A Private Shareholding Company in Dubai refers to a business corporation having the following characteristics:
- A non-governmental organization owns it
- 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 to subscribe to its shares. A minimum of 3 people can incorporate it. 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 too. 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.
Requirements for Setting up a Private Limited Company in Dubai
- The founders of the Company must not be less than two, except for One Person Company that must be owned. To a single legal person owned by Malika for the citizens of the State.
- That is not public floatation.
- The Company’s capital is AED (5.000.000) fully paid (100) %.
- The nominal value of the share shall not exceed 100 dirhams and not less than (1) dirhams
- In the case of entry in capital shares, it requires the evaluation of the quota in nature by a house of expertise that the Ministry is considering.
- The number of private company shareholders must not exceed (200) founder/shareholder
- The share of the citizens of the State in the capital of the Company shall not be less than (51%).
- Get the other approvals according to the nature of the business needed to practice.
- A written acknowledgment by each member of the Board of Directors of the names of the companies in which they serve as chairman or vice president. Member of the Board of Directors or Managing Director of the Department and the date of filling each of these positions. (In case the Board is appointed. With the Memorandum of Association and the Statute, otherwise, it must be submitted at the election later)
Procedure to Set up a PJSC in Dubai
The steps are -
- Decide on a trade name for the business
- Obtain preliminary approval from the Department of Economic Development (DED) Dubai, with permission from the other parties according to nature
- Decide on the business activity before applying to the Ministry
- Apply along with a set of documents to obtain the license
- Pay fees and get the license
Documents Required to Set up a PJSC in Dubai
- Founder’s Agreement with Registration and Licensing Application
- Government Approval for Business Activity
- UAE Securities and Commodities Authority Approval for Private Shareholding
- Auditors Certificate
- Resolution from Ministry of Economy for Private Shareholding
- Due Diligence Survey
- Two copies of the Project’s Feasibility Study
- Four 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
How can we help?
Dubai offers various opportunities and a lucrative market for setting up your Company. Commitbiz helps business people, entrepreneurs, and investors establish their Company in Dubai through registration, accounting, bookkeeping, and intellectual property (IP) protection services. Our experts handle the banking, visa, legal, and licensing formalities, and allow you to focus on your company vision and objectives. If you are wondering how to start a business in Dubai, do reach out to us. We’ll be happy to assist.