A Public Shareholding Company, also called Public Joint Stock Company (PJSC) helps create large enterprises that have complex operations and require significant capital. Here the capital is divided into equal-value shares that can be held by public, where the liability of the shareholder is only limited to the number of shares held by him/her.
There are various criteria for, or restrictions while establishing a PJSC.
- More than half of the Directors must be UAE Nationals
- 51% of the shares must be held by UAE Nationals
- The company must have at-least 10 Founder Members who can hold a maximum of 35% of the shares (remaining 65% is offered to the public)
- Management must lie in the hands of a Board of Directors, with a minimum of 3 and a maximum of 15 Directors
- The term of the Directors cannot exceed three years.
- The face value of the shares may range from AED 1 to 100
- Minimum capital required to set up the entity is AED 25 million for Insurance & Investment companies, AED 10 million for a Banking concern and AED 10 million for any other business
- Some of the documentation required while starting a PJSC are:
- Founders’ agreement
- Prospectus or invitation for public subscription
- Business plan or Feasibility study
- Auditors certificate
- Due diligence survey
- Memorandum and articles of association
General note: There may be slight variations in the Terms & Conditions for setting up the company in Dubai, as against rest of UAE. Please consult CSU for more details.