Public Shareholding Company in Dubai

Most of the business owners these days want to make sure that they look out for the best possible opportunities that they can find to start a business. Currently, the United Arab Emirates is an important business destination for foreign investors who want to open their company. One of its Emirates, Dubai, has been shifting its gears from oil based economy to service based economy and therefore you may find new companies and startups coming up here in the Middle East rapidly.

Dubai offers its entrepreneurs various types of corporate structure to start a business, one of them being a Public Shareholding Company (PSC). A PSC is a company where the capital is divided into equal shares and the shareholders liability is limited to the number of shares in the company. A Public Shareholding Company in Dubai is often referred to as a Public Joint Stock Company (PJSC).

Features of a Public Shareholding Company in Dubai

  • A PJSC must have at least 10 founding members
  • The management should be vested in a board of directors consisting of a minimum of three to maximum of fifteen people whose term of office may not exceed three years
  • The chairman and the majority of the directors in a public shareholding company must be a UAE national and should hold at least 51% of the shares in the company
  • The minimum capital threshold for starting a shareholding company in Dubai is AED 10 million
  • In most of the cases, a local banking, financial or insurance ventures must be run as a PJSC while international companies practicing the same activities can open as a branch or a representative office in Dubai

Procedure to Start a Public Shareholding Company in Dubai

If you are new to Dubai business market it is important that you understand the concept especially when it comes to Shareholding Company.  The concept is a long standing requirement under the Commercial Companies Law of the United Arab Emirates also known as the Companies Law where every company is a shareholding company where national shareholders have 51% of share capital while foreign parties are limited to 49% ownership in the UAE companies. If one is not happy with this arrangement, they can always choose a free zone where a foreigner can have full ownership. Once you understand the primary requirement the next step is to select the right location. Having a perfect location will allow the firm to get the right customers and clients quickly to boost the business sales. After this, there are few formal requirements to be followed. They are,

  1. Select a trade name for your business. It must not resemble with the name of any existing company in the UAE. Register the name with the Companies Registrar in Dubai
  2. Get an initial approval from the Department of Economic Development (DED) in Dubai. It is an approval to initiate the registration process of the company
  3.  Fill an application form and attach all the required documents to it
  4. Submit the same to the DED for business registration
  5. The authority will look through the application and the documents and approve/disapprove depending upon the authentication
  6. If approved, you can further fill out an application to obtain license
  7. Once you get the license, you can officially start your public shareholding firm in Dubai

Documents Required to Start a Public Shareholding Firm in Dubai

  • Founder’s Agreement with Registration and Licensing Application
  • Government Approval for Business Activity
  • Prospectus of Invitation for Public Subscription
  • UAE Securities and Commodities Authority Approval for public shareholding
  • Auditors Certificate
  • Resolution from Ministry of Economy for Public Shareholding
  • Due Diligence Survey
  • 2 copies of the Project’s Feasibility Study
  • 4 copies of Memorandum and Articles of Association authenticated by Notary Public
  • Photocopies of Office Space Contract and Registered Plot Number
  • Appointed Board of Manager and Directors Written Declaration accepting appointment
  • Original Documents showing Directors Names, Date and Place of Birth, Occupation and Sample Signature

Among the many company structures in the UAE that offers the same benefits as this type, a Public Shareholding Company in Dubai holds a special preference between the foreign investors. If you are one of those wanting to start a Public Joint Stock Company in Dubai, we at Business Setup Worldwide can help you with it. Our advisors are well versed with the legal formalities and can make this process hassle free for you. Contact us today for more information.