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Documents Require to Setup a Public Shareholding Company in UAE

By Shivangi - 20 Dec 2021 Last Updated: 06 May 2022
Documents Require to Setup a Public Shareholding Company in UAE

A Public Shareholding Company in Dubai must have at least 10 founding members, and its management must be entrusted to a board of directors comprising of 3 to 15 individuals with terms of office no more than 3 years. The founders can only own 35% of the stock, with the balance needing to be sold to the general public. The Chairman and the majority of the directors of a public shareholding company must be UAE nationals. In this blog, we'll look at the documentation needed to form a Public Shareholding Company.

What is Public Shareholding Company?

A Public Shareholding Company, sometimes known as a Public Joint-Stock Company, is a business that divides its capital into equal shares. Each shareholder's responsibility is limited by the amount of shares they own. In Dubai, a Public Shareholding Company must have at least ten founding members, and its management must be delegated to a board of directors comprised of three to fifteen individuals whose terms of office cannot exceed three years. Only 35% of the share capital can be held by the founders, with the rest having to be sold to the general public. In a public shareholding firm, the Chairman and the majority of the directors must be UAE nationals.

AED 10 million (about $2.7 million) in capital is required to establish a public shareholding company in Dubai, with a nominal face value of AED 1 to 100. The minimum capital requirement for a banking firm is AED 40 million, whereas the minimum capital requirement for insurance and investment organisations is AED 25 million. The preparation of a founders' agreement, a prospectus, or 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 are the other requirements to setup a public shareholding company in Dubai.

Banking, Insurance, and other financial organisations must be administered as public shareholding companies, according to the law. Foreign banks, insurance companies, and commercial firms, on the other hand, can build a Branch or Representative Office in Dubai.

Documents Require to Setup a Public Shareholding Company in UAE

The Following are the Documents require to setup a Public Shareholding Company Formation:

Founder's Agreement with Application for Registration and Licensing

A Founders' Agreement is a document that governs the business connections of a company's founders. Each founder's rights, responsibilities, liabilities, and obligations are outlined in the Agreement.

Approval of a Business Activity by the Government

Business activity is the basis for selecting the legal form and type of licence, whether commercial, industrial or professional, etc. There are six types of licences (industrial, commercial, professional, tourism, agricultural and occupational).

Invitation to Public Subscription Prospectus

You need to Advertise for Public Subscription Prospectus

Approval from the UAE Securities and Commodities Authority

Getting Approval from the UAE Securities and Commodities Authority for public shareholding is must.

Certificate of Auditors

Getting Certificate of Auditors for the Company Formation.

Notary Public authentication of four copies of the Memorandum and Articles of Association

A completed and signed Memorandum of Association (MoA) or a local service agent agreement (LSA) of the business is necessary, depending on the legal form of the organisation. The following business legal forms require a memorandum of association:

  • Limited partnership
  • Limited liability company
  • Public joint stock company
  • Private joint stock company

Other Documents Required

  • Public Shareholding Resolution from the Ministry of Economy
  • Survey of Due Diligence
  • Two versions of the Feasibility Study for the Project
  • Photocopies of the Contract for Office Space and the Registered Plot Number
  • Managers and Directors have been appointed to the Board of Directors.
  • Acceptance of Appointment in Writing Original documents containing the names of the directors, their dates and places of birth, their occupations, and a sample signature.

Requirements to Setup a Public Shareholding Company in Dubai

The Following are the requirements to Setup a Public Shareholding Company in Dubai:

  • For incorporation, a minimum of ten business shareholders is necessary.
  • Three to fifteen directors are required for a management board.
  • The term of office for the management board cannot be longer than three years.
  • The primary shareholders, or founding members, are entitled to 35% of the share capital, with the remaining 75% available to the general public.
  • The Chairman and a majority of the management board must be Emiratis, and the UAE national must possess 51 percent of the shares.
  • Local banking, insurance, and financial initiatives must, in most situations, be conducted as a Public Shareholding Company, although international companies engaged in similar operations can create a branch or a representative office in Dubai.

Read More: How to Start General Trading Company in Dubai?

Procedure to Setup a Public Shareholding Company in UAE

The following are the processes to forming a Public Shareholding Company in Dubai:

Choose a Trade Name for your Company

The very first thing a person must do is choose a Trade Name. Customers would be easily attracted to the company if the name is appealing and professional.

Obtain preliminary approval from Dubai's Department of Economic Development (DED)

After deciding on a business name, the next step is to get preliminary approval from the DED (Department of Economic Development), as well as permission from other parties. This is a requirement for starting a business in Dubai.

Licensing Paperwork must be submitted

Regarding the approval, some documents are required, which are listed below. These documents are required in order to receive a licence for forming a company in Dubai.

Pay the fees and get your Business Licence

To obtain the licence, you must pay a small price. This price must be paid before the licence may be obtained.

Conclusion

Incorporating a business in Dubai has a number of advantages. Dhanguard will assist with foreign investors in establishing their dream firms in Dubai, serving as a one-stop shop for company formation, accounting, bookkeeping, taxation, and corporate secretarial services. Please contact us for assistance if you are seeking for a dependable partner to help you establish a Dubai corporation. Dhanguard with our Team will assist you to Setup a Public Shareholding Company in Dubai.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

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