A new Professional Corporate Law has passed in 2019 and entered into force in 2020. Accordingly, the foreign shareholding limitation of 75% in professional activities firms (e.g. law, auditing, accounting, engineering and architectural firms), which applied under the previous legislation, remained in place.
"Article 2
A professional company is a civil company with an independent legal personality incorporated by one person (or more) duly licensed to practice a single profession (or more), or by such licensees with others, for the purpose of practicing such professions.
Article 3
A professional company shall take any of the following corporate forms:
a) Unlimited liability company.
b) Joint-stock company.
c) Limited partnership.
d) Limited liability company.
[...]
Article 5 [...]
3. A professional company may be incorporated by persons licensed to practice more than one profession. A professional company may also be incorporated between a non-Saudi professional company and persons licensed to
practice a single profession or more. The Regulations shall set the requirements for the incorporation of these companies and for their activities.
4. A legal person or a natural person not licensed to practice any of the profession(s) of the professional company may become a partner or shareholder in such company, except in an unlimited liability company or a limited partnership with the capacity of a general partner. The Regulations shall set the relevant requirements and shall prescribe the general rules for managing such professional company in a manner that preserves the independence of professional partners and shareholders in the practice of their professions.
[...]
Article 10
A professional company may not render its professional services except through its licensed partners or shareholders. However, it may, for such purpose, engage other licensed professionals, provided they are supervised by the company and fall under its liability.[...]" (Law of Professional Companies Royal Decree No. M/17 September 25, 2019)
----------------------------
"Conditions and controls for establishing a professional company in partnership with a non-Saudi professional company
Taking into account the provisions of the foreign investment law and related decisions, the following conditions are required to establish a professional company between a person licensed to practice one or more free professions and a non-Saudi professional company or companies: 
a) The share of the Saudi licensees shall not be less than (25%) of the professional company's capital.
b) The non-Saudi professional company that intends to participate or contribute to the professional company should have a distinguished reputation in the field of self-employment.
c) That the non-Saudi professional company participating in or contributing to the professional company have one or more representatives who have obtained a license to practice the free profession in the field of activity of the professional company from the competent authority in the home of the non-Saudi professional company or in his home, in each free profession in which you participate or contribute to the professional company .
d). Obtaining the approval of the competent authority in the Kingdom in the cases where this is necessary.
e). That the non-Saudi professional company transfer expertise and technical knowledge to the professional company and train Saudis. [...]" (The executive regulations of the Professional Companies Law Royal Decree No. M/17 September 25, 2019 [google translation])
----------------------------
Previously up to 2020 : see below
----------------------------
"Article One
Persons licensed to practice a profession may form amongst themselves civil companies enjoying corporate personality in accordance with the provisions of this Law. Licensed Saudi professionals may partner with foreign specialized professional companies, in accordance with conditions stipulated by the Minister of Commerce.
[...]
Article Four
A professional company may not practice the profession except through the partners. Nonetheless, the company may seek the assistance of licensed professionals under the supervision and responsibility of the company. [...]" (Professional Companies Law issued by Royal Decree No. M / 4 dated 28/2/1412 AH)
----------------------------
"Article Five
The license for the establishment of mixed professional companies that take place between licensed Saudi professionals and professional foreign professional companies shall be authorized by a decision of the Minister of Commerce on the following conditions:
1- That the foreign company has a distinguished reputation in the field of the profession.
2- That the foreign company was established ten years ago, during which it conducted its business without interruption.
3- The company should contribute to transferring rich experience and technology and training the Saudis.
4- The foreign professional company must have a permanent representative - at least one - in the Kingdom, the duration of his residence should not be less than nine months in a year, and the representative must have at least a university qualification in the area of ​​the company's specialization, and that he is a member of one of the professional associations specializing in the same The profession is licensed, and his work experience should not be less than ten years in a row, and foreign companies that participated in the establishment of existing professional companies must adjust their conditions according to these conditions within a period of a maximum period of one year from the date of this decision in order to continue practicing the profession in The Kingdom.
5- To submit a copy of its founding contract abroad, certified and translated into Arabic.
6- The transfer of the share of a Saudi partner to a non-Saudi does not result in a decrease in the shares of the Saudi partners of 25% of the capital. [...]" (Executive Regulation of the Professional Companies Law issued by Royal Decree No. M / 4 dated 28/2/1412 AH)
Law of Professional Companies Royal Decree No. M/17 September 25, 2019
The executive regulations of the Professional Companies Law Royal Decree No. M/17 September 25, 2019 [google translation]
Professional Companies Law issued by Royal Decree No. M / 4 dated 28/2/1412 AH
Executive Regulation of the Professional Companies Law issued by Royal Decree No. M / 4 dated 28/2/1412 AH
[<a href="https://mc.gov.sa/ar/Regulations/Pages/details.aspx?lawId=79e13b73-0391-43cf-b90e-ab50008c76a6">Law</a>],[<a href="https://mc.gov.sa/ar/Regulations/Pages/details.aspx?lawId=79e13b73-0391-43cf-b90e-ab50008c76a6">Regulation</a>],[<a href="https://mci.gov.sa/ar/Regulations/Pages/details.aspx?lawId=3ac18b02-3a65-4009-b1ee-a81e00fcdfa4">Act</a>],[<a href="https://mci.gov.sa/ar/regulations/pages/details.aspx?lawId=71c7994d-a7fe-4e6f-938c-a84100b2237d">Regulation</a>]