Types of business entities in Dubai

Types of business entities in Dubai

The kinds of companies that are allowed to build in the UAE are a viable reason why foreign investors visit Dubai. Indeed, Dubai has one of the most flexible rules in forming a company, ranging from a basic ownership arrangement to a far more complex corporate form and a structure of the free zone. Our consultants would support you if you would like to know more about starting up a RAKEZ company setup.

Dubai Corporate Entities

The Economic Development Department develops suitable regulatory structures for companies located in Dubai. The laws and rules for each of them vary accordingly and the designation depends on the ownership of the company. In the Dubai Emirate, companies are subject to Federal Law No. 8 of 1984. The new corporation would be one of the seven organizational systems.

Joint Stock Business Public

PJSC needs to be formed on behalf of third parties in conjunction with insurance, finance, and investment ventures. The share capital specifications in Dubai are minimum of ten million AED. The provision of at least 10 promoter’s shareholders does not apply to a government entity as co-promoter. For general public subscription, a minimum of 55% of the share capital shall be sold. Promoters shall subscribe at least 20% but shall be limited to a maximum of 45% of the equity capital of the company.

Private equity company private equity

The minimum prerequisite is AED two million for companies founded in Dubai. PSC share cannot be sold to the general public and is subject to a PJSC coverage, as well as other laws that apply to PJSC shall also apply to a PSC. The minimum share capital requirement is AED two million for shares of PSC.

A company with limited liability

Any legal practice other than insurance, banking, and fund management can be exercised by a limited liability partnership on behalf of third parties. The preparation of companies in Dubai requires a minimum of two members but restricts the shareholder ceiling to fifty. There is no recommended minimum equity capital. The developers could determine the stock’s equity and interest. This business can be established in the Shams free zone.