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.

  1. More than half of the Directors must be UAE Nationals
  2. 51% of the shares must be held by UAE Nationals
  3. 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)
  4. Management must lie in the hands of a Board of Directors, with a minimum of 3 and a maximum of 15 Directors
  5. The term of the Directors cannot exceed three years.
  6. The face value of the shares may range from AED 1 to 100
  7. 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
  8. Some of the documentation required while starting a PJSC are:
    1. Founders’ agreement
    2. Prospectus or invitation for public subscription
    3. Business plan or Feasibility study
    4. Auditors certificate
    5. Due diligence survey
    6. 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.

REQUEST A FREE CONSULTATION

I'm not a robot*