A Saudi joint stock company is a business entity in Saudi Arabia where ownership is divided into shares held by multiple shareholders, allowing for investment and risk-sharing in various industries and promoting economic growth and capital formation. Saudi Arabian corporate laws mandate that if a limited liability company has over fifty shareholders, it must transition into a joint stock company within a year. Additional regulations governing JSCs significantly heighten the costs associated with ensuring compliance compared to limited liability companies (LLCs). The governance structure of JSCs typically includes a board of directors, further enhancing the accountability and oversight of the company. While these regulations may indeed increase the administrative and financial burden on JSCs, they also provide a robust framework for investor protection, which can ultimately attract more local and foreign investment and promote economic growth in Saudi Arabia.
The essential government registrations in Saudi Arabia encompass: