All you Need to Know about SPC Company Setup

 

A Single Person Company is similar to a Sole Proprietorship but is a limited liability company. This means the liability of the shareholder is limited to the extent of their capital in the company. The SPC company setup is a very common form. An SPC company can be owned by an individual along with one company. A Single Person Company can be 100% overseas owned. If you are a new entrepreneur then start an SPC company can be a good option for you.  

The Single Person Company may not carry out business activities relating to banking, investment, and insurance activities and is not permitted to issue public stakes, negotiable debentures, or warrants. Nor the company incorporation, the growth of its stake capital, not its lending to the account can be done underwriting publicly stakes. Also, no transferable stakes or bonds can be issued to them. The owner of the company should differentiate between their personal finances and the company’s share capital. 

The Process of SPC Company Setup

The process of SPC company setup is not complicated, the basic steps are as follows:

1. Company Name 

You need to choose a company name that is not the same as the other legal organization’s name. The name of the company should end with Single Person Company. 

2. Application Form 

You need to fill an application form with all the professional and personal information that should be submitted to the Ministry of Industry, Commerce, and Tourism. You need to mention shares’ information in the SPC, and the qualification of the owner. 

3.Article Form

The Article of Association is the major document of an SPC because it governs all the company-related rules. Once you prepared all the documents and approved by Ministry they should be approved by a notary and a photocopy require to be submitted online. 

4.Commercial Registration 

The certificate of commercial registration should be obtained for the SPC company setup because it permits the company to perform their commercial business operations. Additionally, for the completion of ownership criteria is:

• At least age of 18 years is required, some commercial activities a minimum of 21 years of age. 
• No criminal record
• Sane mental health
• Passport with two years validity

5.Final Approval 

Now you need to submit all the necessary documents attached with a complete business plan to the Ministry of Industry, Commerce, and Tourism for the SPC company setup. This application process takes around two weeks to complete and once the application is approved then you are ready to run your business. 

Documents Require for SPC Company Setup 

The necessary documents required for an SPC company setup in Dubai are:

• The application form of company registration
• The draft copy of a Memorandum of Association and Article of Association
• Certificate of Capital deposit
• Letter of appointment from an external auditor 
• Director and investors’ ID 
• Copy of commercial registration of the company
• Board of director’s resolution for the SPC company setup
• Details of educational qualifications of the applicant
• Commercial address 

Benefits of SPC Company Setup 

• 100% overseas ownership permitted
• Limited Liability company framework, as per Article 292 of the company commercial law. 
• Less formalities
• Local business operations are permitted
• Over 300 activities allowed for overseas individuals
• The local sponsors are not required
• The owner of a company can hire a manager to manage business activities on its behalf. 

If you are looking to start a Single Person Company the this is the time to start. The procedure can be a little complicated without the help of the local knowledge, therefore, this is advisable to take the assistance of an experienced and qualified consultant as their help would be crucial in securing your valuable money and your time. We at Start Any Business will take care of your legal and documentation formalities and all other activities related to the SPC company setup.