Define which Business you are opening up?
The business which I would like to open within UAE is Real Estate developer as Public Joint Stock Company. The business of Real Estate is the profession of buying; selling, buildings or housing, or renting land, and having it open as public joint stock company it’s with much more benefit. The public joint stock company is a business entity which is owned by shareholders. The shareholders of a public joint stock company are liable only to the value of their shares in the capital of the company.This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others.Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.
List Down the business requirement for the specific business company you are starting and include whether you are a GCC National, Expat, ...view middle of the document...
A public joint stock company is required to have a chairman of the board of directors who must be a UAE National.
6. At least 10 percent of the net profit should be allocated to a reserve account until such reserve account amounts to half of the total paid-up capital of the company.
7. UAE nationals should hold at least 51% of the shares of the public joint stock company. The founder (Expat) members must subscribe for a minimum of 20% and a maximum of 45% of the share capital of the company.
8. Directors can be re-elected when their term of office has expired.
These are the 8 laws for the public joint stock company that should be done as way as it written or our action is going to be against law.
There are some procedures that should be done to open real estate developer and that are:-
To start a company for developing real estate projects (housing, commercial complexes, tourism-related projects) and infrastructure related to this, entrepreneurs need a commercial license from the DED and the activity fee for this is Dhs25, 000 per year.
All nationals can be owners of this kind of business and the owners don’t need to take any courses, according to RERA.
The Dubai Land Department states that the following documents are required by developers looking to get RERA approval:
1. Membership certificate from the Dubai Chamber of Commerce & Industry
2. Ongoing trade license
3. Details of the projects (new and future ones) according to the model presented by the department
4. Architectural designs and plans for accredited projects from concerned departments and the main developer
5. Sales contract between the main and sub developers
6. Title deed of the project’s land
All projects must be registered with RERA’s Escrow Accounts Department after the license is issued
Explain why you choose that business venture?
The reason that I choose real estate developer as public joint stock company as my business is , that having my business as public joint stock company it makes my business more flexible. The other advantages of opening my business as public joint stock company that i can come up with more capital by selling shares to public.