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A Corporate Charter is the foundational legal document that brings a company to life under Saudi law. It spells out the basic rules and structure of your business, including its name, location, capital amount, and what the company does. Think of it as your company's birth certificate and constitution rolled into one.

Under the Saudi Companies Law, your charter must detail the rights and duties of shareholders, board members, and management. It also sets important ground rules like how to handle share transfers, hold meetings, and distribute profits. Once approved by the Ministry of Commerce, this document gives your company its legal personality and ability to do business in the Kingdom.

You need a Corporate Charter when starting any new company in Saudi Arabia - it's a mandatory first step before you can legally operate. This is especially crucial when forming Joint Stock Companies or Limited Liability Companies, as these structures require detailed documentation of ownership, management rights, and capital structure.

The charter becomes vital during major company changes too - like adding new shareholders, changing your business activities, or opening branches. It protects everyone's interests by clearly defining roles and responsibilities, making it essential for attracting investors or getting business licenses. Many banks and government agencies will ask to see your charter before doing business with you.

• Basic JSC Charter: Used for Joint Stock Companies, requiring detailed shareholder rights, board structure, and strict capital requirements
• LLC Charter: Simpler format for Limited Liability Companies, focusing on partner shares and management structure
• Professional Company Charter: Tailored for licensed professionals like lawyers or accountants, with specific provisions for qualifications and liability
• Holding Company Charter: Contains additional provisions for managing subsidiaries and investment portfolios
• Single-Person Company Charter: Streamlined version for sole owners, with simplified governance requirements under Saudi law

• Company Founders: Must agree on and sign the Corporate Charter when establishing the business, setting initial ownership and structure
• Legal Advisors: Draft and review the charter to ensure compliance with Saudi Companies Law and Ministry regulations
• Board Members: Bound by the governance rules and responsibilities outlined in the charter
• Shareholders: Their rights, voting powers, and profit-sharing arrangements are defined and protected by the charter
• Ministry of Commerce Officials: Review and approve the charter before company registration can proceed

• Basic Company Details: Gather company name, proposed capital, business activities, and headquarters location
• Ownership Structure: List all shareholders with their ID numbers, nationalities, and planned ownership percentages
• Management Framework: Decide on board composition, manager authorities, and decision-making processes
• Financial Planning: Define capital distribution, profit-sharing ratios, and reserve requirements
• Regulatory Compliance: Check Ministry of Commerce guidelines for your specific business type
• Document Generation: Use our platform to create a legally-sound charter that meets all Saudi requirements

• Company Identification: Legal name, type, duration, and registered office address in Saudi Arabia
• Business Purpose: Detailed description of permitted commercial activities
• Capital Structure: Total capital, share values, and distribution among partners/shareholders
• Management Framework: Board composition, voting rights, and decision-making procedures
• Financial Provisions: Profit distribution, reserve requirements, and fiscal year definition
• Dispute Resolution: Clear procedures for resolving conflicts under Saudi law
• Dissolution Terms: Conditions and procedures for company liquidation

A Corporate Charter differs significantly from a Corporate Governance Document in several key ways. While both are important for business operations in Saudi Arabia, they serve distinct purposes and come into play at different stages of a company's life.

• Legal Status: A Corporate Charter is the foundational document that legally establishes your company's existence, while a Corporate Governance Document outlines how the established company will be run
• Timing of Creation: The Charter must be in place before company registration, whereas Governance Documents can be developed and modified after formation
• Modification Process: Changing a Charter requires Ministry of Commerce approval and shareholder agreement, while Governance Documents can be updated through internal procedures
• Content Focus: Charters contain basic company information and structure, while Governance Documents detail operational policies, board procedures, and internal controls