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ATBSS > Business > Company Formation

Company Formation

When it comes to company formation in Dubai, UAE, there are six different forms of companies that entrepreneurs can choose from. Each of these forms comes with their own rules and regulations. So let’s have a closer look at each of them.

Company Formation in Dubai

Company Formation Types

General partnership

When it comes to UAE Company Registration, the most important of all is certainly general partnership. This form of company incorporation is only available to the UAE nationals. The general partnership can be formed by 2 or more partners and they are solely responsible for the profit and loss of the firm, its general performance as well as for the management of the debts.

Public Shareholding Company

Public Shareholding Company is one of the most frequently chosen options for business setup in Dubai since it allows for maximum number of shareholders or participants. It is necessary that a public shareholding company includes a minimum of 10 founders. Only in cases where there some UAE government entity or person is present, the number of founders can be less than ten.

Limited Partnership

A Limited partnership company in UAE is also referred to as the Partnership in Commendams. Such a form of company incorporation in UAE is mainly comprised of two different types of partners, namely general partnerships and limited partnerships.

When it comes to a general partnership, the partners are needed to be UAE nationals and are completely liable for the debts associated with the partnership.

In case of a limited partnership, partners are accountable for its debts up to value of their contributions in the capital. Moreover, it is not possible for a limited partner to be an active part of management or have his/her name included in partnership’s name

Limited Liability Company

Plenty of business firms looking for Mainland Dubai Company Formation opt for creating a Limited Liability Company. To form this type of company, a firm should have at least 2 individuals but less than 50 persons. The liability of a shareholder is measured against his or her share value. The minimum capital required for such a set up in Dubai is AED 300,000 which may vary from one location to another. While foreign ownership of the shares is permitted, they must not exceed 49% of company’s capital. A Limited Liability Company can take part in any legal activity apart from insurance, banking, and other activities that involve investment of money on behalf of any other entity or party.

Private Shareholding Company

Any private shareholding business, much like a public shareholding corporation is needed to have a minimum of 3 shareholders. The lowest amount investment required for such a business is AED 2 million. With this form of UAE company registration, shares are not readily offered to the general public. Due to this reason it is necessary that the paperwork associated with a private shareholding company do not include any kind share offerings to the public from the very beginning.

Joint venture

Companies those running as joint venture are also sometimes called consortiums. A joint venture can be formed by 2 or more natural persons or legal entities. The joint venture can be carried out only under private name of any one of the involved partners who needs to be a UAE national.