01
Family company, charter and waqf
The Companies Law permits shareholders in a family company to conclude a family charter and make it part of the articles or bylaws. It can address family ownership, governance, management, family employment, dividends, transfers and disputes. A family waqf may serve a long-term purpose, while a private or endowment fund can be considered for investment under Capital Market Authority rules.
02
Legal form and regulated activity
A family charter does not create a separate fund and does not replace the articles, succession documents or mandatory law. A waqf has its own registration and supervision framework. An investment or endowment fund is formed and managed by a licensed capital-market institution under CMA rules and cannot be replicated by an ordinary company. A foreign trust or foundation needs separate analysis of recognition, tax, control and eligibility to hold Saudi assets.
Saudi family wealth is organised through a family company, binding corporate documents, waqf and regulated investment tools—not a universal offshore trust.
03
Family-business succession
Before the charter is drafted, the family tree, holdings, assets, heirs and objectives are mapped. The document can address the board and family council, family employment standards, dividends, share transfers and buy-outs, deadlock, conflicts and mediation. These rules should align with the articles, shareholders' agreement, succession instruments, waqf terms and bank mandates.
04
Banking, investment and origin of wealth
A bank or licensed capital-market institution examines owners, heirs and controllers, the charter or waqf deed, the manager's authority, source of wealth and funds, tax residence, assets and expected transactions. A fund also evidences its licensed manager, terms and conditions, investor eligibility and custody. A corporate or family structure does not guarantee a banking or investment product.
05
Zakat, tax and the international family
The tax map considers the status of shareholders and the company, the zakat or income-tax perimeter, VAT, withholding tax, transfer pricing, distributions and asset transfers, together with the residence-country rules of family members. Beneficial ownership, CFC, CRS/FATCA, treaty eligibility and classification of any foreign trust, foundation or holding company are tested separately.
FAQ
FAQ
Which private-wealth structure works in Saudi Arabia?
The Companies Law permits shareholders in a family company to conclude a family charter and make it part of the articles or bylaws. It can address family ownership, governance, management, family employment, dividends, transfers and disputes. A family waqf may serve a long-term purpose, while a private or endowment fund can be considered for investment under Capital Market Authority rules.
Does the structure protect assets automatically?
A family charter does not create a separate fund and does not replace the articles, succession documents or mandatory law. A waqf has its own registration and supervision framework. An investment or endowment fund is formed and managed by a licensed capital-market institution under CMA rules and cannot be replicated by an ordinary company. A foreign trust or foundation needs separate analysis of recognition, tax, control and eligibility to hold Saudi assets.
Can a bank account be guaranteed?
A bank or licensed capital-market institution examines owners, heirs and controllers, the charter or waqf deed, the manager's authority, source of wealth and funds, tax residence, assets and expected transactions. A fund also evidences its licensed manager, terms and conditions, investor eligibility and custody. A corporate or family structure does not guarantee a banking or investment product.
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