A private shareholding company in Dubai refers to a business corporation having the following characteristics:
- It is owned by a non-governmental organization
- Its stocks are held by a relatively fewer number of people who are not allowed to trade the stock publicly
Unlike a public shareholding company, a private shareholding company cannot invite the public for subscribing in its shares. It can be incorporated by a minimum of 3 people. The minimum capital required to incorporate a private shareholding company in Dubai is AED 2 million.
Apart from the above-stated stipulations, all the terms of a public shareholding company apply to a private shareholding company as well. To form it, one needs to arrange for the preparation of a founders’ agreement, a prospectus or invitation for public subscription supported by an overall business plan or feasibility study and an auditor’s certificate, a due diligence survey, a memorandum and articles of association.
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