Business Setup

Public Shareholding Company Formation in Dubai, UAE

public shareholding company in Dubai

A Public Shareholding Company, also known as a Public Joint-Stock Company (PJSC), divides its capital into equal shares. Banking, insurance, and financial businesses fall under this category. However, international banks, insurance, and financial firms can establish a presence in Dubai by opening branches or representative offices with Bytes, facilitating Public Shareholding Company Formation in Dubai. Contact us today to learn more.

What is a Public Shareholding Company?

A Public Shareholding Company, also known as a PJSC (public joint stock company), is a type of company where the capital is divided into equal shares, and each shareholder’s liability is limited to their respective number of shares.

For a Public Joint Stock Company in Dubai or elsewhere, it is necessary to have a minimum of ten founding members. The company’s management is entrusted to a board of directors comprising 3 to 15 individuals, with a maximum term of three years. The founding members can hold only up to 35% of the share capital, while the remaining shares must be offered to the public.

In a public shareholding company, the Chairman and a majority of the directors must be UAE nationals.

According to the law, banking, insurance, and other financial companies are required to operate as public shareholding companies.

Set Up a PJSC in Dubai

Benefits of Public Joint Stock Company Formation

a). Limited Liabilities

Owners’ liabilities are limited to their share ownership, safeguarding their personal assets. This feature attracts diverse investors, enhancing capital influx.

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b). Perpetual Existence

As a legal entity, a corporation’s existence remains unaffected by changes in membership, ensuring continuity beyond individual stakeholders.

c). Large-Scale Operations

Public Joint Stock Companies have ample capacity to raise substantial capital, facilitating expansive business operations.

d). Share Transferability

Shares in a Joint Stock Company can be easily transferred, promoting liquidity in investments—a contrast to limited private commitments.

e). Fundraising Efficiency

With a broader investor base, Public Joint Stock Companies can swiftly accumulate significant funds, accelerating growth and development.

Requirements for Public Shareholding Company Formation

  • Founding Members: A minimum of 10 founding members is required, with a board of directors consisting of 3-15 individuals.
  • Term Limits: The term of office for directors may not exceed three years.
  • Nationality Requirement: The Chairman and directors must be UAE nationals.
  • Minimum Capital: A minimum capital of AED 10 million is mandated, with specific requirements for banking (AED 40 million) and investment (AED 25 million) companies.

Steps to Start a Public Shareholding Company in Dubai

To start a Public Shareholding Company in Dubai, follow these steps:

  1. Choose your organization’s trade name.
  2. Obtain initial approval from the Department of Economic Development (DED), Dubai.
  3. Complete all necessary licensing documentation for permit issuance.
  4. Pay the required fees and obtain the business license.

For a stress-free PJSC formation in Dubai, consider partnering with professional business consultants like Bytes. Our experienced team is well-versed in the current regulations and can guide you through the process seamlessly.

Documents Required To Setup a Public Shareholding Company

Here’s a revised list of documents required for setting up a Public Shareholding Company in Dubai:

  • Founder’s Agreement along with Registration & Licensing Application
  • Prospectus for Public Subscription Invitation
  • Approval from UAE Securities & Commodities Authority for Public Shareholding
  • Certificate from Auditors
  • Economic Department Resolution for Public Shareholding for Ministry
  • Due Diligence Survey
  • Two copies of project feasibility analysis
  • Four copies of Memorandum and Articles of Association duly notarized
  • Structure Approval from Legal Counsel
  • Photocopies of office space lease contract and plot number report
  • Appointment of Board of Directors and Written Declaration of Appointment
  • Initial records containing director details: names, birth date, birthplace, professional background, and particulars.
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Why Set Up a Public Joint Stock Company in Dubai?

There are compelling reasons to establish a Public Joint Stock Company (PJSC) in Dubai. International investors are presented with numerous investment opportunities, and Dubai offers a reputable business environment with various legal structures for integration. Investors are attracted to the unique benefits, on-the-ground operations, freedom to explore and capitalize on market opportunities, and access to prime office space. Shareholding companies in Dubai, offering such advantages, hold a particular appeal among foreign investors seeking to establish their presence in the region.

What is difference between PSC and PJSC?

A PSC is characterized by capital divided into shares, limiting shareholders’ liability to their share ownership. In Dubai, a Public Shareholding Company is commonly known as a Public Joint Stock Company (PJSC).

What is a public joint stock company UAE?

A Public Joint Stock Company (PJSC) in the UAE is an entity where the capital is divided into shares of equal value, and partners’ liability is limited to their share in the company’s capital, as outlined in the UAE Federal Commercial Companies Law.

Hoe can Company Setup Consultants Help You?

Business incorporation in Dubai accompanies a lot of advantages. Company Setup Consultants enables foreign financial specialists to set up their Global organizations in Dubai, and go about as a one-stop arrangement supplier dealing with company enlistment, bookkeeping, accounting, tax assessment, and corporate secretarial administrations.

In the event that you are searching for a solid accomplice to set up a company in Dubai, do get in touch with us for help. Further clarification you would like to visit on www.companysetup.ae , also you can find relevant information on There!

For further information and assistance on how to set up a Public Shareholding Company Formation in Dubai, UAE. To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.

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