Private Joint Stock Company
A Private Joint Stock Company is defined as an organization whose capital is divided into negotiable shares of equal value and a partner therein shall be liable only to the extent of his share in the capital of the company, in accordance with the UAE’s Commercial Companies Law (the ‘Law”). A Private Joint Stock Company has to have a minimum AED 2,000,000 share capital. Shares of a Private Joint Stock can not be offered to the public. A minimum of three founder members are required to incorporate a Private Joint Stock Company and fifty-one percent (51%) of shares shall belong to a UAE national. A Private Joint Stock Company is formed to carry out commercial or industrial business activities. A Private Joint Stock Company is not allowed to conduct professional activities.
A Private Joint-Stock Company is subject to all the rules and regulations that are applicable to Public Joint Stock Companies, except for the rules and regulations relating to public share subscription. A Private Joint Stock Company can be converted into a Public Joint Stock Company after two years of its formation by fulfilling certain requirements.
At Mimo Legal Consulting we have the expertise you need to setup your business in the UAE. We will help you to choose the right legal structure and license based on your requirements and business objectives. We can also assist you in opening your bank account and acquiring residency visas in the UAE. If you are interested in setting up your business in the UAE, please contact us for further information.