Business Side of Media Identify media organizational structures

and understand basic economics (supply and demand, etc) as it affects

communications industries

Sole Trader • businesses in which there is one owner• He/she is solely responsible for all of the obligations

of the business Company

• A contract in which two or more persons agree to perform a profit making economic activity

1. General Partnership2. Public Joint Stock Company3. Private Joint Stock Company4. Joint Venture5. Limited liability Company6. Branch of a foreign company (pvt)7. Simple limited Partnership8. Partnership with shares

formed by two or more UAE Nationals foreigners cannot be part of a GP no minimum legal amount of capital

required partners can put in as much as money as

he/she wants partners agree on how the company is to

be managed and how the profit is to be shared between

each partner in a GP is fully liable for all debts and losses of that business

if one partner cannot pay - the other partner(s) must pay for everything

courts can take other non-business assets (e.g. land. cars) to pay for these liabilities

formed when large amounts of capital are required (e.g. building a resort hotel)

money is obtained from members of the public

10 or more foundation shareholders (people, or other companies, who start the company) are required  

foundation shareholders may hold a maximum of 35% of the shares

while 65%, or more, of the shares will be held (bought) by the public

any company that involves the government must be a PJSCo.

any bank, insurance company or other financial investment company must be a PJSCo.

a minimum of 10 million dirhams is required to start a PJSCo.

foreigners may hold some of these shares subject to the usual rule on national ownership

a Board of Directors runs a PJSCo. the Board of Directors are elected by

the shareholders. a PJSCo. must have: 

• Memorandum of Association & Articles of Incorporation: these are the rules about how the company is to be run and the type of business it is to conduct.

  each shareholder is only liable for debts

and losses of the PJSCo. to the value of the shares held

shares may be bought and sold according to the wishes of the shareholder.

the prices of the shares are listed daily by the Stock Exchange of the UAE

similar to a PJSCo. except that none of the shares are sold to the public

all shares are sold to 'private' parties (people and other companies)

these companies usually have PVT shown at the end of their trading name (e.g. EPPCO PVT).

three or more foundation shareholders are required

a minimum of 2 million dirhams is required to start a PVT company

the foundation shareholders may hold all of the shares

foreigners may hold some shares

rules on management are the same as for a PJSCo.

shares may only be traded (bought and sold) according to the rules given in the Articles of Incorporation & Memorandum of Association

profits will also be shared according to the rules given in the Articles of Incorporation & Memorandum of Association

each shareholder is only liable for debts and losses of the PVT Co. to the value of the shares held

a partnership agreement between two or more parties for a specific purpose (e.g. constructing a shopping mall)

quite often used when one of the parties is a foreign company that will complete the work of the project

JVs are usually dissolved (cancelled) after the completion of a project

local party or parties (person or company) bear all of the liability for debts and losses of the venture

the foreign party is liable to the value of its investment (how much money. or other assets. it puts in)

management and profit sharing of the JV will be according an agreement made between the parties

most common small company type they may have between 2 and 50

shareholders foreigners can be shareholders liability for debts and losses is limited to

the value of the shares held

minimum capital amount of Dh150,000 (Dh300 000 in Dubai) is required to start an LLC

an LLC is managed by a Board of Directors and must have a Memorandum of Association and Articles of Incorporation

companies which are established and registered outside the U.A.E.

can apply for a branch office in the U.A.E. the Ministry of Economy and Commerce must

agree company must sign an agreement with a UAE

citizen or (Local Service Agent)

small company size financial agreement between 2 or more

national partners no minimum capital outlay title or name of the business must use the

partner’s names partnership agreement must be written in

Arabic

• Same as limited partnership except

shares issued to public