Private Shareholding Company Formation in Dubai

Dubai is ever-adaptive to empower business set up opportunities with several possibilities. There are many legal forms to initiate a business in Dubai. A legal form describes the kind of business the company can be performing. One can participate in benefitting from Dubai’s economy and thriving global market by investing in a Private Shareholding Company.

Private Shareholding Company (Private Joint-Stock Company) ables a partnership in a range of 2 to 200 shareholders.

Business set up in Dubai under a private partnership company allows having more than one branch. Each branch has the flexibility to operate any number of activities included in the primary business license.

Conditions for Opening a Private Sharing company in Dubai​

  • Approval from the Ministry of Economy must be obtained to establish a private shareholding company.
  • Any commercial or industrial type of business is eligible for creating Private Joint-Stock Company. Professional activities does not compliment with this legal form.
  • Partners of any nationality can own a private shareholding company following DED business regulations.
  • UAE nationals are to own at least 51% of a Private Shareholding Company (Private Joint-Stock Company), and GCC nationals can hold up to 100%.​
  • The trade name should be pertinent to the commercial activity of the firm. Trade names must include one or more of the partners’ names and annexed by the phrase “Private Shareholding Company”.
  • ​​​An appointed manager is mandatory as per DED business regulations for a private partnership company.

Capital Requirements for Private Shareholding Company

  • The partners must contribute an investment of a minimum capital of AED 5,000,000 in the business.
  • The nominal value of the issued shares is fully paid up
  • A period of not less than two financial years has expired
  • During the two years preceding the application for conversion, the company achieved net profits distributable to the shareholders, the average value of which is not less than 10% of the capital
  • A resolution of the extraordinary assembly for the conversion of the company is adopted by a majority of shareholders representing at least three-quarters of the company's capital​

How to Convert Business from Private to Public Shareholding Company?

Private shareholding company shares cannot be offered to a Public Shareholding Company. However, business can be converted to a public company after a minimum of two years of company formation. ​Individual shareholding company's branches can be sold and waived to any party or company. The new owner(s) can also change its legal form according to DED procedures.

Business Setup Worldwide is a platform to help you set up your business. Right from incorporation, registration and licensing to establishing your office space, we facilitate the formation of your company through expert solutions and services. Our clients rely on our counseling where we critically analyse the individual business growth. Our experts can advice the appropriate legal form for your company formation in Dubai for maximum efficiency in running your business. Feel free to contact us on any query regarding business setup; we would be happy to assist you.