How to open a private joint stock company in the UAE

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If you decide to register a company in the UAE, for some large projects, it may be preferable to register a private joint stock company in the UAE.

A private joint stock company in the UAE is a partnership in which there can be from 2 to 200 partners. The minimum share capital of a private joint stock company is 5,000,000 dirhams (1,363,000 dollars). A firm can be created only for a commercial or industrial type of business, such a firm can not be registered for a professional activity.

A private joint stock company of the UAE can belong to partners with any citizenship. A legal entity can also register a private joint stock company in the United Arab Emirates.

To register a private joint stock company in the UAE, you must obtain approval from the Ministry of Economy. Moreover, the process of approval of the Ministry of Economics consists of three stages:

The first stage is the study of an application for the registration of a private joint stock company in the UAE. This can take up to 15 days.

At this stage, the following documents will be required:

  • Certificate of reservation of the trade name and initial approval of the competent local authority.
  • Memorandum (memorandum of association) and charter.
  • Economic feasibility of the project and terms of implementation.
  • Copies of UAE identity cards for all founders in the case of individuals. Extracts from the commercial register in case the founders are legal entities.

The company must have at least two founders. Shares can not be placed publicly.          The number of founders / shareholders should not exceed two hundred.                        The share of UAE citizens in the company’s capital should not be less than 51%.

It is necessary to obtain other statements in accordance with the nature of the company’s activities.

The second stage is the announcement of the registration of a private joint stock company in the UAE. This stage can take up to about 5 days.

At this stage, the following documents will be required:

  • Information about the deposit of capital in the bank.
  • Memorandum, certified by a notary, and the approved charter of the company.
  • Confirmation of the receipt of all capital by an external auditor, and some others.

At this stage, it is necessary to obtain prior approval from the competent local authorities for the registration of the company in the UAE with the consent of the other parties, which may be required depending on the nature of the business. For example, insurance business will require approval from the insurance agency, for banking activities, approval from the Central Bank of the UAE will be required.

The third stage is the registration of a private joint-stock company in the UAE. This stage usually takes only one day.

The application must be filed within one month from the date of issuance of the commercial license.

It shoule be noted, that when registering a company in the UAE you will get the right to obtain a UAE resident visa. Also you can get visas for your foreign employees.