As we have said in many of our blogs, starting a business in the UAE is easier than in many other places. What’s better than starting your business with few risks? With the help of experienced business consultants in the UAE, you can make your dream come true and start your own business with little money.
Read on to learn how to start a business with little money in the UAE. We are here to help you get an e-commerce license in Dubai if you need any help.
Minimum Capital Requirement for Various Companies
The UAE companies’ law says that foreign investors can start five different kinds of businesses in Dubai. There are branch offices, permanent ventures, free zone companies, virtual companies, and commercial agency agreements. Also, the UAE’s companies law says that a business registered in Dubai must have at least half of its share capital owned by UAE nationals. Let’s talk about the minimum amount of capital that different businesses need. Here is a detailed guide and some advice on how to start a business in UAE with little money.
Find out what the difference is between setting up a company on the mainland and in a free zone.
LLC
The most common type of registered business in Dubai is a limited liability company (LLC). The UAE companies law doesn’t specify a minimum amount of share capital, but there should be enough capital to achieve the purpose of the company’s formation, and the capital should have a value that is shared equally. As we’ve already seen, the minimum accepted share capital for an LLC in Dubai was around AED 100,000 not too long ago. At the moment, there is no minimum amount of share capital that must be deposited in a UAE-registered bank. It will be enough to write down the details of the share capital in an LLC’s memorandum of association and have the same documents notarized by a public notary in the UAE.
In Dubai, the Department of Development comes up with adequate capital tests to make sure that the minimum share of capital is put into place. So, the Department of Development in Dubai can figure out what the minimum capital share is for a limited liability company. New requirements for capitalization will be written into the law based on the activities that are done and the amount of foreign investment that can be more than 49 percent. A professional business setup team in Dubai can help you find out more about the answers you’re looking for as you start your business.
FZ-LLC
It depends on the free zone where the business will be registered and the activities the business wants to do. In Dubai Media City, for example, the minimum amount of paid-up capital is AED 50,000. But when it’s said that the activities will be part of the Broadcasting TV and Radio Segment, which needs the least amount of capital, AED 2.5 million, that changes things.
Dual Licence Branch
Where does the company talk about the share capital? It’s clear from the company’s official papers, like the share certificate, certificate of incumbency, memorandum of association, and maybe even the license. What should you do if you want to open a business in a free zone where you have to put down a share deposit? Will the amount of capital remain the same? Don’t worry, even though many countries do this, it is not a strict rule. Once the company is registered and it can be shown to the right authorities that a certain amount is in the company’s bank account, you can use the money as you see fit.
To sum up, tips to start a business with minimum capital in UAE free zone are easier than in most other places. With the help of free zone authorities, you can get your paperwork done quickly. To start a business, you must first decide what kind of legal entity you want to be, then choose a trading name, get a business license, and finally find a place to work. To find out more, look at the list of free zones and administrations. You have to go to each free zone’s authorities to register a business. The main difference is how many shareholders there are and whether or not a shareholder is a legal person. Also, not every free zone may let both types of businesses sign up.
MIA Consulting is a Business Setup Consultant in Dubai who can help you start your business without any problems. Feel free to get in touch with us if you have any other questions about your business.