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Joint Stock Company (JSC)

شركة مساهمة

Création d'entreprise en Saudi Arabia

Best Answer

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.

Who this is 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

Faits essentiels

Actionnaires min.1

Actionnaires max.Illimité

Administrateurs min.3

Capital minimumSAR 500,000 (closed JSC) / SAR 10,000,000 (public JSC)

ResponsabilitéLimited liability

Délai de constitution4–8 weeks

Coût annuelSAR 100,000 – 500,000+ including audit, compliance, and governance costs

Processus de constitution étape par étape

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.

Documents requis

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

Aperçu des coûts

Cost Breakdown (USD)

Coût annuel

SAR 100,000 – 500,000+ including audit, compliance, and governance costs

Coût de constitution

SAR 20,000 – 100,000 ($5,300 – $26,600)

Traitement fiscal

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.

Avantages et inconvénients

Advantages

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

Disadvantages

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

Autres structures en Saudi Arabia

Limited Liability Company (LLC)

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This 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.