What is the Procedure for starting a Public Shareholding Company in Dubai?
Are you confused about what kind of business will be suitable for you to Set up in Dubai? Well, a Public shareholding Company can be the one, as Dubai is a hub of business and a lot of investors have invested in the Public Shareholding Company and has gained success in this business. Various corporate opportunities are offered in Dubai to set up a company, one of them being a Public Shareholding Company. In this business setup, the capital is divided into equal shares and the liability of the shareholders is limited to the number of shares in the company.
What is a Public Shareholding Company?
A Public Shareholding Company which is also known as Public Joint Stock Company where at least ten founding members have the power to manage the firm. The board of directors consists of three to fifteen persons whose term of office is for three years. The founder members may only hold 35% of the share capital, with the remainder required to be offered to the public. In this business, the capital is divided into equal shares among the shareholders, and their respective number of shares limits each shareholder's liability.
What are the requirements to set up a Public Shareholding Company in Dubai?
Here is the list of requirements of a Public Shareholding Company for business set up in Dubai:
The first criteria of a Public Shareholding Company are that it must have at least 10 founding members. The management should be in the power and the board of directors consists of a minimum of three to a maximum of fifteen people whose term of office is for 3 years. The chairman and the majority of the directors in a public shareholding company must be UAE national and should hold at least 51% of the shares in the company. A local banking, financial, or insurance venture must be run as a Public Shareholding Company while international companies practicing investment activities can open a branch or a representative office in Dubai.Capital Investment Required for Public Shareholding Company in Dubai
For setting up a Public Shareholding Company in Dubai the minimum capital required is AED 10million with a nominal face value of AED 1 to 100. The minimum capital required for a banking company is AED 40 million and 25 million for insurance and investment companies.
Other Pre-Requisites of a Public Shareholding Company Setup in Dubai
For a public shareholding company formation in Dubai, the other prerequisites are;
The preparation of a founders' agreement is required. A prospectus is to be created. An invitation for the public subscription supported by an overall business plan is required. A feasibility study is needed. An auditor's certificate. A due diligence survey. A memorandum is needed along with it. Lastly, an article of association is required.What are the Documents Required to Set up a Public Shareholding Company in Dubai?
The documents required to set up a Public Shareholding Company are:
The Founder's Agreement with Registration and Licensing Application is needed. Government Approval is required for the Business Activity. The prospectus of Invitation for Public Subscription. The UAE Securities and Commodities Authority Approval for a public shareholding company is required. An auditors certificate is needed. Resolution from the Ministry of Economy for Public Shareholding is required. A Due Diligence Survey. Two copies of the Project's Feasibility Study are needed. Four copies of Memorandum and Articles of Association authenticated by Notary Public are required. The Photocopies of Office Space Contract and Registered Plot Number are needed. The Appointed Board of Manager and Directors Written Declaration accepting appointment is required. All the original Documents showing Directors Names, Date and Place of Birth, Occupation, and Sample Signature are needed.Also Read: What are the types of business entities currently operating?
What is the procedure to Set up a Public Shareholding Company in Dubai?
The step-by-step guide to open a Public Shareholding Company in Dubai is Explained below.
1. Select a trading name for the business
The very first thing which a person needs to do is to select the name of the company. The name should sound attractive and professional so that the customers are easily attracted to the company.
2. Need an initial approval from the DED Dubai
After choosing the name of the business the second thing which is to be done is the initial approval from DED (Department of Economic Development) is required with the permission of other parties. This is mandatory in order to start a business in Dubai.
3. Submit the required documents for licensing
After getting the approval there are certain documents required which are mentioned below. These documents are mandatory to obtain a license for starting a company formation in Dubai.
4. Pay fees and obtain the business license
A minimal fee is required to get the license. This fee has to be paid before getting the license.
All about Taxation for Company Formation in Dubai
The UAE Government does not impose an income tax on companies or any citizen of the country. However, foreigners staying as registered citizens in that country and making profits, have to pay taxes to the government.
Dubai has also signed some agreements and treaties related to double tax avoidance so that foreign investors can get a conducive Business Environment in Dubai in terms of Taxation.
Is there any VAT system in Dubai?
There is no VAT system available in Dubai. Currently, UAE does not have a Federal Corporate Tax Regime. The taxation depends on Emirate to emirate basis. However, in reality, CIT (Commissioner of Income-tax) has been imposed only to the business entities engaged in Oil & Gas Exploration at the rate of 55%. Also, a 20% tax rate is imposed on the taxable income of branches of the foreign bank.
How Danburite Corporate Can Assist You?
The Company Formation in Dubai comes with its share of benefits. Danburite Corporate helps foreign investors to set up their dream businesses in Dubai. It acts as a one-stop solution provider taking care of company registration, accounting, taxation, as well as corporate secretarial services. If you are looking for a trustworthy partner to set up a company in Dubai, do Contact Us. We will be glad to assist you!