Types of joint stock companies in Saudi Arabia 2023, their characteristics and names – platform

Types of joint stock companies in Saudi Arabia 2023, their characteristics and names – platform

Types of joint stock companies in Saudi Arabia 2023The world of companies is a world full of details that different businessmen and those who have a stake in this field have knowledge and experience of, and there are many different types of companies that follow certain policies during their work, and this matter depends on the basic idea for which the company works, and in the Kingdom Saudi Arabia There are types of companies, including joint stock, private, and other types, and we will now learn about the types of joint stock companies in Saudi Arabia 2023.

Types of joint stock companies in Saudi Arabia 2023

This type of company is considered one of the common types in the Kingdom of Saudi Arabia, which provides different types of services to its audience and customers, and through our topic for today, we will learn about the types of joint stock companies in Saudi Arabia 2023:

Private joint stock companies

  • Usually, joint-stock companies are companies established by members of one family in cooperation with each other, or by friends who have a strong relationship.
  • Also, joint-stock companies are characterized by the fact that they are among the companies that have a legal status for the person who carries out the partnership, which is common in this type of company, where the person speaks on behalf of the company and does business and commercial deals and everything is in its name.
  • Also, in cases of loss that may befall this company, the task of the joint partners is unlimited, and in other cases as well, such as the liquidation or distribution of profits and losses that affect the company, not only as the share of each partner from the reserves and retained profits only.
  • We mentioned all these details to you within our topic Types of Joint Stock Companies in Saudi Arabia 2023.
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The public shareholding company

  • The public shareholding company is considered an unqualified company, and this means that this company is established by individuals who have a share in the company.
  • They are called the founders, and the legal proportions differ from one country to another from the amount of their shares in the company according to which the company is established in the commercial register.

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What are the advantages of joint stock companies?

The companies that are established anywhere in the world have a profitable goal and objective in the first framework, and for this goal the company is run later, and through our topic for today we will get acquainted with the advantages of joint-stock companies through the following points:


  • The capital owned by joint-stock companies is one of the things that distinguishes them, because they need a large capital, and this matter is necessary in order to enter into economic projects.
  • It is a huge amount that allows the company to engage in constructive economic projects, and this amount is appropriate to the laws set by the Kingdom of Saudi Arabia for joint stock companies.
  • In addition, the capital in these companies shall consist of shares of an amount not less than two million riyals, and the capital shall be the only guarantee for the creditors of the companies.
  • Also, these shares are interchangeable in the financial markets, and the shares of the company are very small in size, and this helps greatly in the spread of this type of work among companies.

limited liability

  • Another advantage that joint-stock companies possess is limited liability, which means that these companies are responsible for covering debts as much as the capital owns.
  • Also, the shareholder is not a merchant, and his death or bankruptcy does not affect the status of the company, and this does not lead to bankruptcy of the shareholder.
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The most important names of the joint stock company

The joint stock company is one of the leading types of companies in the world of finance and business, which is characterized by many features that make people think of listing their company under the name of joint stock companies, and through our topic we will learn about the names of joint stock companies:

  • The name of the joint-stock company must be a name specific to the company as a whole, and it is often a trade name that has nothing to do with the name of a natural person, such as choosing the name of one of the founders of the company.
  • This matter comes for the public interest of all subscribers in this company, as there is no right or preference for one of them over the other except in one case, which is a patent.
  • In the event of obtaining a patent, companies must take a number of serial steps through which the limited shareholding company is established.
  • Determining the general objective of establishing the company ensures determining the proportions of the participants’ shares, profits, revenues, and other divisions. The company also sets laws that guarantee the safety of their money in joint-stock companies.
  • In addition, the company can contribute to external parties in the company’s shares, such as general assemblies, and internal parties, such as the company’s board of directors.

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Characteristics of legal joint stock companies

Some companies have their own advantages that make those who think about establishing a new company adopt their approach in the way of managing the company, distributing profits, and other important matters. Through our topic, we will learn about the characteristics of legal joint stock companies through the following points:

  • Through our topic, the types of joint-stock companies in Saudi Arabia, we will mention that one of the most important characteristics related to the joint-stock company is that this company is based on the financial consideration of the people participating in it.
  • The idea in this type of company is that it consists of a large number of shareholders who do not know each other, especially in the case of the company’s shares being offered for public subscription.
  • We mentioned this important information to you within our topic Types of Joint Stock Companies in Saudi Arabia 2023.
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How to establish a joint stock company

When people decide to establish a company, they set the outline for this company, which includes the type and idea that the company will follow, and we will now discuss some details regarding the establishment of a joint-stock company:

  • The establishment of joint stock companies must be subject to the supervision of a number of different actions taken by persons wishing to establish a company.
  • Also, these procedures contain important matters such as drafting the preliminary contract and the company’s system and submitting incorporation applications to the various authorities.
  • In addition to issuing a bank certificate for the payment of the capital or the part stipulated by law, along with inviting the constituent assembly and other procedures.

Types of companies in the Saudi system

The Kingdom of Saudi Arabia has a strong economic base, and this matter has contributed to the emergence of a large number of economic companies and to contribute to them. Through our topic for today, we will learn about the types of companies in the Saudi system through the following paragraph:

  • Partnership system.
  • Joint stock company system.
  • In addition to the limited liability company system.
  • The system of partnership companies by shares.
  • Simple recommendation companies system.
  • Finally, there is the non-profit corporation system.

Here we have come with you to the end of our topic for today, which bears the title Types of joint stock companies in Saudi Arabia 2023Through it, we got acquainted with all the important data related to the joint-stock companies.

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