Dubai: Types of Company
Public and Private Shareholding Company
The law stipulates that companies engaging in banking, insurance, or financial activities should be run as public shareholding companies. Foreign banks, insurance and financial companies, however, can establish a presence in Dubai by opening a branch or representative office.
Shareholding companies are suitable primarily for large projects or operations, since the minimum capital required is AED 10 million (US$ 2.725 million) for a public company, AED 40 million for banks and AED 25 million for insurance and investment companies, and AED 2 million (US$ 0.545 million) for a private shareholding company. The chairman and a majority of directors must be UAE nationals and there is less flexibility of profit distribution than is permissible in the case of limited liability companies.
A minimum of 25% of the shares of a Public Shareholding Company must be offered to the general public.