Private Shareholding Company in Dubai

Dubai offers entrepreneurs and business investors numerous growth opportunities and options for legal entities for business setup. A private shareholding company is one legal structure commonly used by businessmen and entrepreneurs worldwide.

Private Shareholding Company Setup in Dubai

A private shareholding company in Dubai is a legal entity where the shares of a company must be held by a minimum of three individuals and these shares are not accessible to the public. The approval for a Private Shareholding company is provided by the Ministry of Economy.

The Features of a Private Shareholding Company in Dubai

A private shareholding company formation in Dubai is a worthwhile option for businesses. The characteristics of a private shareholding company in Dubai are as follows:

  • Limited Ownership: The minimum number of shareholders in a private shareholding company in Dubai is three. 
  • Minimum Capital: The minimum share capital for a private shareholding company formation in Dubai is AED 2 million. 
  • Local Shareholding: At least 51% of the shares must be held by UAE nationals, and foreign investors or residents can own the remaining 49%. 
  • Management Structure: The private shareholding company has a board of directors who conduct the annual general meeting. The chairman and the majority of the directors must be UAE nationals. As per the regulations of DED, a manager needs to be mandatorily appointed for the company.
  • Trade Name: The trade name must relate to the firm's commercial activity, including one or more of the partners’ names, and be annexed by the phrase “Private Shareholding Company.” 

The Process of Setting up a Private Shareholding Company in Dubai

The process for opening a private shareholding company for a business setup in Dubai is provided below:

1. Finalize the Company Name

Decide a suitable name for your business by maintaining all the regulations determined by the government authority. 

2. Obtain the Initial Approval

Obtain consent from the stakeholders and the initial clearance from the Department of Economic Development (DED) Dubai.

3. Decide the Business Activity

Finalize the business activities you want to proceed with and get approval from the relevant authority. 

4. Apply for the License

Submit all the following documents to apply for the business license:

  • Original copies of the Directors' Names, Date and Place of Birth, Occupation, and Sample Signature
  • UAE Securities and Commodities Authority Approval for Private Shareholding
  • Auditors Certificate
  • Appointed Board of Managers and Directors Written Declaration accepting appointment
  • Four copies of the Memorandum and Articles of Association authenticated by Notary Public
  • Photocopies of Office Space Contract and Registered Plot Number
  • Founder’s Agreement with Registration and Licensing Application
  • Government Approval for Business Activity
  • Resolution from Ministry of Economy
  • Due Diligence Survey

5. Pay the Fees

Clear the required amount payable for the business registration and license approval. 

Professional assistance from Business Setup Worldwide will ease the company setup procedure. Our expert business advisors will guide you through the required business setup services in Dubai. Get in touch with us if you are considering forming a Private Shareholder Company in Dubai.


1. How many shareholders may be in a private share company at one time?

Not more than 200.

2. What is the number of the minimum number of shareholding members?

Minimum of 3 shareholders.

3. Are there any regulations regarding the director of the private shareholding company in the UAE?

In a private shareholding firm, the Chairman and the majority of the Directors must be UAE citizens.

4. What is a general partnership?

A privately held corporation is referred to as a general partnership if there are two proprietors.