For many years, the United Arab Emirates (UAE) has established itself as one of the most attractive destinations in the world for foreign businesses. Here is a quick look at three common classifications of foreign-owned businesses in the UAE:
Joint participation company
Commonly referred to as joint ventures, joint participation companies are formed when two or more partners (one of which must be legally authorized to do business in the UAE) enter into a contract. This type of company does not require a local or federal license, although the partner actively doing business is liable to any third parties.
Public joint stock company (PJSC)
To achieve listing as a PJSC, a company must accumulate a minimum of $2.7 million in capital and offer at least 55 percent of its shares to the public. Companies involved in sectors such as finance, banking, and insurance must operate as public companies.
Limited liability company (LLC)
Like its counterparts in many other parts of the world, an LLC in the UAE maintains full control over its management and assumes liability for its profits and losses.