A Private Joint Stock Company is an organization whose capital is divided into negotiable shares of equal value and a partner therein shall be liable only to the extent of his share in the capital of the company. The company has to have a minimum AED 2,000,000 as its capital. Shares of a Private Stock Company cannot be offered to the public. The Private Stock Company is formed to carry out commercial or industrial business activities. A Private Joint Stock Company is not allowed to conduct any professional activities.

Private Shareholding Company is incorporated by a number of persons not less than three. The minimum share capital to form a private share holding company is 2 million AED. Unlike public shareholding company, a private shareholding company cannot invite the public for subscribing in its shares. It is mandatory that the Chairman and majority of the Directors in the company must be UAE nationals. Fifty-one percent (51%) of shares shall belong to a UAE national. A Private Joint-Stock Company is subject to all the rules and regulations that are applicable to Public Stock Companies, except for the rules and regulations relating to public share subscription. A Private Stock Company can be converted into a Public Stock Company after two years of its formation by fulfilling certain requirements.

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