United Arab Emirates law requires investors to specify the value of the capital in the company's articles of incorporation and articles of association, but does not require a minimum amount for limited liability companies. As is the case in many other jurisdictions, LLCs are commonly used vehicles in which shareholder liability is generally limited to their shareholder participation. Nor is there a minimum share capital specified by the United Arab Emirates Act to establish an LLC. However, the LLC must have sufficient share capital to achieve its purpose of incorporation.
For this reason, the level of share capital established for an LLC normally must be approved by the relevant authority in the emirate of incorporation. Apart from these, Dubai does not charge personal income taxes or withholding taxes or capital gains taxes. Share capital is the monetary contribution that shareholders, owners or directors of the company usually make at the beginning of the incorporation of the company. However, there are still some free zones in Dubai, where it is not mandatory to deposit the share capital at the time of the creation of the company.
Or you may want to deposit share capital through the bank's branch in cash, if your company is still in the process of being created. A national sponsor from the United Arab Emirates is required to establish a commercial representative office, although as with foreign branches, this local sponsor cannot participate in the administration and has no capital in the commercial representative office. There are a number of registration and licensing requirements that will need to be met to start a new business in the United Arab Emirates and different cost implications depending on the type of commercial vehicle you choose and where you want to establish the entity. But where is the company's share capital usually mentioned? It is indicated in the company's corporate documents, such as the memorandum of association, the share certificate, the certificate of ownership, and sometimes in the company's license.
We know that, yes, in some countries this is the practice, freezing share capital funds until the company ceases to exist. Another potential benefit of establishing a company in some free zones is that, unlike what happens in the continental United Arab Emirates, a physical office may not be required (depending on the type of entity and the regulations of the free zones). Owning a company in a free zone allows the investor to retain 100% of the company's shares, without the requirement of a national shareholder from the United Arab Emirates. Although some of them want to verify that you have this money and you will have to deposit it and present the corresponding proof in the form of a sealed bank statement or a certificate of share capital, others will not require any confirmation and the share capital will only be mentioned in corporate documents.
