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Thanks to its ambitious Vision 2030, the Kingdom of Saudi Arabia is a leading global investment destination, offering a stimulating business environment and countless opportunities for local and international investors. At the heart of this growing economic landscape stands outJoint stock companiesAs a strategic option for large entities seeking to raise capital and expand their business. UnderstandingConditions for establishing a joint-stock company in Saudi ArabiaIt is not just a legal procedure, but a cornerstone that ensures regulatory compliance and opens doors to growth and prosperity.

Joint-stock companies are distinguished by their ability to attract significant investments through public or private offerings, which provides significant financial flexibility and unlimited opportunities for expansion. However, the process requiresEstablishing a joint stock company in Saudi ArabiaStrict adherence to applicable regulations and laws, from capital requirements to management structure and financial disclosure.

In this comprehensive guide, we will delve into all aspects related to:Conditions for establishing a joint-stock company in Saudi ArabiaWe provide you with a clear roadmap for successfully launching your project. We will review the legal requirements, administrative procedures, and the importance of consulting experts, highlighting the vital role companies like City Squares play in facilitating this complex process and providing comprehensive support to investors.

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What is a joint stock company and why is it an attractive investment option in Saudi Arabia?

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Definition of a joint-stock company and its economic importance

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A joint-stock company is a company whose capital is divided into tradable shares of equal value. Shareholder liability is limited to the value of the shares they own. This type of company is one of the most important legal entities contributing to the economic development of any country. It allows for the pooling of significant capital for projects requiring substantial investments and helps distribute risks among a large number of shareholders. In this context,Conditions for establishing a joint-stock company in Saudi ArabiaThe focus is on transparency and governance to ensure the protection of shareholder rights and enhance investor confidence.

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Advantages of establishing a joint-stock company in Saudi Arabia

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Joint-stock companies offer several advantages that make them an attractive option for investors in the Kingdom:

Ease of raising capital:Joint stock companies are the ideal vehicle for raising large amounts of capital through public or private offerings, supporting large-scale projects.

Limited liability of shareholders:A shareholder's liability is limited to the value of his shares in the company, protecting his personal assets from the company's debts and obligations.

Continuity:The company is not affected by the death, bankruptcy or withdrawal of a shareholder, ensuring business continuity.

Transparency and governance:RequiresConditions for establishing a joint-stock company in Saudi ArabiaHigh levels of transparency and disclosure, which enhances investor confidence and protects their rights.

Flexibility in transferring ownership:The ease of trading shares in the financial market enables shareholders to easily sell or buy their shares.

Reputation and status:Joint stock companies are viewed as strong and reliable entities, which enhances their reputation and makes it easier for them to obtain financing and contracts.

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Conditions for establishing a joint-stock company in Saudi Arabia: legal and procedural requirements

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Understanding and applyingConditions for establishing a joint-stock company in Saudi ArabiaAccuracy is key to success. This process requires compliance with Saudi corporate law and relevant regulations.

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1. Basic requirements for establishing a joint-stock company

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A. Number of founders and capital

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Number of founders:The number of founders must not be less than two. For joint-stock companies offering their shares for public subscription, a larger number may be required, in accordance with the requirements of the Capital Market Authority.

Capital:The capital of a joint-stock company must not be less than 500,000 Saudi riyals. The capital must be fully subscribed and paid up to the extent specified by the law. This point is one of the most importantConditions for establishing a joint-stock company in Saudi ArabiaThings to pay attention to.

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b. The company's articles of association

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The articles of association serve as the company's internal constitution and must include a set of basic data in accordance with Article 56 of the Saudi Companies Law, including:

Company name, purpose and head office.

The company's capital, number of shares, their types and nominal value.

Statement of founders and names of board members.

How the company is managed, the powers of the board of directors, and the mechanism for holding general assemblies.

Profit and loss distribution rules.

The duration of the company (if any) and how it will be liquidated.

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C. Company shares

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Types of shares:Shares may be registered or bearer (in specific cases), common or preferred.

Subscription to shares:All shares of the company must be subscribed before its incorporation.

Payment of share value:At least one-quarter of the nominal value of the shares must be paid upon subscription, and the Articles of Association shall specify the dates for payment of the remainder.

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2. Procedures for establishing a joint-stock company in Saudi Arabia

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The process requiresEstablishing a joint stock company in Saudi ArabiaGoing through several main procedural steps:

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A. Obtaining the approval of the Ministry of Commerce

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Obtaining approval from the Ministry of Commerce is the first and most essential step. This step involves submitting an incorporation application along with the company's draft articles of association for review and initial approval.

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b. Capital deposit

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Founders must deposit the subscribed capital into a bank account for the company under formation at a bank licensed in Saudi Arabia.

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C. Issuing a ministerial decision to establish (or announcing the establishment)

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After all conditions are met and the required documents are submitted, the Ministry of Commerce issues a ministerial decision to establish the company, or its establishment is announced in accordance with the new system that simplifies procedures.

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D. Registering the company in the commercial register

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After the issuance of the incorporation decision, the company is registered in the commercial register at the Ministry of Commerce, and at this stage the company is considered to have acquired its legal personality.

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e. Obtaining licenses from other parties (if any)

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Depending on the type of business activity, the company may require:Conditions for establishing a joint-stock company in Saudi ArabiaObtaining additional licenses from other government agencies, such as:

Ministry of Investment License:For foreign and Gulf companies wishing to invest in the Kingdom.

Ministry of Industry and Mineral Resources licenses:For factories and industrial activities.

Ministry of Environment licenses:For activities with environmental impact.

Capital Market Authority Licenses:For companies intending to offer their shares for public subscription.

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3. Additional requirements for listed joint stock companies

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If the company intends to be a joint stock company listed on the Saudi Stock Exchange (Tadawul), then there isConditions for establishing a joint-stock company in Saudi ArabiaAdditional and more stringent requirements imposed by the Capital Market Authority (CMA), including:

Minimum capital.

Governance and disclosure requirements.

Transparency of information and periodic reports.

Appointment of an independent board of directors.

Compliance with listing and trading rules.

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Company Formation Services in Saudi Arabia: Your Partner for a Smooth Formation Journey

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The complexityConditions for establishing a joint-stock company in Saudi ArabiaThe procedures associated with it can be challenging for investors, especially foreign ones. This is where companies specializing in providingCompany formation services in Saudi Arabia, which acts as a bridge linking investors with government agencies and facilitating their fulfillment of all requirements.

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City Squares Company: Trusted expertise in establishing companies and investing in Saudi Arabia.

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City Squares is one of the leading companies providing integrated consulting and services to investors wishing toEstablishing a joint stock company in Saudi ArabiaOr any other type of business. The company offers comprehensive solutions covering all aspects of the incorporation process and beyond, ensuring investors have a smooth and successful journey.

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Company formation services in Saudi Arabia and facilitating the procedures for issuing licenses from the Ministry of Investment.

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City Squares offers a wide range ofCompany formation services in Saudi Arabia, including:

Establishing all types of companies:Whether you are looking forEstablishing a joint stock company in Saudi Arabia, LLC, or other, City Squares provides the expertise to ensure legal compliance and facilitate all procedures.

Facilitating the procedures for issuing Ministry of Investment licenses for Gulf and foreign companies:The company has extensive experience in handling the requirements of the Ministry of Investment, which expedites the process of obtaining the necessary licenses for investors from outside the Kingdom.

Providing commercial services within the Kingdom of Saudi Arabia in the public and private sectors:City Squares' services are not limited to establishment only, but extend to include support in concluding commercial contracts with government and private entities, opening up new business horizons.

Entering markets and acquiring companies:The company provides specialized consulting to help investors enter the Saudi market, whether through establishing new entities or acquiring existing companies, with comprehensive feasibility studies.

Business classification services and management of service and industrial projects:City Squares helps companies understand the classification requirements for their activities and provides project management services to ensure their implementation is effective and efficient.

Issuing records and factory licenses:For industrial companies, City Squares provides support in obtaining the necessary commercial records and factory licenses, which is a vital part ofConditions for establishing a joint-stock company in Saudi ArabiaIndustrial in nature.

Administrative cadres specialized in opening companies in the Kingdom with extensive experience in government relations, public relations, and legal expertise in Saudi laws and regulations:The City Squares team comprises a select group of legal and administrative experts with extensive connections to government agencies, ensuring smooth and efficient procedures.

Foreign Investor Services:City Squares offers tailored services to investors from outside Saudi Arabia, including VIP services, review, and follow-up at all government ministries to complete transactions.

Issuing and amending articles of association and transferring company ownership:The company provides support in drafting and issuing articles of association, amending them later when necessary, and facilitating company ownership transfer procedures.

Corporate entity modification and company merger:City Squares helps companies adapt to market changes through legal entity modification and company merger services.

Commercial agency registration (franchise):For companies wishing to register commercial agencies or franchises, City Squares provides the expertise necessary to meet all requirements.

Post-establishment services:City Squares' services don't stop at the start-up stage, but extend to include ongoing support services after the project's launch, such as public relations and communications services, and trademark registration.

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Integrated services for establishing companies and projects in Saudi Arabia: from idea to launch

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City Squares services go beyond just fulfillment.Conditions for establishing a joint-stock company in Saudi ArabiaTo provide comprehensive solutions that ensure long-term business success.

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Premium residency services and facilitating entry for investors

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City Squares recognizes the importance of facilitating the stay of investors and their delegations in the Kingdom, and offers distinguished accommodation services that contribute to their stability and enable them to devote themselves to their work.

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Factory establishment services in Saudi Arabia

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It is consideredConditions for establishing a joint-stock company in Saudi ArabiaIndustrial plants are more complex and require additional licenses. City Squares provides full support in establishing factories, from feasibility studies to obtaining environmental and industrial safety licenses.

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International partnerships and foreign investment promotion services

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City Squares contributes to strengthening international partnerships, connecting foreign investors with opportunities in the Kingdom and facilitating their entry into the Saudi market, thus enhancing its role as a key player in supporting Saudi Vision 2030.

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Registering contracting companies with Aramco

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This service is vital for contracting companies seeking to work with major national companies such as Aramco, and City Squares provides the expertise needed to meet registration requirements.

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Our Media, Public Relations and Communication Center Services

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City Squares understands the importance of corporate image and provides professional media and public relations services aimed at building a strong reputation for clients and enhancing their presence in the market.

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VIP services and delegation reception

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For investors and VIPs, City Squares offers delegation reception services and all the necessary facilities to ensure a smooth and efficient experience during their visits to the Kingdom.

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Trademark and Commercial Agencies Registration

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Protecting intellectual property is critical, and City Squares offers trademark registration and commercial agency services to ensure the rights of businesses and investors.

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Industrial security services

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Ensuring safety in the industrial workplace is vital, and City Squares provides specialized services in the field of industrial security, including obtaining the necessary licenses.

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Schengen visa extraction

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City Squares offers Schengen visa facilitation, making it easier for investors with international connections.

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Who We Are: “City Squares” – Vision, Mission, and Values in the Service of Business

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City Squares is not just a service company; it is a strategic partner committed to achieving the success of its clients through its extensive experience and qualified team.

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About "City Squares"

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City Squares is a leading company in many services, including public relations, government relations, corporate communication, international marketing, and tourism.Company formation services in Saudi Arabia...and concluding commercial contracts in the private and public sectors. The company has successfully contracted with the largest Gulf companies in the private and public sectors, managing projects and providing innovative consulting services in the field of industry and professionalism in establishing various types of companies.

City Squares offers its services through administrative staff specialized in establishing companies in the Kingdom. They have extensive experience in government relations, public relations, and legal expertise in Saudi systems and laws, including establishing foreign companies, investor services, issuing articles of association, entering and exiting companies, amending articles of association, transferring company ownership, amending corporate entities, merging companies, and registering commercial agencies (franchises) for private and government establishments and international companies.

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Chairman's speech

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Dear members and clients of "Sahhat Al Madinah Company" in the Kingdom of Saudi Arabia and its branches in the Sultanate of Oman, the United Arab Emirates, and the Arab Republic of Egypt, I am pleased to welcome you by browsing the company profile. You will be able to learn about our history and most notable achievements, as well as view the latest services and smart solutions we provide in the world of finance, economics, and business. The development of "Sahhat Al Madinah Company" in recent years has been amazing. We are one of the first companies to start the service of establishing international companies in various countries around the world. We faced major logistical challenges, which we were able to overcome, until we reached our current form.

City Squares Company operates in line with the Kingdom’s Vision 2030 launched by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince of Saudi Arabia, may God protect him; Oman Vision 2040 launched by His Majesty Sultan Haitham bin Tariq Al Said, may God protect him; Abu Dhabi Vision 2030 under the patronage of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the State, may God protect him, and Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai; and Egypt Vision 2030 launched by President Abdel Fattah El-Sisi, may God protect him. City Squares Company seeks to implement its work in accordance with the support and visions of Arab countries to achieve the success of the Arab, African and global economy and investment.

The success achieved by "City Squares Business Services and Public Relations Company" on multiple levels in its work, which has been consistent since its establishment, testifies to its being a company that has achieved high credibility with its local, regional and international clients. It seeks to develop its strategic partnerships around the world in the field of economic business, corporate communication and marketing, to highlight the best performance and image among establishments and their audiences at the international and local levels.

City Squares Company has successfully implemented hundreds of projects in various fields, contributing to the rise of many small and large companies on the Arab and international levels in establishing their companies, presenting and preparing quick commercial deals between establishments in the public and private sectors, providing them with all consultations, economic feasibility studies, administrative and industrial services, in addition to serving VIPs and receiving delegations. It is also distinguished by the confidentiality of information in all services for all its clients.

"Finally, I can only thank our clients and agents, whom we consider our partners in this success, and everyone who has placed their trust in us and relied on us through their cooperation with "City Squares Company" to manage and expand their businesses. They are our true wealth and treasure, and I promise them that we will exert our utmost effort and knowledge to always remain worthy of this trust." - International expert Mohammed bin Rashid bin Adwan, Chairman of the Board of Directors.

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Our credibility

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City Squares is proud to be a permanent member of the Saudi and Arab Chambers of Commerce, which play a significant role in promoting trade and investment relations between the Kingdom of Saudi Arabia and Arab and foreign countries. City Squares' services range from facilitating entry into Saudi and Arab markets, preparing research and business reports for entrepreneurs, providing networking opportunities for investors and businessmen, and providing visa services.

City Squares invites its distinguished clients to attend conferences and evenings held at the company's headquarters and branches, as well as outside of them. These events bring together a wide range of businesspeople, high-level government officials, and representatives of major companies from the financial and business community. The aim is to build a broad network of relationships that will help them support their businesses and projects and achieve their goals of achieving global recognition through all the services the company provides.

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Our message

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The mission of "City Squares" is to be a partner of success in all Arab, African and international countries, linking public relations and corporate communications in exchanging international expertise and services that flourish in countries around the world and developing them through exchanging business in the best performance and global mental image. "City Squares" also aspires to have a presence in all countries of the world through the professional services it provides, such as establishing economic businesses, public relations services, corporate and marketing communications, media services, holding forums and events, and many other local and international logistical services with all its services.

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Our vision

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City Squares aspires to expand its relationships with governmental and private entities inside and outside the Kingdom of Saudi Arabia, develop public relations and corporate communication in the governmental and private sectors to serve the Kingdom of Saudi Arabia's Vision 2030, and the visions of the Sultanate of Oman, the United Arab Emirates, and the Arab Republic of Egypt 2030, and develop export and investment services inside and outside the Kingdom for mutual economic development. It seeks to apply and implement smart ideas to reach a high level of quality and professionalism, and to be the first company in the Arab world and globally in providing distinguished services and providing high-quality solutions to businessmen in our Arab world, adding new horizons for them in an open world without borders.

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Our values

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City Squares Company establishes a lasting and solid partnership with its clients, placing them at the forefront of its priorities. All of the solutions and services it provides are focused not only on meeting their needs, but also on exceeding their expectations and achieving their goals.

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City Squares branches

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City Squares has multiple branches to meet the needs of its customers in the region:

City squares in Saudi Arabia:Â https://citysquares.sa/

City squares in Egypt:Â https://www.citysquares.com.eg/

City squares in Amman:Â https://citysquares.om/

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Organizational structure of "City Squares"

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City Squares' organizational structure embodies its commitment to effective leadership and specialized expertise, contributing to the provision of the best services to its clients.

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Chairman of the Board of Directors: International Expert Mohammed bin Rashid bin Adwan

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International expert Mohammed bin Rashid bin Adwan, Chairman of the Board of Directors, is the driving force behind the success of City Squares, with his extensive experience and strategic vision in the fields of business, public relations, and investment.

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Conclusion: Embark on your investment journey with City Squares.

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UnderstandingConditions for establishing a joint-stock company in Saudi ArabiaIt is the first step towards a successful and prosperous investment. With a trusted and experienced partner like City Squares, this journey becomes easier and more efficient. Whether you are a local or foreign investor, City Squares' comprehensive support ensures you comply with all regulations, overcome challenges, and achieve your business goals in the Kingdom of Saudi Arabia.

From legal advice to facilitating licensing, project management, and post-incorporation services, City Squares is the one-stop destination for all your business needs. Invest in your future and let City Squares be your bridge to success in the promising Saudi market.

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Are you ready to establish your joint-stock company in Saudi Arabia?

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Contact us today to start your investment journey!

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