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 an 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 Company in Dubai
The founders of the company must not be less than two, except for One Person Company or a sole proprietorship in Dubai 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)
How to Set Up a Private Shareholding Company in Dubai?
The steps for PSC business setup in Dubai are as follows:
1. Select a Trade Name and the Activity
Decide on a trading name for the business. Decide on the business activity before applying to the Ministry.
2. Get a Preliminary Approval
Obtain preliminary approval from the Department of Economic Development (DED) Dubai, with permission from the other parties according to nature.
3. Documents Required to Set Up a Private Company in Dubai
Apply along with a set of documents to obtain the license
- 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 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 the Director's Name, Date and Place of Birth, Occupation, and Sample Signature.
4. Obtain the License
Pay fees and get the license.
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What is the minimum capital of a private shareholding company?
It is DH 2 million.
What is the minimum shareholder count of a private shareholding firm?
A minimum of 3 shareholders.
Can shares of a privately held company be given to the public?
What are the requirements for a private shareholding company?
Agreement, prospectus, auditors’ certificate, sue diligence certificate etc are required.
What is the maximum amount of shareholders for a private share firm?
It should not exceed 200.