Private Shareholding Company & Public Shareholding Company

Following of the explaining of legal types firms in UAE:-

Public shareholding company:

Dubai offers various corporate structures for entrepreneurs to start a business, one of which is a Public Shareholding Company (PSC). A PSC is a corporation whose capital is divided into transferable shares of equivalent value and whose shareholders' liability is limited to the number of shares in the corporation. In Dubai, a Public Shareholding Company is also known as a Public Joint Stock Company (PJSC).

Companies involved in banking, insurance, or financial activities must be run as public shareholding companies, according to the law. Foreign banks, insurance companies, and financial institutions, on the other hand, can establish a presence in Dubai by opening a branch or representative office.

A public shareholding company can be formed by at least ten founders. A public shareholding company's Board of Directors must have a minimum of three directors and a maximum of twelve. This company's Chairman and the majority of its directors must be UAE nationals. A shareholder's liability is limited to the amount of his capital contribution. The required minimum capital is AED 10 million.

Private shareholding company:

The term "Private Shareholding Company" refers to the possession of a large business corporation in two distinct ways: first, by non-governmental organizations, and second, by a relatively small number of holders who do not trade the stock publicly. A private shareholding company in the UAE must have at least three members. In the UAE, private shareholding companies, unlike a public shareholding company, do not allow the public to subscribe for shares. AED 2 million (US $544,959) is the minimum share capital required to establish a private shareholding company. In a private shareholding, the Chairman, and the majority of the Directors.

All of the terms that apply to a public shareholding company also apply to a private shareholding company. To form it, one must arrange for the preparation of a founders' agreement, a prospectus or invitation for public subscription supported by an overall business plan or feasibility study and an auditor's certificate, a due diligence survey, a memorandum and articles of association, and a memorandum and articles of association

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