What are the legal forms for companies in Dubai ? Companies in the United Arab Emirates take several legal forms, each with procedures and legislation other than the other.
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What are the legal forms of companies in Dubai?
UAE law has legislated several laws for the form of investment companies.
So we will mention the most important legislative laws for companies in the UAE.
which is next:
- Solidarity Company
It is a partnership between two or more persons. Each of them participates in all the obligations of the company.
The company takes its name from one of the partners or a combination of them. However, if the company takes the name of one partner, the word (partners) must be mentioned in its trade name.
One of the most important special conditions for establishing a partnership company is: That the partners are all local and that they do not have any foreign partner.
The partners share profits and losses, When the company goes bankrupt, all partners will go bankrupt.
- Simple recommendation company
The company consists of two types of partners, Joint partner and limited partner.
First, the general partner , is a partner responsible for all the company’s obligations.
Secondly, the silent partner is not asked for any obligations except within the limits of his share in the partnership.
One of the most important conditions for establishing a limited partnership company is: All partners must be local citizens.
It is also necessary to clarify each of the joint and silent partners in the company’s articles of incorporation.
- The public shareholding company
One of the legal forms of companies in Dubai is the public shareholding company, and more than 5 people, or government companies, for example, or local companies, can establish this type of company.
The capital is divided into shares according to the share of each partner. These shares can be traded in and subscribed to in the markets.
A public joint stock company must, To choose a trade name of its own and not similar to any other commercial activity.
This is in addition to the fact that the company’s capital is not less than 30 million UAE dirhams, And that the partners in the joint-stock company subscribe to no less than 30% of the value of the shares, It shall not exceed seventy percent of the value of the shares.
- Private joint stock company
Here, it is permissible for one individual to establish a private joint-stock company, or to be several shareholders.
However, when choosing a trade name, it must include the text of a private joint stock company. This type of company does not offer its shares for trading or subscription.
One of the most important conditions for establishing the company is that the founding capital should not be less than 5 million UAE dirhams.
It is important to register all the shareholders in the company, if found, in books that show the share of each of them in the shares in the company. To deliver this book to the share registry secretariat.
- Among the legal forms of companies in Dubai
A limited liability company
It is a partnership between several partners. Their number does not exceed 50 people.
In addition, the UAE law allows an Emirati citizen to establish a limited liability company individually.
The company takes its trade name from the nature of its investment activity. And the phrase limited liability company is added to it.
The UAE investment law was also set after legislation, including: If the number of shareholders in the company increases to more than seven, A supervisory board should be appointed for a company.
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