GNcareers, from Gulf News

The public joint stock company

PJSCImage Credit: Supplied

In the UAE, public shareholding companies, otherwise known as public joint stock company (PJSC), are required to have 51% of stocks or shares to be owned by UAE nationals or companies entirely owned by UAE nationals. The chairman and majority of the directors in a public joint stock company must also be UAE nationals.

In a public shareholding company, the capital is divided into equal negotiable shares or shares of equal nominal value, with the shareholder’s liability limited to the number of stock shares he holds.

Not just any company can qualify to be a public shareholding company as the minimum capital required is AED 10 million. In the UAE, businesses into banking, insurance and financial activities are required to be run as public shareholding companies. For banking establishments, the minimum capital outlay is required to be AED 40 million, whereas insurance and investment companies are required to have AED 25 million.

General conditions for PJSCs are stated on the Securities & Commodities Authority (SCA) website, that is: The founding partners may not be less than ten natural or corporate persons; The capital may not be less than AED 10 million, subject to the minimum capital according to licensing requirements; The number of shares subscribed by the founders may not be less than 20% and not more than 45% of the capital; Uniformity and specialization in the key purposes of the company must be considered.

A detailed list of the documents required as well as the procedures and fees are also included in the SCA website.

Handy Hints
• Capital required is min. AED 10 million for PJSCs
• UAE nationals must own 51% of stocks in a Public Joint Stock Company
• General conditions for PJSCs are on the SCA website




Source: Lovely Claire CD, Special to Classifieds
The writer is a freelancer