Dubai has transitioned from an oil-based economy to a service-based economy, making it a favourable destination for setting up a business. This change is also the reason why there is a rapid growth in the number of startups and businesses in the Middle East. The companies in Dubai offer entrepreneurs various corporate structures to start a business, one of which is a Public Shareholding Company (PSC).
What is a Public Shareholding Company in Dubai?
A Public Shareholding Company (PSC), also known as a Public Joint Stock Company (PJSC) in Dubai, is a corporate entity whose shares are publicly traded on a stock exchange. It is one of the primary forms of business organisation and offers distinct advantages and features compared to other corporate structures.
Requirements of a Public Joint Stock Company
A Public Shareholding Company is one of the legal structures used to incorporate a mainland company. Here is a list of the features of a Dubai PSC:
- A PSC must have at least ten founding members.
- PSCs are required to have a minimum level of paid-up capital.
- The capital requirements may depend on the nature of the business activity.
Benefits of Establishing a Public Joint Stock Company in Dubai
The Public Joint Stock Companies provide unique opportunities for investors and entrepreneurs. They are:
- The Public Shareholding company can raise its capital by allowing the company to raise significant funds for expansion and other strategic moves.
- Public shareholding companies are known for their strict regulatory requirements.
- Public shareholding companies offer shareholders liquidity, which allows investors to buy or sell shares based on market conditions.
- Shareholders in a public shareholding company can enjoy limited liability, which means their assets are protected from the company's debts and obligations).
Procedure to Start a Public Joint Stock Company in Dubai
The following steps are involved in starting PJSC in Dubai.
Conduct thorough Research and Planning
Before setting up a business, it is essential to research about the following:
- Understand the incorporation process
- Learn about the market conditions
- Explore business objectives
- Focus on the target audience
- Fix the strategic goals
Choose a Business Activity and Finalize the Trade Name
The second step is to choose the activity and trade name for your business.
Obtain the Initial Approvals
To initiate the process, you must get initial approval from the Department of Economic Development (DED).
Submit the Application Form
Fill out an application form and attach all the documents mentioned below to proceed with the Public Shareholding Company.
- 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 MOA and AOA
- 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
Application Review
Depending on the authentication, the authority will review the application. After it is approved, you can proceed with obtaining a license.
Receive the Business License
Once you get the license, you can officially start your company.
Why Choose the Assistance of BSW?
Among the different company structures in the UAE, a public shareholding company in Dubai is the preferred business structure by foreign investors. If you want to start a business, Contact us today for more information and to avail yourself of the service.
