UAE Share Capital Requirements
Two things make this topic confusing. The AED 300,000 minimum for a mainland LLC no longer exists — it was removed in 2021, yet guides still publish it. And free zone requirements are set per zone, ranging from nothing at all to AED 150,000, so there is no single UAE figure to quote.
The AED 300,000 figure is obsolete
For years a mainland LLC was described as requiring AED 300,000 of share capital. Federal Decree-Law No. 32 of 2021 on Commercial Companies removed that mandated minimum, leaving capital for the shareholders to determine, provided it is sufficient for the company's purpose.
Older articles still repeat the AED 300,000 number as current. If a page quotes it without noting the 2021 change, treat everything else on that page as potentially out of date too. It is a useful freshness test for any UAE setup guide.
Declared capital vs paid-up capital
This distinction causes more confusion than the numbers.
- Declared capital is the figure stated in your constitutional documents, the Memorandum of Association. It is a statement of the company's capital structure.
- Paid-up capital is money actually deposited into a company bank account.
In many cases the declared figure does not have to be deposited. The main exceptions are regulated activities — financial services in particular — and certain free zones that require a deposit before the licence issues. If a zone requires paid-up capital, you will usually need a bank letter confirming the deposit, which means opening the account becomes a gating step rather than a later task.
What free zones actually require
There is no common standard. These are published examples and they span two orders of magnitude.
| Free zone | Indicative requirement | Notes |
|---|---|---|
| twofour54 (Abu Dhabi) | No minimum | Media and creative cluster |
| Dubai Airport Free Zone | from AED 1,000 | Among the lowest published |
| Dubai Internet City | around AED 10,000 | Technology cluster |
| IFZA | around AED 12,000 paid up | Deposit commonly required before licensing |
| DMCC | AED 50,000 per company | Plus around AED 10,000 per shareholder |
| KIZAD | AED 150,000 paid up | Industrial zone, at the high end |
| Mainland LLC | No mandated minimum | AED 300,000 requirement removed in 2021 |
| DIFC / ADGM regulated | Set by the regulator | Prescribed base capital plus capital adequacy |
Because the range runs from nothing to AED 150,000, capital is worth checking at the same time as licence cost. A cheap licence in a zone requiring a large deposit can be the more expensive option in cash terms at setup.
Regulated activities are a different conversation
Financial services carry capital requirements set by the regulator, not the free zone, and they are substantially higher. A DFSA or FSRA category comes with its own prescribed base capital and ongoing capital adequacy obligations. If you are in that territory, the licence fee is a rounding error against the capital you must hold and maintain.
What this means in practice
- Ignore any page quoting AED 300,000 as a mainland requirement
- Ask your zone two separate questions: what must be declared, and what must be deposited
- If capital must be paid up, factor bank account opening into your timeline, because it gates the licence
- Set declared capital sensibly — too low can look thin to banks and counterparties, and amending it later means a Memorandum amendment
- For regulated activity, start from the regulator capital table, not the zone brochure
Share Capital — FAQs
Is there a minimum share capital for a UAE LLC?
No. Federal Decree-Law No. 32 of 2021 on Commercial Companies removed the previously mandated AED 300,000 minimum for mainland LLCs, leaving the amount for shareholders to determine provided it suits the company purpose. Guides still quoting AED 300,000 as a current requirement are out of date, and that is a useful signal about the rest of the page.
What is the difference between declared and paid-up capital?
Declared capital is the figure stated in your Memorandum of Association. Paid-up capital is money actually deposited into a company bank account. In many cases the declared figure does not need to be deposited at all. The exceptions are regulated activities and certain free zones that require a deposit before issuing the licence, usually evidenced by a bank letter.
How much share capital do free zones require?
It varies enormously and there is no common standard. Published examples run from no minimum at twofour54 and around AED 1,000 at Dubai Airport Free Zone, through roughly AED 10,000 to 12,000 at Dubai Internet City and IFZA, up to AED 50,000 at DMCC and AED 150,000 at KIZAD. Check capital alongside licence cost, because a cheap licence in a high-deposit zone can cost more in cash at setup.
Do I have to deposit the share capital in a bank?
Only where the zone or the regulator requires paid-up capital. Where they do, you will generally need a bank letter confirming the deposit before the licence issues, which makes opening the account a gating step rather than something you do afterwards. Plan the timeline around it, since UAE account opening is rarely fast.
Should I declare a high or low share capital?
Low enough to be practical, high enough to be credible. Banks, landlords and corporate counterparties do look at it, and an unusually thin figure can create friction. Raising it later means amending the Memorandum of Association, which is a paid process, so it is worth setting sensibly at incorporation rather than at the minimum.
What capital do financial services companies need?
Substantially more, and it is set by the regulator rather than the free zone. DIFC and ADGM categories carry prescribed base capital plus ongoing capital adequacy requirements that must be maintained, not just deposited once. For that route start from the regulator capital table rather than any zone brochure.
Related
General information, not legal advice. Capital requirements are set by federal law, by each free zone and by sector regulators, and they change. Confirm with the relevant authority before incorporating.
Last updated: October 2026 · Maintained by the My Business Setup editorial team
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