Joint Stock Company (JSC)
شركة مساهمة
Company formation in Saudi Arabia
The JSC is best suited for: Large enterprises planning to list on Tadawul (Saudi stock exchange), Major joint ventures and consortium structures, Companies in regulated sectors requiring a JSC structure, Businesses seeking to raise capital from multiple investors. JSC companies follow the same tax regime as LLCs: 20% corporate tax on the foreign shareholder portion, 2.5% Zakat on the Saudi/GCC portion. Public JSCs listed on Tadawul are subject to additional CMA reporting and disclosure requirements. VAT at 15% applies to all standard-rated supplies. Withholding tax rates on outbound payments are identical to those for LLCs.
- Large enterprises planning to list on Tadawul (Saudi stock exchange)
- Major joint ventures and consortium structures
- Companies in regulated sectors requiring a JSC structure
- Businesses seeking to raise capital from multiple investors
Key Facts
Step-by-Step Formation Process
Obtain MISA licence and CMA approval (if public)
Secure the MISA foreign investment licence. For a public JSC intending to list on Tadawul, obtain approval from the Capital Market Authority (CMA). A closed JSC does not require CMA approval.
Draft the Articles of Association and appoint the board
Prepare detailed articles covering governance, share classes, board composition (minimum 3 directors), general assembly procedures, and dividend policy. Appoint the founding board of directors.
Register with the Ministry of Commerce
Submit all documents to the MoC for registration. The JSC is registered and published in the Official Gazette. Obtain the Commercial Registration.
Deposit capital and complete regulatory registrations
Deposit the minimum share capital at a Saudi bank. Register with ZATCA for tax/Zakat and VAT. Obtain the municipal licence and register with GOSI.
Required Documents
- MISA foreign investment licence
- Detailed Articles of Association
- Board of directors appointment resolution
- Founding shareholders' agreement
- Bank deposit receipt for share capital
- CMA approval (for public JSC only)
- Independent auditor appointment letter
- Office lease agreement
Cost Overview
Tax Treatment
JSC companies follow the same tax regime as LLCs: 20% corporate tax on the foreign shareholder portion, 2.5% Zakat on the Saudi/GCC portion. Public JSCs listed on Tadawul are subject to additional CMA reporting and disclosure requirements. VAT at 15% applies to all standard-rated supplies. Withholding tax rates on outbound payments are identical to those for LLCs.
Pros & Cons
- No limit on number of shareholders — suitable for large capital raises
- Required structure for listing on Tadawul
- Strong governance framework signals credibility to partners and investors
- Can issue different classes of shares
- Shares are transferable — facilitating investment and exit
- High minimum capital (SAR 500,000 closed; SAR 10,000,000 public)
- Mandatory independent audit and formal governance structures
- Minimum 3 directors required
- Formation timeline is longer and more expensive than LLC
- Extensive ongoing compliance obligations including annual general assemblies
Other Structures in Saudi Arabia
Ready to form a JSC in Saudi Arabia?
Get a personalised cost estimate and next steps.
Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.