Selling Shares in a Company in Dubai
Selling Shares in a Company in DubaiUpdated on Sunday 13th November 2016
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Joint stock companies can issue and sell shares in Dubai and are often listed on the Stock Market for trading purposes. Investors who choose this type of company have the freedom to value and trade the shares of their company, compared to the private limited liability company that cannot trade shares so freely.
One of the experts at our law firm in Dubai can give you all the necessary information about company types and requirements for issuing shares, as they are outlined in the Commercial Companies Law.
Trading company stock in Dubai
Public limited liability companies in Dubai can be listed on the Stock Exchange. The Dubai Financial Market is a popular choice, operating within the special zone in the city. Many foreign companies sell shares on this market. A special license is required in order to list the company here. The Abu Dhabi Stock Exchange and the NASDAQ Dubai are two other options for listing companies in the UAE.
When trading shares and stock in Dubai, investors can work with a broker or a financial services company. If you need legal services on the laws applicable to foreign trade in Dubai, one of our lawyers in Dubai can answer your questions.
Our experts invite you to watch this short video about selling company shares in Dubai:
Transferring company shares in Dubai
Selling the shares of a company is possible in Dubai for joint stock companies and, in certain circumstances, for limited liability companies (LLCs). For the latter, a special transfer document is needed.
The company Board must approve any sale of shares in a limited liability company in Dubai through a special resolution. A share transfer agreement may also be concluded between the seller and the buyer. In order to complete the share transfer, the seller must obtain an approval from the Department of Economic Development. Additional documents are usually requested at this stage, including information about the number of shares that will be sold to the buyer.
Selling the shares of a company in Dubai means that the ownership of that company has changed (only for limited liability companies). This change must be reflected in the company’s constitutional documents. One of our lawyers in Dubai can help you amend the commercial licence of that company.
For more information on selling and transferring shares in Dubai as well as additional legal advice and support, please do not hesitate to contact our law firm in Dubai.