Companies in Dubai are of various types, having different Keeping the mind the activities that your business will be carrying out, you need to choose your type from different legal forms offered to companies to help them establish, grow and prosper.
This is the type of business which is 100% owned by an individual who has complete control over every operation and has authority over 100% shares of any profits. Also, His complete authority means complete liability. All the financial duties and debts are liable to the owner. An individual of any nationality can own a professional-type sole proprietorship.
Civil companies are set up by recognized professionals such as surgeons, doctors, accountants, engineers and lawyers in UAE. Activities in the business are allowed to perform only by professional experts and the company can have partners who own 100% shares. For a foreign company to invest in a civil company, it is necessary for that to be engaged in same type of business activity.
Limited Liability Company
One of the most popular forms of business setup in Dubai is LLC or Limited Liability Company. Here, Maximum 50 and minimum 2 are permitted to invest-in and become liable to their extent of shares only – profit and loss equally. Apart from the banking sector and professional business, LLC company in dubai are also allowed to conduct commercial and industrial business activity in the jurisdiction.
Private Shareholding Company
Formed through a partnership of a minimum of AED 2,000,000 from 3 investors at least, Private shareholding is another option for company formation in Dubai. It is also termed a Private Joint-stock company. Being a legal structure, This company is compatible with every kind of commercial and industrial activity. Under certain conditions, It is permitted for the venture to be converted to a public company after a minimum time of 2 years, however, the stocks of the business cannot be opened for the public.
Public shareholding company
Public Shareholding company can be defined as a legal entity with a capital of a minimum AED 10,000,000. The amount is transferable in shares of equal value. Shareholders are liable only to the extent of their capital. Things to keep in mind while incorporation include that the name must be different and should not have taken from any partnering investors. except if the name is a patent of a shareholder or if the name is entitled to store belonging to the shareholder. This also means applying “Public Shareholding Company” in its trade name and corporate identity. Total number of directors, their designation and service terms are decided by articles of association.
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