retirement Age: 60 years for men and 55 years for women.
Working Contracts: Broadly there are two types of contracts: Permanent and Fixed-term.

Majority of the contacts for foreigners in the labor sector are of fixed-term, while as for the locals these are of permanent type.

The number of 'temporary contracts' is very low.

Minimum Wage: No minimum wage.
Average Wage: Average monthly gross earnings is SAR 2,461 (USD 656).
Social contributions: Social Security Contributions Paid By Employers: 11%
Social Security Contributions Paid By Employees: 9%

Social Dialogue and Involvement of Social Partners: The labor law does not provide for collective bargaining. However, the companies that employ more than 100 Saudis are allowed to form "labor committees." There are 15 labor committees registered in the Kingdom.
Unions
Labor Regulation Bodies: Ministry of labor

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