Private Shareholding Company Formation Services in Dubai, UAE

Private Shareholding Company Formation Services in Dubai, UAE

Are you considering establishing a Private Shareholding Company? Look no further! Dubai today ranks among the world's most prestigious and coveted business settings, which are liberal, rewarding, and enjoyable to live in, thanks to the UAE government's diligent efforts.

A Private Shareholding Company is formed by at least three people. Unlike a public shareholding corporation, a private shareholding business cannot demand the general public to subscribe to its shares. A private shareholding corporation must have a minimum share capital of AED 2 million to be formed. The Chairman and most Directors must be UAE nationals in a private shareholding firm. Thus, we at Dhanguard specialize in delivering comprehensive Private Shareholding Company Formation Services tailored to your needs. With expertise in the UAE market, we offer a seamless and efficient process for setting up your Private Shareholding Company. This page will guide you through the critical aspects of Private Shareholding Company Formation in Dubai and the UAE.

What is a "Private Shareholding Company"?

The term "private shareholding company setup " can refer to two different types of ownership of a large corporation:

• First, ownership by non-governmental groups, and second, ownership of the company's shares by a relatively limited number of holders who do not trade the stock openly.

• In the United Arab Emirates, a private shareholding company must have at least three members. The public cannot subscribe to shares in a private shareholding company in the United Arab Emirates.

• Three or more people form a private shareholding company.

• Unlike a public shareholding corporation, a personal shareholding business cannot solicit the general public to subscribe to its shares.

• The Chairman and most Directors must be UAE nationals in a private shareholding firm.

A Private Shareholding Company's Characteristics

In Dubai, a private shareholding company should have the following characteristics:

• A private shareholding company in the UAE is required to have a minimum of three owners.

• At most (200) founders/shareholders can own stock in a private company.

• A private shareholding company must have at least 51% UAE citizens as shareholders; foreigners or locals may hold the remaining 49%.

• Dubai requires a private shareholding organization with a minimum capital of AED 2,000,000.

• The nominal value of the shares shall be at least AED 1 and shall not exceed AED 100.

Benefits of a Private Shareholding Corporation

Several benefits are linked to a Private Shareholding Company in Dubai, which are mentioned below for a better understanding.

• A private shareholding corporation's shareholders are generally not accountable for any debts incurred, or judgements entered against it. Shareholders are merely putting their money into the company.

• Private shareholding corporations may raise additional funds by selling their stock.

• Corporations may deduct benefits provided to employees and executives.

• Some businesses may qualify for company status, which exempts them from federal income taxes except on certain capital gains and passive income.

Why Choose Dubai for Private Shareholding Company Formation?

Dubai, one of the seven emirates of the United Arab Emirates, has become a global business hub known for its strategic location, business-friendly environment, and tax advantages. 

Here are some compelling reasons to choose Dubai for your Private Shareholding Company setup:

1. Strategic Location: Dubai's proximity to both Europe and Asia makes it an ideal gateway for businesses looking to expand internationally.

2. Tax Benefits: Dubai offers tax advantages, including zero corporate and personal income tax, making it a beautiful destination for investors.

3. Stable Economy: Dubai boasts a tough and thriving economy with a strong infrastructure, well-established financial institutions, and excellent connectivity.

4. Business-Friendly Regulations: The UAE government has implemented investor-friendly regulations, making establishing and operating businesses easier and more efficient.

Dubai's requirements for establishing a private shareholding company

Some conditions to open  Private Shareholding Company in Dubai are as follows:

• A private shareholding corporation in Dubai can only be created with the Ministry of Economy's approval.

• Forming a Private Joint-Stock Company is permissible for any commercial or industrial enterprise. Professional pursuits do not fit with this legal structure.

• Partners of any nationality can own a private shareholding firm that complies with DED business standards.

• A Private Shareholding Company (Private Joint-Stock Company) is owned by UAE nationals at least to the extent of 51% and by GCC nationals to the extent of 100%. 

• The trade name must be appropriate for the company's business. As a result, trade names must contain the names of at least one or more partners and the qualifier "Private Shareholding Company."

• According to DED business legislation, a private partnership corporation must have an appointed management.

Private Shareholding Company Formation in Dubai, UAE

Setting up a Private Shareholding Company in Dubai involves several steps and legal requirements. Our expert team will guide you through the process to ensure a smooth and hassle-free experience:

1. Business Plan: Start by developing a comprehensive business plan that outlines your objectives, business activities, and financial projections.

2. Name Reservation: Choose a unique name for your company and get it approved by the Department of Economic Development (DED).

3. Shareholder Agreement: Draft and execute a shareholder agreement outlining each shareholder's rights and responsibilities.

4. Capital Requirements: Ensure you meet the minimum share capital requirements, which vary depending on the business activity and location within Dubai.

5. Registration with DED: Submit all necessary documents to the DED, including the business plan, shareholder agreement, and proof of capital.

6. Approvals and Licensing: Obtain any additional permissions and licenses required for your business activity, such as industry-specific permits.

7. Office Space: Secure suitable office space for your company per DED regulations.

8. Visa and Residency: Process visa applications for shareholders and employees, if needed.

9. Operations Commencement: Once all approvals are in place, you can start operating your Private Shareholding Company in Duabi.

10. Bank Account: Open a corporate bank account in Dubai and deposit the share capital.

A Private Shareholding Company in the UAE should meet the below-mentioned criteria-

• A non-governmental group owns it.

• Its stock is held by a smaller number of people who are not permitted to exchange it publicly.

• A Private Shareholding Company, unlike a Public Shareholding Company, cannot solicit the general public to subscribe to its shares.

• AED 2 million is the minimum capital necessary to form a private shareholding company in Dubai.

• Aside from the conditions listed above, all the terms that apply to a public shareholding business also apply to a private company.

• To establish it, you'll need to create a founders' agreement, a prospectus (or call for public subscription) accompanied by an overall business plan or feasibility study and an auditor's certificate, a due diligence survey, and a memorandum and articles of association.

Private Shareholding Company Capital Requirements

• The partners must each invest a minimum of AED 5,000,000 in the company.

• The issued shares' nominal value is entirely paid up.

• A period of at least two fiscal years has passed.

• The corporation has net earnings distributable to shareholders for the two years preceding the application for conversion, with an average value of not less than 10% of the capital.

• Most shareholders representing at least three-quarters of the company's capital approve a resolution of the extraordinary assembly for the company's conversion.

What are the documents required to start a Private Shareholding Company?

1. Founder's Agreement with Application for Registration and Licensing

2. Approval of a Business Activity by the Government

3. Approval by the UAE Securities and Commodities Authority for Private Shareholding

4. Certificate of Auditors

5. Private Shareholding Resolution from the Ministry of Economy

6. Survey of Due Diligence

7. Two copies of the Feasibility Study for the Project

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

9. Photocopies of the Contract for Office Space and the Registered Plot Number

10. Written Acceptance of Appointment by the Appointed Board of Managers and Directors

11. Original documents containing the directors' names, dates and places of birth, occupations, and a sample signature.

Why Choose Our Services?

When you partner with our business consultancy firm for Private Shareholding Company Formation in Dubai, you benefit from:

• Expert Guidance: Our experienced professionals will provide expert guidance at every process step.

• Efficiency: We streamline the process, minimizing delays and ensuring prompt company formation.

• Compliance: We guarantee your company adheres to all legal and regulatory requirements in Dubai and the UAE.

• Tailored Solutions: We customize our services to meet your business needs, providing a personalized experience.

• Ongoing Support: We offer continuous support even after your company is established, helping you navigate any challenges that may arise.

Start your own Private Shareholding Company in the UAE Today!

Dubai offers a diverse range of prospects and a lucrative market to establish your business. Dhanguard provides registration, accounting, bookeeping, and intellectual property (IP) protection services to enable business people, entrepreneurs, and investors to develop their companies in Dubai. Our professionals will take care of the banking, visa, legal, and licensing details, allowing you to focus on your company's vision and goals. Please contact us if you have any questions about starting a business in Dubai. We'll be glad to help. We provide 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.