Prospective entrepreneurs and corporates have varied options to pick from, for company formation in the UAE.
Socprollect Business Consultants guide prospective business ventures and entrepreneurs the right way forward and take the perfect pick:
General partnership as a form of company incorporation is permitted for UAE nationals by two or more partners who are responsible for the company’s performance, either profit or loss and are liable for the debts of the company.
In a limited partnership, partners are liable for its debts only up to the value of their contribution to the capital.
In a public shareholding company, the company must have no less than 10 founders unless a UAE government entity is involved. In such a case, the company incorporation can be done with less than 10 founders.
In case of incorporation of a private shareholding company, there should be no less than 3 shareholders with a minimum capital of AED 2 million.
A Limited Liability Company is the most preferred company incorporation in the UAE. Set up by minimum 2 but not more than 50 persons, a shareholder’s liability is hedged against the value of his shares. Foreign ownership of shares cannot be more than 49% of the company’s capital. An LLC in UAE can partake any legal form of business except banking, insurance, and such other activities involving money investment on behalf of other parties or entities.
Joint venture or a consortium is formed by two or more legal entities under the private name of one of the partners, who must be a UAE national.
However, the key feature of company incorporation in a free zone is that foreign nationals can own 100%.