Key Differences Between LLC and Joint Stock Company in Saudi Arabia

When considering business setup in Saudi Arabia, understanding the different types of business entities is crucial. Two of the most common structures are Limited Liability Companies (LLCs) and Joint Stock Companies (JSCs) . Each has its unique characteristics, benefits, and drawbacks, making them suitable for different types of businesses. In this blog, we’ll explore the key differences between LLCs and JSCs in Saudi Arabia to help you make an informed decision for your business setup. 1. Legal Structure and Ownership Limited Liability Company (LLC) An LLC is a popular business structure in Saudi Arabia due to its flexible ownership options and limited liability. An LLC can have between 2 to 50 shareholders, and the liability of each shareholder is limited to their capital contribution. This means that personal assets are protected in case the company faces financial difficulties. Joint Stock Company (JSC) A JSC, on the other hand, is a more complex structure that requires a min...