Public Joint Stock Company in Dubai

Dubai’s thriving business landscape offers a wide range of opportunities for people who seek to start their business. One of the most attractive options in that regard is setting up a Public Joint Stock Company (PJSC) in Dubai. This write-up empowers you to open a PJSC in Dubai and plan your growth journey.

What is a Public Joint Stock Company in Dubai?

A public joint stock company, also known as a public shareholding company, is a business organisation in which the capital is divided into equal shares. It is mandatory to have 10 founding members, and each shareholder’s liability is limited to the number of shares they hold in the company.

Key Features of PJSC in Dubai

Before setting up a PJSC in Dubai, you need to know about the key features:

• 51% of the shares must be owned by a UAE national.
• The chairman, directors and all the shareholders must be UAE nationals.
• In most cases, local banking, insurance, and financial ventures must be run as a PJSC.
• Founding members can hold 35% of the company’s shares, and the remaining shares must be publicly traded. 
• A company should have a board of directors consisting of 3 to 15 members with their term not exceeding 3 years.

Benefits of Forming a Public Joint Stock Company in Dubai

Let us now understand the benefits of PJSC business setup in Dubai:

• Limited Liability

The shareholders are not liable for the number of shares they own in the company. 

• Easy to Raise Funds

Compared to other business structures, a public joint stock company can easily raise capital and accelerate its growth.

• Perpetual Existence

Membership changes do not impact the company’s existence. It ensures continuity for the company. 

• Large-Scale Operations

A public shareholding company in Dubai can engage in large-scale and extensive business operations given their ability to raise capital.

• Easy Transferability of Shares 

Unlike other business structures, the shares of public joint stock companies in Dubai can be transferred easily.

How to Start a Public Shareholding Company in Dubai?

The steps which need to be followed for starting a PJSC in Dubai are discussed below:

• Conduct Market Research

To start any business, it is important to do thorough market research to understand the competitor's strategy and the local trends.

• Decide a Trade Name

Choose a trade name for your company. A chosen name should adhere to governmental norms.

• Decide a Business Activity

Pick your relevant business activity and niche. Being transparent about your business activity is the key to success.

• Avail Licensing Documents

Obtain all necessary licensing documents from the relevant authorities to commence business activities in the Emirate.

• Initial Approval

Obtain initial approval from the Department of Economic Development, Dubai, and other relevant authorities.

• Pay the Fees

Pay the required fees to get the license and start your business in Dubai.

Documents Required to Start a Public Joint Stock Company in Dubai

Here's your essential checklist to get your PJSC in Dubai off the ground:

• An auditor’s certificate.
• Approval from legal counsel.
• 2 copies of the project analysis.
• Approval from the UAE securities.
• Public subscription invitation (Prospectus).
• A resolution from the economic department.
• Appointment letters of the board of directors.
• Duly notarised Memorandum of Association (4 copies).
• Photocopies of address proof (lease/rental agreement).
• Approval from commodities authority for a public shareholding company in Dubai.
• Founders and shareholders have detailed agreements with all the necessary details, such as registration and licensing applications.
• A document that contains all the details about shareholders and directors, including their names, date of birth, place of birth, and professional background.

How can Commitbiz help?

Commitbiz can be your one-stop solution for setting up a company in Dubai. company formation can be straightforward when you have experts by your side to guide you. Contact us in case you have doubts, and let us navigate you through the process of setting up your Public Joint Stock Company in Dubai.