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A Public Joint Stock Company (PJSC) in Dubai allows businesses to raise capital by offering shares to the public. It operates under UAE law, with strict regulations from the Securities and Commodities Authority (SCA). This guide explains the setup process, legal requirements, and benefits for companies seeking expansion or investment.

Historical Evolution of Public Joint Stock Companies

Public Joint Stock Companies (PJSCs) began in the 17th century when European traders pooled resources for large ventures, creating the foundation of modern stock exchanges.
Evolution-of-Public-Joint-Stock-Companies
Over time, PJSCs became key to raising capital by offering public shares. Today, they play a vital role in Dubai’s business growth under strict regulations.

Steps to Establish a Public Shareholding Company in Dubai

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Obtain Initial Approval:

Submit the company name and business activity proposal to the Department of Economic Development (DED) or relevant authority.

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Draft Legal Documents:

Prepare and sign the Memorandum of Association (MoA) and Articles of Association (AoA) with at least 5 founding members.

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Submit Application to SCA:

Submit the MoA, AoA, and other required documents to the Securities and Commodities Authority (SCA) for approval.

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Conduct IPO:

Prepare a prospectus, get SCA approval, and offer at least 30% of shares to the public through an Initial Public Offering (IPO).

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List on Stock Exchange:

Apply to list the company on a Dubai stock exchange, like the Dubai Financial Market (DFM).

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Finalize Incorporation:

Obtain the final incorporation certificate and business license from the DED or relevant authority.

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Ensure Ongoing Compliance:

Follow regulatory requirements for reporting, shareholder meetings, and governance as per SCA guidelines.

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Benefits of Establishing a Public Joint Stock Company (PJSC) in Dubai

Access to Capital for Expansion

Liquidity and Investor Confidence

Corporate Image and Global Reach

Strategic Partnerships

Talent Retention

Tax Efficiency

Required Documents for PJSC in Dubai, UAE

  • Initial Approval Certificate
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)
  • Founders’ Agreement
  • Prospectus
  • Shareholders’ List
  • Board of Directors Information
  • Subscription Certificate
  • Bank Deposit Certificate
  • Legal Clearances
  • Auditor’s Appointment Letter
  • Application for Listing (if applicable)

Governance and Compliance Framework for PJSCs in Dubai, UAE

Directors' Legal Responsibilities

Directors must follow governance laws or face legal penalties, ensuring accountability.

Leadership Roles (CEO, CFO, COO)

Executives handle operations, finances, and company growth under board strategies.

Regulatory Oversight

PJSCs are monitored by SCA and must submit financial reports and hold AGMs.

Corporate Governance

PJSCs require strong internal controls, audits, and transparency to build investor trust.

Financial Transparency

Annual audited statements ensure clear reporting and protect shareholder confidence.

Incorporation Process

Starts with DED and SCA approvals, followed by public share listing (IPO).

Key Characteristics of a PJSC in Dubai, UAE

Capital Structure

Capital is divided into shares, with a minimum of AED 10 million required.

Public Shares

At least 30% of shares must be offered to the public and traded on exchanges.

Board of Directors

Governed by 3–15 members, with at least one-third being UAE nationals for compliance.

Limited Liability

Shareholders are liable only for the value of their shares, ensuring financial protection.

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Public Joint Stock Company Setup Consultants

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support in Setting up your Public Joint Stock Company in Dubai, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

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FAQS (Frequently Asked Questions)

What are the tax obligations for a PJSC in Dubai?

PJSCs in Dubai are subject to corporate tax and VAT, with potential exemptions in free zones, but specific obligations vary depending on the company’s activities.

Can foreign nationals be founding members of a PJSC in Dubai?

Yes, foreign nationals can be founding members, but UAE law may require a certain percentage of shares or board positions to be held by UAE nationals.

How is the transfer of shares handled in a PJSC?

Share transfers in a PJSC are facilitated through the stock exchange, following SCA regulations, ensuring transparency and legal compliance.

What are the consequences of failing to meet the ongoing compliance requirements?

Non-compliance can result in penalties, fines, or suspension of the company’s listing on the stock exchange.

What specific roles and responsibilities do the board of directors hold in a PJSC?

The board oversees corporate governance, strategic decisions, and ensures compliance with legal and financial regulations in line with UAE law.