Private Share Holder Company
A Private Shareholding Company (Private Joint-Stock Company) is a partnership of 2-200 individuals. The partners must invest a minimum capital of AED 5,000,000 in the business.
- P A Private Joint-Stock Company can be created for any commercial or industrial type of business. Professional activities are not allowed under this legal form.
- An approval from Ministry of Economy must be obtained to establish a private shareholding company.
- A private shareholding company can be owned by partners of any nationality in accordance with DED business regulations. A corporate body can establish and own a private shareholding company and the term “private shareholding company” shall be annexed to the company’s name.
- At least 51% of a Private Shareholding Company (Private Joint-Stock Company) must be owned by UAE Nationals, and can be owed by GCC nationals by up to 100%.
The company must have an appointed manager as per DED business regulations.
- Minimum capital of AED 5,000,000.
- While the shares of a Private Shareholding Company (Private Joint-Stock Company) cannot be offered to the public, the business can be converted to a public company two years or more after its creation, given certain conditions:
- The nominal value of the issued shares is fully paid up
- A period of not less than two financial years has expired
- During the two years preceding the application for conversion, the company achieved net profits distributable to the shareholders, the average value of which is not less than 10% of the capital
- A resolution of the extraordinary assembly for the conversion of the company is adopted by a majority of shareholders representing at least three quarters of the company’s capital
The trade name should be consistent and in proportion with the commercial activity of the firm. The firm name should be identical to the trade name. Both names must include one or more of the partners’ names and followed by the phrase “Private Shareholding Company”.
- The company can have more than one branch. Each may undertake one or all of the activities included in the main business license..
Assignment of License:
- Private shareholding company branches can be sold and waived to any party or company. The owner(s) can also change its legal form according to DED procedures.