Joint Stock Company (JSC)
For Large-Scale Enterprises and Public Offerings
A Joint Stock Company is designed for large enterprises that may seek public investment. It can be either closed (private) or public (listed on Tadawul). JSCs have stricter governance requirements but offer the ability to raise capital through share offerings.
Minimum Capital
SAR 500,000 (Closed) / SAR 10,000,000 (Public)
Ownership Structure
Minimum 2 shareholders, no maximum limit
Liability
Limited to share value
Setup Time
4-8 weeks
Advantages
- Can raise capital through public offerings
- Unlimited number of shareholders
- Shares freely transferable
- Enhanced credibility and prestige
- Can be listed on Saudi Stock Exchange (Tadawul)
- Perpetual existence regardless of shareholder changes
- Suitable for large-scale projects
Considerations
- Higher capital requirements
- Strict governance and compliance requirements
- Mandatory board of directors
- Annual audited financial statements required
- More complex setup process
Requirements
- Minimum capital: SAR 500,000 (closed) or SAR 10M (public)
- Board of Directors (minimum 3 members)
- General Assembly meetings
- External auditor appointment
- Detailed Articles of Association
- CMA approval for public companies
Ideal For
Large corporations
Companies planning IPO
Infrastructure projects
Banks and financial institutions
Insurance companies
Major industrial ventures
Setup Process
Founders Agreement
Draft founders agreement and business plan
Capital Subscription
Founders subscribe to initial capital
Constituent Assembly
Hold constituent assembly meeting
Board Formation
Elect board of directors
Registration
Register with Ministry of Commerce
CMA Approval
For public companies, obtain CMA approval