Corporate · Legal glossary
One-person company (single-owner LLC)In Arabic: شركة الشخص الواحد
Partners' resolution templateDefinition
A one-person company (single-owner LLC) is شركة الشخص الواحد in Arabic: a company owned by one person, natural or legal, including a limited liability company with a single owner.
How it varies across the GCC
In Saudi Arabia a company may be formed by one person (Companies Law, article 2). A one-person limited liability company has articles of association (نظام أساس), not a memorandum (عقد تأسيس). The owner’s decisions are in writing, the owner holds the powers of the general assembly, and every reference to the memorandum means the articles (article 157). Federal Decree-Law No. 32 of 2021 allows one natural or legal person to form and own an LLC in the UAE. The article number is under review.
The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.
Memorandum of association and the articles, comparedBasis by country
| Country | Basis |
|---|---|
| United Arab Emirates | Federal Decree-Law No. 32 of 2021 allows one natural or legal person to form and own a limited liability company. The article number is under review. |
| Saudi Arabia | Companies Law, article 2: a company may be formed by one person. Article 157: a one-person limited liability company has articles of association (نظام أساس), the owner’s decisions are in writing, the owner holds the powers of the general assembly, and a reference to the memorandum means the articles. |
| Bahrain | Under review |
| Qatar | Under review |
| Kuwait | Under review |
| Oman | Under review |
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Companies Law, art. 2, 157https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/a8376aea-1bc3-49d4-9027-aed900b555af/1
- UAE Federal Decree-Law No. 32 of 2021https://uaelegislation.gov.ae/en/legislations/1542