Provisions of a One-Person Company According to the Provisions of the Saudi System: A Comparative Study

Abstract

This research examines the concept of the one-person company, focusing on its legal nature, challenges, and distinguishing characteristics compared to other company types. It focuses on the legal framework for one-person companies in Saudi Arabia, comparing it to other jurisdictions. The study finds that Saudi law recognizes two forms of one-person companies: a one-person limited liability company and a one-person joint-stock company. While legal entities can own multiple one-person companies, a natural person is restricted to one. Additionally, a one-person company cannot be jointly owned by both a natural and a legal person. The study recommends clearer regulations, including a dedicated chapter in the company law, provisions for company dissolution in the event of inactivity, and a set minimum capital requirement. The research draws on various legal references, including Saudi and Jordanian company laws, as well as works by scholars such as Lamia Abu Jaber, Nasreen Abdah Ahmed, and Karima Karim. These sources support the analysis of one-person company formation and its regulatory implications.