The new <a style="color: #993300;" href="https://mc.gov.sa/ar/DO/com-2022.The new Companies Law and its executive regulations all requirements on small and micro companies to enable them to expand and grow, facilitate their establishment procedures, and grant greater flexibility to include special terms and conditions in their articles of incorporation or statutes, in consideration of their novelty and size and to facilitate entrepreneurs.
The new Companies Law has introduced a new form of incorporation for small and micro companies. The Law introduced a new form of companies that did not exist previously, the "Simplified Joint Stock Company“, to meet the needs and requirements of entrepreneurship, which can be established by one person, and does not require a board of directors and can be managed by a manager, and does not require the existence of general assemblies, and the company's statute specifies the procedures for holding meetings and issuing decisions.
The Law exempts the company's articles of incorporation or statutes from the provisions of the Law. <The new Companies Law exempted the new Companies Law from the requirement to appoint an auditor, and specified three criteria that exempt the company when two of them are met from the requirement to appoint auditors, namely: Its annual revenues should not exceed SAR 10 million, its assets should not exceed SAR 10 million, and the number of the company's employees should not exceed 49. <The executive regulation of "<a style="color: #993300;" href="https://amlak.net.The new Companies Law stipulates that "the director or chairman of the board of directors of the company shall, when filing the financial statements of the company, attach a statement stating that the requirement to appoint an auditor is not applicable to the company and that one or more partners or shareholders representing the percentage prescribed in paragraph (3) of Article (19) of the Law have not applied for the appointment of an auditor."
The Law provides possible mechanisms for the appointment of an auditor. The Law has created possible mechanisms for entrepreneurs, venture capitalists and private ownership with the aim of increasing their contribution to the domestic output of the national economy, while the executive regulations of the Law set the controls for the distribution of interim profits to partners and shareholders ”in all types of companies“ to ensure the sustainability of these companies and not be affected, by emphasizing the importance of having reasonable liquidity with the company, and having distributable profits according to the latest financial statements sufficient to cover the proposed profits.
