Establishing and operating a public or closed joint stock

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Finally, one person or an unlimited number of people can establish a closed joint stock company. However, most closed joint stock companies have a small number of shareholders, because subscription and offering of shares is only available to them and not to the public, unlike a public joint stock company. A public joint stock company is open for public subscription, where the public can purchase its shares offered on the financial market.


Company requires strict requirements and compliance with laws, financial Phone Number Data regulations and regulatory bodies. To better understand terms such as contribution, subscription, and shares, we advise you to read our article that explains what shares are with practical examples . For more information about stock trading in Saudi Arabia, we advise you to read our detailed guide on this topic. 5. SIMPLIFIED JOINT STOCK COMPANY The simplified joint stock company is the newest type of commercial company in Saudi law. This type of company was created last year. The simplified joint stock company shares several characteristics with the limited liability company and the joint stock company.



For example, the provisions of joint stock companies not listed on the financial market, such as closed joint stock companies, apply to the simplified joint stock company. The simplified joint stock company also has the right to issue multiple types and classes of shares, each class having varying values, rights, obligations, and even restrictions. Although the joint stock company is similar to the simplified joint stock company in essence, there are several important differences between the two companies. The most important of these differences is that the Saudi Commercial Law does not require the amount of the company’s capital, unlike the requirement for establishing an ordinary joint stock company.