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 in Dubai
A private shareholding company in Dubai is a legal entity whose shares must be held by a minimum of three individuals. These shares are not accessible to the public. The Ministry of Economy provides approval for a Private Shareholding company.
The Features of a Private Shareholding Company
A private shareholding 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 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
The process for opening a private shareholding company 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 the 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 procedure for a company setup in Dubai. Our expert business advisors will guide you through Dubai's required business setup services. Contact us if you are considering forming a private shareholding company in Dubai.
