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What is a Private Shareholding Company

Private Joint Stock Companies were created to give businesses a strong structure and protect owners from personal liability. A Private Shareholding Company (PSC) divides its capital into shares held only by founders or selected investors. It is regulated by the DED and the Ministry of Economy.

A PSC is different from a Public Joint Stock Company. A public company can sell shares to the public and must be listed on a stock exchange with SCA approval. A PSC cannot offer shares to the public and does not need to be listed.

A PSC also limits the number of shareholders to a maximum of 200. This makes it ideal for families, private groups, and investors who want a structured company without public ownership or stock-market requirements.

Advantages of Setting up a Private Shareholding Company (PSC) in Dubai

Tax Efficiency

Tax Efficiency

Zero personal income or capital gains tax in UAE. Corporate tax 9% only above AED 375,000 profit.

Enhanced Credibility

Enhanced Credibility

Corporate structure boosts business reputation and institutional trust. Viewed as stable by partners and banks.

Limited Liability

Limited Liability

Shareholder liability limited to capital contribution amount. Personal assets protected from business obligations.

Ownership Control

Ownership Control

Founders maintain ownership without public shareholders. Share transfers restricted to approved members only.

Flexible Management

Flexible Management

Professional board structure with clear governance. Operational flexibility without public disclosure requirements.

Sustainable Growth

Sustainable Growth

Capital pooling supports expansion and reinvestment. Scalable structure accommodates business development.

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Is Private Shareholding Company (PSC) Formation in Dubai Costly?

Setting up a Private Shareholding Company in Dubai offers controlled ownership and flexible business operations without public share offerings. With proper guidance through DED procedures, shareholder agreements, and compliance requirements, the formation process becomes cost-effective. Experience reliable PSC formation services with Riz & Mona Consultancy, your trusted business consultants in Dubai.

We analyze your shareholding structure and handle all regulatory filings, documentation preparation, and compliance procedures. Riz & Mona Consultancy provides complete support for initial approvals, MOA/AOA drafting, shareholder coordination, DED registration, and all compliance requirements to ensure your Private Shareholding Company is established successfully and meets all UAE Commercial Companies Law standards.

Dubai PSC Formation Cost Calculator

Get a comprehensive cost breakdown for establishing a Private Shareholding Company in Dubai.

Business Structures

Key Features of PSC

Capital Structure

PSCs divide capital into equal nominal value shares (AED 1-100 each) offering flexibility in shareholder contributions.

Shareholder Base

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Governance Structure

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Share Transferability

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Regulatory Oversight

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Operational Continuity

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Key Requirements for PSC Establishment

  • Establishing a private shareholding company in Dubai requires AED 5 million fully paid capital
  • Minimum two shareholders (or one legal entity) where shares must be equally divided
  • Maximum 200 shareholders allowed with no public share offerings permitted
  • Foreign Direct Investment Law allows up to 100% foreign ownership for activities on Positive List
  • Board of directors with defined governance structure and decision-making authority
  • Ministry of Economy approval and Department of Economic Development registration mandatory
  • Memorandum and Articles of Association prepared in Arabic and notarized
  • Bank certificate confirming minimum capital deposit in corporate account
  • Ultimate Beneficial Owners (25%+ ownership) must be fully disclosed and verified
  • Office lease agreement in Dubai with physical business premises required
  • Clean compliance record with no financial crimes, fraud, or sanctions listing
  • Sectoral approvals from relevant authorities if regulated activities (healthcare, education, finance)
Key Requirements for PSC Establishment

Our Scope in Private Shareholding Company Formation Services

Forming a Private Shareholding Company in Dubai requires expertise in UAE Commercial Companies Law, shareholding structures, and DED regulations. As experienced PSC formation consultants, we bring in-depth knowledge of capital requirements, ownership regulations, and compliance procedures for private joint stock companies.

We ensure you fulfill all obligations under UAE company law and DED requirements. Partner with us for absolute clarity and ease.

PSC Formation Services in Dubai

  • Initial approval and feasibility study
  • MOA and AOA drafting and notarization
  • Minimum capital arrangement (AED 5M)
  • Shareholder coordination (minimum 2 required)
  • Foreign ownership structuring and FDI compliance
  • Ministry of Economy approval processing
  • DED registration and licensing
  • Board of directors formation

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