joint stock companies

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Joint stock companies

Types

Shareholding companies in the Kingdom of Saudi Arabia, is one of the most widespread companies whose definition depends on the fact that it is a group of companies that are committed to a project.

Between two or more people until the implementation of this project is done properly and accurately, provided that the profit is achieved, and it is divided among these people who are shareholders in that company, while bearing the loss as well, if any.

joint stock companies in Saudi Arabia

It is one of the most important companies that are based on shareholding, between two or more persons.
In order to obtain profit or loss in the implementation of a particular project.
With a view to profit or loss with any profit divided among the persons contributing to this project.
The capital in such companies is divided into a group of shares, which are of equal value.
It should also be negotiable and easy.
The amount of the capital for these companies, when their incorporation process is completed, should not be less than a quarter of their value.
It results from the practice of commercial activities related to these companies.
These joint stock companies, we recommend that they be responsible for all debts as well as the obligations that arise.
The capital when establishing these companies must not be less than 500 thousand Saudi riyals.
In order to achieve all commercial purposes.

Establishment of joint stock companies in Saudi Arabia

The founders of that company have to undergo several different procedures.
The responsibility of the founders of these companies is only jointly at the incorporation stage.
Procedures related to the establishment of these companies are based on drafting a preliminary contract with submitting a set of different requests.
Which is related to the incorporation, to those concerned authorities.
Issuance of a bank certificate, in order to be based on the payment of the value of the capital or any part legally stipulated.
Inviting the Constituent Assembly to take its own procedures.

Names of joint stock companies

With regard to the title or the name of the company, it may not be in the name of one of the individuals contributing to that company.
The name of that company is chosen, according to any derivation of its own, or even according to the work and field of that company.
In order to obtain a name assigned to the company, it takes a large number of systematic steps, since the start of work on that joint stock company.
The goal of the company is determined from its first incorporation, because this goal is relied upon later.
By determining the percentages of the partners in that company as a whole, the profits and returns, as well as other divisions.
The company determines the laws that contribute to ensuring the safety of the funds of the individuals participating in these joint stock companies.
It is also possible for the company to participate, with external parties, in the shares of these companies, which are represented in the general assemblies.
As well as other internal bodies, which are represented in the Board of Directors of that joint stock company.