Document background
The Limited Liability Company Operating Agreement Single Member is a crucial document required when establishing a single-owner LLC in Saudi Arabia. This agreement becomes necessary when an individual or corporate entity wishes to establish a limited liability company with sole ownership, as permitted under the Saudi Companies Law of 2015. The document serves multiple purposes: it establishes the company's legal existence, defines its operational parameters, ensures compliance with Saudi regulations including Shariah law, and protects the separation between personal and business assets. It's particularly important in the Saudi context as it must address specific local requirements such as minimum capital requirements, Saudization policies, and Zakat obligations. The agreement is commonly used by both Saudi nationals and foreign investors (subject to foreign investment regulations) looking to establish a business presence while maintaining sole control over their enterprise.
