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A public joint stock company (PJSC)is a company whose capital is divided into equal shares. Each PJSC partner is responsible or liable only up to the extent of his share.
In the UAE, the Securities and Commodity Authority (SCA) is the main entity that issues licences to public shareholding companies.
A PJSC should not have less than ten natural or corporate persons as founding partners. A large number of its directors must be UAE nationals. The business capital should not be less than Dh10 million, and the founders should not have less than 20% share but not more than 45% of the capital.
To apply for initial approval, the founders must submit a written letter to the SCA. After it is approved, electronic copies of legal documents must be sent to the SCA and the Department of Economic Development (DED). Documents must be translated into Arabic and certified.
If the application is approved, the authority’s decision to issue a licence for the establishment of the PJSC will be published in the official gazette. After all the proceeding procedures are completed, the company must set a general assembly and invite subscribers to the activity, which includes the election of the board of directors.
It is vital for the firm to finish registration so that it will be listed in the financial market. After it has complied with all the stipulated processes and requirements, the SCA will then issue it a registration certificate.
• PJSC’s founding partners must not be less than ten
• All documents to be submitted must be in Arabic
• Applicants are required to hold a general assembly
Source: Cleofi-Krista Capili, Special to Classifieds
The writer is a freelancer