How To Start A Share Holding Company In Dubai


Most business owners today want to make sure that they look out for the best opportunities that they can find to start their business. In the last few years, Dubai has been shifting its gears from oil based economy to service based economy and therefore you will find many new companies and startups coming up here in the Middle East rapidly. Starting a shareholding company in Dubai is beneficial, but the country has its own rules and regulations and therefore you need to be aware of how you can start a shareholding company in Dubai without any legal problems or inconvenience.

Understanding the Concept of Shareholding in Dubai

If you are new to Dubai business market it is important that you understand the concept especially when it comes to shareholding company.  The concept is a long standing requirement under the Commercial Companies Law of the United Arab Emirates also known as the Companies Law where every company is a shareholding company where national shareholders have 51% of share capital while foreign parties are limited to 49% ownership in the UAE companies. If you are not happy with the concept of shareholding company in Dubai you will have to choose a business location which is in the Dubai Free Zone which can cost you more. Free zones allows 100% ownership to the expatriates as well as 100% tax benefits.

Selecting the Right Location

It is also important for a company to get the right location in Dubai that allows the firm to get the right customers and clients quickly to boost the business sales. Hence, research is important to ensure that you buy the right location or rent it according to your business plans.

Formal Requirements

There are no formal requirements when you are starting your  company in Dubai but it is recommended that you have legal written agreements that can allow safeguarding your business when you are in legal problems. The written agreements and documents are like contracts among the stakeholders that are drafted to conform their terms to substantive matters.

Minimum Investment

When you are keen on starting your shareholding company in Dubai you have to make sure that you have the capital or funds that meet their minimum requirement. In UAE you will need at least AED 10 million (US$ 2.7 million) to start a public shareholding company. On the other hand, if you are interested in private shareholding company you will need around AED 2 million (US$ 0.5 million) and free zone companies it’s starts from USD 14,000 but it also varies depends on the activity and free zone you choose.

Choosing Business Advisory in Dubai

If you are not accustomed to the rules and regulations of Dubai business world you will need to find business advisory that can guide you with the experience and expertise that they have. There are many business advisory firms that can offer you information on how you can start your shareholding company in Dubai and how you can invest your money in the right way. This will help you to get ahead with business registration and setup quickly rather than getting involved in all the complications that you might find strange.


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