If you’re setting up your company in the UAE, you’ll come across the term share capital pretty quickly — usually when you’re signing your Memorandum of Association.

But here’s the thing:
Share capital isn’t just a random number you throw on paper.
It’s tied directly to the foundation (and future) of your business.

Let’s break it down simply — so you actually get it without the legal jargon.

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📈 What Is Share Capital?

Share capital is the total value of the shares issued by your company.
It shows:

• The amount each shareholder owns
• The total investment put into the business by its owners

You’ll find it officially documented in your Memorandum of Association (MOA) — the blueprint of your company’s structure.

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❓ How Do You Determine Your Share Capital?

One of the most common questions I get from new entrepreneurs is:
“How much should my share capital be?”

Here’s the simple rule:
👉 In most cases, your initial share capital represents how much money the owners have actually invested when the company starts.

• If you’ve put in AED 10,000, that’s your starting share capital.
• If it’s AED 1,000, that’s fine too — especially when you’re just launching.

Pro tip:
It doesn’t have to be a big number right away.
Your share capital can grow over time as your business grows.
Every time you inject more money into your company, it gets reflected in your balance sheet — clean, simple, and traceable.

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📋 Important: Some Businesses Have Specific Rules

While many free zones and mainland setups are flexible with share capital,
certain activities and industries have minimum share capital requirements — especially if you’re dealing in:

• Financial services
• Real estate
• Certain regulated sectors

Plus, some free zones themselves (like DIFC, ADGM, etc.) might set their own share capital thresholds depending on the license type.

That’s why it’s crucial to check before you submit your documents.

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Need a quick crash course on how banking works after you get licensed?
👉 Check out this guide on banking after business setup in the UAE — it’ll save you a lot of time.

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💬 Final Thoughts

At the end of the day, setting the right share capital isn’t about impressing anyone —
it’s about setting your business up properly and being ready for future growth.

Whether you’re starting lean or scaling big, making sure your share capital aligns with your strategy can save you time, money, and legal headaches later.

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📞 Ready to Set It Up the Right Way?

Share capital isn’t just paperwork — it shapes how your business is structured and viewed.
Book a free consultation and I’ll help you get it right from the start, so you can focus on growing your business with full confidence.