The Law stipulates that companies engaging in banking, insurance, or financial activities should be run as public shareholding companies. Foreign banks, insurance and financial companies, however, can establish a presence in Dubai by opening a branch or representative office.
Shareholding companies are suitable primarily for large projects or operations, since the minimum capital required is Dh. 10 million (US$ 2.725 million) for a public company, and Dh. 2 million (US$ 0.545 million) for a private shareholding company. The chairman and a majority of directors must be UAE nationals and there is less flexibility of profit distribution than is permissible in the case of limited liability companies.
First: Documents required for Initial Approval
- Registration and licensing application, as well as proof of reserved trade name.
- Four copies of the Company’s Memorandum & Articles of Association duly authenticated by the Notary Public.
- Two copies of the Project’s Feasibility Study.
- Approval issued by other Government authorities according to the type of activity.
- Ministry of Economy resolution concerning private shareholding.
- Approval of UAE Securities and Commodities Authority concerning public shareholding.
Second: Documents required after getting the Initial Approval
- Initial Approval receipt.
- All documents submitted before in order to get the Initial Approval.
- Photocopy of office lease including the plot number.
- List of Directors’ names, dates and places of birth, occupation, and a sample of the Directors signature. Please provide the original documents plus one copy of each.
- A written declaration by each member of the Board of Directors of accepting the appointment.