Ajman is one of the Emirates in the UAE that offers unmatched road connectivity that makes it easily accessible from different parts of the country. It generates its GDP from fisheries, trade, and agriculture and further boasts of a robust industrial area, construction, and commercial activities that facilitate its development and economic growth. Investors and business persons worldwide prefer Ajman as their location to set up a business in the UAE.
The process of registering a business in Ajman includes choosing a legal form of set up. One of the corporate entities includes establishing a public or private shareholding company.
Public Shareholding Company in Ajman
Public Joint Stock Company (PJSC) is defined as a business whose Capital is divided into negotiable shares of equal value. A partner therein shall be liable only to the extent of his share in the company's assets.
Conditions to Open a Public Shareholding Company in Ajman
- The company name must be taken from its purpose. It could not be the name of a natural person unless the company's purpose were to invest a patent registered under the name of this person if the company at incorporation or consequently owns a shop and took its name to be the Busines name. In all cases, the phrase "Public Joint Stock Company" should be added to the company name. The Public Joint Stock Company can not bear the name of any other company or a similar name. Otherwise, the other company may require the competent administrative or legal authority to obligate the company to hold such a name to change it to a different name.
- Company capital needs to be adequate to achieve the purpose of its incorporation. In all cases, the Capital can not be less than thirty million dirhams.
- He shall be deemed a founder of anyone who signs the initial Memorandum and Articles of the Association to assume the liability arising from that place. The company's incorporation may be allowed only if the number of founders is not less than five. However, the Federal Government or the Governments of the respective member-Emirate may independently set up a company. They may involve several capital subscribers less than that reserved in the preceding sub-clause.
- The founders must elect a panel inter se comprising a minimum of three and a maximum of five members to finalize establishment formalities with the concerned authorities.
- Founders must subscribe to a minimum of 30% and a maximum of 70% of Association's Capital, and shall, before the publication of the subscription announcement, pay the percentage needed to be paid up by the founders for each share at subscription time. Before the invitation for public subscription is made, the founders must provide the Ministry and the concerned authority with a bank certificate to the effect that payment of the percentage mentioned above was made thereby.
- The Capital of the company shall comprise equal shares. The nominal value of each share shall be not less than one dirham, and not more than one hundred dirhams. Upon registration of the company, it is not allowed to issue shares at a lower or higher price than the nominal value plus issue charges. All company shares shall maintain equal rights and obligations.
- Shares issued shall be nominative and transferable. It is not allowed to cause their issue to bearer. Form and term of the profit coupons shall be determined by the Articles of Association and may be issued as nominal or to bearer.
Private Shareholding Company in Ajman
Several founders, not less than three, may set up a private joint-stock company among themselves. Unlike a Public Shareholding Company, a Private Shareholding Company cannot invite the public to subscribe to its shares. The minimum share capital to form a private shareholding company is AED 2 million. (US $ 544,959).
Conditions of Open a Private Joint Stock Company in Ajman
- Whose shares are not offered for public subscription and they may subscribe to the full amount of the Capital which not be less than five million dirhams
- Except for provisions concerning public subscription, all prerequisites contained herein relating to public joint-stock shall apply to private joint-stock shall apply to private joint-stock companies.
- A private joint-stock company may be converted into a public joint-stock company if satisfying the following obligations:
- The nominal value of issued shares must be paid up in full.
- The company must have been more than two financial years old.
- During the two years preceding the application for conversion, the company must have realized net profits distributable to other shareholders at an average of not less than ten percent of its Capital.
- The resolution calling for the company's conversion is adopted by a majority of three-quarters of the company's Capital in the Extra-ordinary General Meeting.
Procedure to Set up a Public/Private Shareholding Company in Ajman
The steps to establish a business in Ajman are -
- Select the business activity to get the license
- Finalize a trading name for the business
- Get an initial approval from the Ajman Department of Economic Development (DED)
- Submit the required documents to the authorities
- Get additional approvals if necessary.
- Pay fees and obtain the license.
How can we help?
To complete all these steps and processes, if one needs a helping hand from an expert in Public/Private Shareholding company formation in Ajman, we at Commitbiz will provide you with all the assistance. Our business setup consultants will guide you step by step to make important business-related decisions and also make you aware of the complete procedures for incorporating your business. Contact us today.