The Recognition of the One-Person Company in the Kingdom of Saudi Arabia

Bouthaina Ali Noureldeen Atwan

 

Abstract: This note highlights recent legislative developments concerning one-person company in the Kingdom of Saudi Arabia (KSA) that culminated in the companies law of the year 1443 H (2022). This note shows how the legislature in KSA is open to developments in contemporary legal jurisprudence and business practices subject to a test of the compatibility with Shariah. The Companies Law (2022) explicitly recognises the possibility of incorporating a company comprising a sole person as shareholder. While the recognition of a one-person company involves a paradigm shift in the legal nature of a company that is no longer confined to the theory of contract between two or more parties, it is still reconcilable with Shariah.