Introduction

Non-profit companies are essential legal entities that support social, charitable, and cultural initiatives within Saudi Arabia. The Ministry of Commerce provides a clear regulatory framework for establishing this type of company, aligned with Vision 2030 to empower the non-profit sector.

What is a Non-Profit Company?

A legal entity that engages in commercial or service activities without distributing profits to its founders or partners. Instead, all revenues are reinvested to serve the company’s social and community objectives.

Steps to Establish a Non-Profit Company in Saudi Arabia

  1. Define the Type of Company
    Determine whether it will be a non-profit limited liability company (LLC) or a non-profit joint-stock company based on targeted activities and the number of founders.

  2. Prepare the Articles of Association and Bylaws
    This includes setting the company’s objectives, founders’ names, capital, revenue allocation (for company purposes only), and decision-making mechanisms.

  3. Submit the Application Online
    Through the Ministry of Commerce platform:

    • Access Business Portal

    • Select the company incorporation service

    • Complete required data

    • Attach the articles of association and other legal documents

  4. Obtain Necessary Approvals
    Certain non-profit activities (cultural, health, educational) require approvals from relevant regulatory bodies such as the Ministry of Culture or the Ministry of Human Resources and Social Development.

  5. Issue the Commercial Registration (CR)
    After completing procedures and approvals, the non-profit company’s CR is issued.

  6. Open a Bank Account in the Company’s Name
    Using the CR, articles of association, and bylaws.

  7. Register with Relevant Authorities
    Including:

    • Zakat and Tax Authority

    • Social Insurance (if there are employees)

    • Any additional licenses based on the activity

Benefits of Establishing a Non-Profit Company

  • Access to government support and funding

  • Exemption from some fees and taxes

  • Contribution to achieving Vision 2030’s social goals

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