Types of Incorporation

General Partner Company

This type applies to UAE nationals only & can consist of two or more partners who are jointly liable for all profit or loss incurred.

PARTNERSHIP IN-COMMENDAM (LIMITED PARTNERSHIP)

This type, again, applies to UAE nationals only. It is a firm consisting of one joint partner or more who is liable with all his money for the firm and another in-commendam partner or more who shall not be responsible for the liabilities of the firm except to the value of his share in the capital.

PUBLIC SHAREHOLDING COMPANY (PJSC)

In this type, the Chairman and majority of the Directors in a public shareholding company must be UAE nationals. In addition UAE nationals should hold at least 51% of the shares. Public Shareholding Company is a company with a capital divided into equal shares. In such companies a shareholder's liability is limited to the number of shares held by him. Minimum capital required to form a Public Shareholding Company is AED 10 million (US $ 2,724,796) with a nominal face value of AED 1 - 100, and for a banking entity it is AED 40 million and insurance and investment companies is AED 25 million. Among the other requirements for establishing a public joint stock company is the preparation of a founders' agreement, a prospectus or invitation for public subscription supported by an overall business plan or feasibility study and an auditors certificate, a due diligence survey, a memorandum and articles of association. A PJSC must have at least 10 founder members and its management should be vested in a board of directors consisting of a minimum of three to a maximum of fifteen persons whose term of office may not exceed three years. The founder members may only hold 35% of the share capital, as 65% is required to be offered to the public. Companies engaged in banking, insurance or financial activities can be run as public share holding companies.