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Small Business Transfer Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Small Business Transfer Agreement

"I need a Small Business Transfer Agreement under Saudi Arabian law for transferring ownership of my local coffee shop chain with 3 locations in Riyadh to a domestic buyer, with completion planned for March 2025 and including post-sale consulting arrangements."

Document background
The Small Business Transfer Agreement is a crucial document used in Saudi Arabia when transferring ownership of a small business enterprise from one party to another. It is specifically designed to comply with Saudi Arabian commercial law, including Royal Decree No. M/32 (Commercial Law) and related regulations. This document becomes necessary when a business owner wishes to sell their enterprise, whether due to retirement, relocation, or strategic decisions. The agreement comprehensively covers the transfer of business assets, employee contracts, liabilities, licenses, and operational requirements while ensuring compliance with local regulations, including Zakat obligations and labor laws. It's particularly important in the Saudi Arabian context as it must align with both modern commercial practices and Islamic law principles, making it distinct from similar agreements in other jurisdictions.
Suggested Sections

1. Parties: Identification of the seller and purchaser, including full legal names, registration details, and addresses

2. Background: Context of the transaction, brief description of the business, and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core terms of the transfer, including what is being sold and purchased

5. Purchase Price: Details of the consideration, payment terms, and payment mechanism

6. Completion: Timing and mechanics of the completion process, including conditions precedent

7. Seller's Warranties: Warranties regarding the business, assets, liabilities, and operations

8. Purchaser's Warranties: Basic warranties from the purchaser, including capacity to enter into the agreement

9. Business Assets: Detailed description of assets included in the sale

10. Employee Matters: Treatment of employees and related liabilities

11. Handover: Process for transferring control of the business

12. Confidentiality: Obligations regarding confidential information

13. Governing Law and Jurisdiction: Confirmation of Saudi Arabian law and jurisdiction

14. Execution: Signature blocks and execution formalities

Optional Sections

1. Non-Competition: Restrictions on seller's future business activities - include when seller could potentially compete

2. Intellectual Property: Specific provisions for IP transfer - include when business has significant IP assets

3. Property Leases: Provisions for transfer of leases - include when business premises are leased

4. Post-Completion Services: Transitional services by seller - include when handover period is needed

5. Third Party Consents: Process for obtaining required consents - include when key contracts require consent for transfer

6. Debt and Encumbrances: Handling of existing debts - include when business has significant liabilities

7. Foreign Investment Provisions: Compliance with foreign investment laws - include when purchaser is non-Saudi

8. Zakat Provisions: Specific provisions for Zakat liability - include when significant Zakat implications exist

Suggested Schedules

1. Schedule 1 - Business Assets: Detailed inventory of all tangible and intangible assets included in the sale

2. Schedule 2 - Excluded Assets: List of assets specifically excluded from the sale

3. Schedule 3 - Employee Information: Details of all employees, their terms and conditions

4. Schedule 4 - Properties: Details of all business premises and property rights

5. Schedule 5 - Contracts: List of business contracts being transferred

6. Schedule 6 - Intellectual Property: Detailed list of all IP rights included in the sale

7. Schedule 7 - Completion Requirements: Checklist of documents and actions required for completion

8. Schedule 8 - Warranties: Detailed warranties given by the seller

9. Appendix A - Form of Transfer Documents: Template documents required for the transfer

10. Appendix B - Handover Checklist: Detailed checklist for business handover process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































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Relevant Industries

Retail

Food and Beverage

Professional Services

Manufacturing

Technology

Healthcare

Construction

Real Estate

Education

Hospitality

Trading

Automotive

Fashion and Apparel

Logistics

Consulting

Relevant Teams

Legal

Finance

Operations

Compliance

Risk Management

Corporate Development

Business Development

Human Resources

Commercial

Mergers & Acquisitions

Relevant Roles

Business Owner

CEO

Managing Director

Legal Counsel

Corporate Lawyer

Business Development Manager

Finance Director

Operations Manager

Compliance Officer

Commercial Director

Risk Manager

Company Secretary

Chief Financial Officer

Business Transfer Specialist

Merger & Acquisition Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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