A joint stock company in Dubai is a type of business entity which requires a minimum share capital. You can either open a public joint stock company, if there are more than 10 founding members, or a private joint stock company, for less share capital. In matters regarding the formation procedure of these entities, you can rely on the support provided by our law firm in Dubai.
How to create a joint stock company in Dubai
There are particular legal requirements for opening a private joint stock company in Dubai such as a minimum share capital of 2 million AED. The shares must be divided between at least three members and cannot be further offered to the public.
Another requirement for a private joint stock company in the UAE is to have at least 51% of the shares belonging to a local member. However in Dubai, the free zones legislation allows for 100% foreign ownership.
There are some regulations as well regarding the types of activities that a private joint stock company can perform. As such you can employ a private joint stock company for commercial or industrial activities. If you intend to conduct professional activities, you should look for another type of organization than the private joint stock company.
A public joint stock company in Dubai needs a minimum share capital of 10 million AED, and gives its members the possibility to negotiate their shares in the company. The liability of each member remains in the limit of his/her shares in the joint stock company.
You can rely on our attorneys in Dubai for support and counseling regarding the opening of a joint stock company in Dubai.
Reasons to create a joint stock company in Dubai
The joint stock company is the best structure you can employ for implementing large projects or assets. This structure allows the collection in one place of large sums of money and shareholders, which give an increased capacity for performing a profitable business in Dubai.
An important advantage of the joint stock company in Dubai is that it offers a great amount of flexibility in the distribution of profits. Moreover, through a joint stock company the borrowings from banks are easier to a larger extent, providing thus access to even greater financial resources.
We kindly invite you to contact our law firm in Dubai for all legal support you might need in the creation of a joint stock company in Dubai.