Business Setup & Planning - Incorporation

PRIVATE SHAREHOLDING COMPANY

Private Shareholding Company refers to possession of a big business corporation in two diverse behavior— first, referring to ownership by non-governmental organizations and second, referring to ownership of the company’s stock by a relatively small number of holders who do not trade the stock publicly. Private Shareholding Company in UAE is incorporated by minimum three members. Unlike public shareholding company, a Private Shareholding Company cannot invite the public for subscribing in its shares. The minimum share capital to form a Private Shareholding Company is AED 2 million. (US $ 544,959). The Chairman and majority of the Directors in a Private Shareholding Company must be UAE nationals. The Private Shareholding Company’s incorporating documents must preclude public offering of shares.

Except for the foregoing, all the provisions which apply to the public shareholding companies shall apply to the private shareholding companies, and the incorporation of the company shall be in accordance with the procedure and conditions followed in respect thereof except for the public subscription in the company’s shares.