Public Shareholding Company in Dubai

Most business owners these days want to find the best possible opportunities to start a business. The United Arab Emirates is an important business destination for foreign investors who want to open their companies. 

One of the most important emirates, Dubai, has been shifting its gears from an oil-based economy to a service-based economy, and therefore, new companies and startups are rapidly emerging in the Middle East. 

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

Requirements of a Public Shareholding Company Setup in Dubai

A public shareholding company is a form of mainland company formation in Dubai and there are certain requirements which need to be followed such as:

  • 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 and a 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 UAE nationals and hold at least 51% of the company's shares.
  • The minimum capital threshold for starting a shareholding company in Dubai is AED 10 million.
  • In most cases, local banking, financial, or insurance ventures must be run as a PJSC, while international companies practising the same activities can open a branch or a representative office in Dubai.

Procedure to Start a Public Shareholding Company in Dubai

According to the Company Law, every company is a shareholding company, with domestic shareholders having 51% of the share capital, while foreign parties are limited to 49% ownership in the UAE companies. 

There is also the option of having complete ownership of the company if it is established in the freezone. 

The steps for incorporating a Public Shareholding Company in Dubai are:

Select a trade name for your business. It must not resemble the name of any existing company in the UAE. Register the name with the Companies Registrar in Dubai

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

Fill out an application form for a public shareholding company formation in Dubai and attach all the required documents. Then, submit the form to the DED for business registration.

Depending upon the authentication, the authority will go through the application and the documents and provide approval or disapproval. If approved, you can further fill out an application to obtain a license.

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 the Memorandum and Articles of Association authenticated by Notary Public
  • Photocopies of Office Space Contract and Registered Plot Number
  • Appointed Board of Managers 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 offer the same benefits as this type, a Public Shareholding Company in Dubai holds a special preference among foreign investors. 

If you want to start a Public Shareholding Company in Dubai, we at Business Setup Worldwide can help you with it. Our advisors are well-versed in the legal formalities and can make this process hassle-free for you. Contact us today for more information and to avail of business setup services in Dubai.

FAQs

What is a Public Shareholding Company otherwise called?

A Public Shareholding Company is otherwise called a Public Joint Stock Company.

Who will assist you in opening a Public shareholding company in Dubai?

Business Setup Worldwide will assist you in opening a Public Shareholding Company in Dubai.

To whom would you get approval to open a Public Shareholding Company?

The Department of Economic Development is responsible for approving the start of a Public Shareholding Company in Dubai.

List the basic steps to launch a company in Dubai.

The following are the basic steps to start a company in Dubai
Ø Seek expert's assistance
Ø Choose a business location
Ø Select a company name
Ø Finalize a business structure
Ø Obtain a business license
Ø Open a bank account