3 Hrs
Source:
الراي
Companies Law Update Aims for Flexibility
The Council of Ministers approved an amendment to the Companies Law aimed at facilitating the establishment of companies and increasing trust in them. This was accomplished by abolishing the requirement to officially document all legal procedures and making registration in the commercial registry sufficient for contracts and amendments to be considered effective against third parties. Additionally, the draft decree abolished the partnership company and permitted owners of free professions to establish a professional company with a single person, providing a one-year grace period for existing companies to adjust their statuses. Furthermore, the council approved a modification to a provision in the Zakat House Law to reduce its Board of Directors from 12 to 7 members to enhance efficiency, with the council being restructured under the chairmanship of the Minister of Endowments. These amendments aim to foster a more flexible and transparent business environment and to simplify the procedures for establishing commercial and professional companies, reflecting the state's direction toward creating an attractive investment climate.
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