Private Shareholding Company Formation in Dubai

A private shareholding company in Dubai plays a major role in the Emirate’s business atmosphere. It provides entrepreneurs like you with a business structure that combines the benefits of private ownership with the ability to raise capital through share offerings.

This type of company is defined by its ownership structure, in which shares are held by individuals or bodies instead of being traded publicly. By setting up a private shareholding company in Dubai, you are guaranteed the privacy of company information and a myriad of investment opportunities.

Requirements for Setting up a Private Shareholding Company in Dubai

Before you incorporate such a company, it is vital for you to understand the conditions that are needed to be fulfilled:

  1. The company must have a minimum of three shareholders.
  2. The majority of the shareholders and directors need to be UAE citizens or Emiratis.
  3. The public is not allowed to purchase shares.
  4. The value of a company’s shares must be in the range of  1 to 100 AED.
  5. The core founders must invest a minimum of 1 million AED in the paid-up capital.
  6. A minimum share capital is needed to start a private shareholding company in Dubai.

Documents Required to Incorporate a Private Shareholding Company in UAE

Before getting into the steps of setting up a private shareholding company in UAE, certain documents need to be submitted with the application-

  • Due Diligence Survey
  • Copy of Office Space Contract
  • Founders Agreement with Registration 
  • Notarised Memorandum of Association (MoA)
  • A mandate from the Ministry of Economy for Private Shareholding
  • Information of directors like their name, occupation, place of birth, signature
  • Written declaration by the board of managers and directors accepting the appointment.

How to Start a Private Shareholding Company in Dubai?

The process of starting a private shareholding company is simple yet it requires precision. However, navigating through these steps will require the assistance of business experts from Commitbiz. Let us look at the steps -

  1. Select a Location

A private shareholding company can only be set up in the Dubai International Financial Centre (DISC). 

  1. Business Activity

The DISC freezone allows only certain business activities, so consult with experts to learn about the business activity you can pursue.

  1. Pick a Trade Name

Select a trade name for your company that draws the attention of potential customers and aligns with the business activity and the naming rules of the selected jurisdiction.

  1. Register a Company and Pay Fees

You need to register the company by submitting the application along with the necessary documents and paying the requisite fees to the authorities. 

  1. Secure Approvals and Licenses

Lastly, avail necessary approvals and licenses from the freezone authorities.

Through this immersive guide, you now have an idea about private shareholding company formation in Dubai. In case you have any queries, reach out to us and book a free consultation with our experts. They are fully capable of addressing your concerns as well as guiding you through the process of setting up a private shareholding company in Dubai.


How many types of Private Shareholding Companies are there in Dubai?

A private shareholding company has two types: Ownership by Non-governmental organisations and ownership by comparatively fewer holders, who do not publicly trade stock.

What are the ongoing compliance requirements for Private Shareholding Companies in Dubai?

A private shareholding company in Dubai must comply with ongoing obligations such as - maintaining statutory registers, annual renewal of trade licenses, submitting audited financial statements, and holding annual general meetings and filing meeting minutes.


What are the advantages of forming a Private Shareholding Company in Dubai?

Establishing a private shareholding company in Dubai offers several benefits, like limited liability for shareholders, potential for growth and expansion through investment, ability to raise capital by selling shares, and flexibility in management structure and decision-making.