PRIVATE SHAREHOLDING COMPANY
A Private Shareholding Company is incorporated by a number of persons not less than three. Unlike a public shareholding company, a private shareholding company cannot invite the public for subscribing to its shares. The minimum share capital to form a private shareholding company is AED 2 million. (US $ 544,959). The Chairman and majority of the Directors in a private shareholding company must be UAE nationals.
LIMITED LIABILITY COMPANY
A Limited Liability Company is the most common form of a business entity currently formed in the UAE. A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. The minimum equity participation by UAE nationals is 51%. The capital required to form a limited liability company in Dubai is AED 300,000 (US$ 81,744) contributed in cash or in kind. However, in the other Emirates, the capital requirement is AED 150,000 (US$ 40,872). Profit or loss distribution can be prescribed and the responsibility of the management of an LLC can be vested in the foreign or national partners or third parties. The shares of such companies are not open for subscription by the public and they do not issue negotiable shares.
JOINT VENTURE (CONSORTIUM COMPANY)
A Joint Venture is a type of company where two or more partners agree by contract to share the profits or losses of one or more commercial enterprises, which will be carried on in the name of one of the partners. Contract of Joint Ventures may be written or oral and not required be notarized. Third parties can recourse only to the partners with whom they deal. However, should the Joint Venture is disclosed to the third parties, all the partners are liable to the third parties. The existence of a Joint Venture may be proved by any method of proof.