REALWorld Law

Corporate vehicles

Minimum capital

What is the minimum capital required to set up each type of corporate vehicle used to invest in real estate?

United Arab Emirates - Abu Dhabi

United Arab Emirates - Abu Dhabi

(a) Within Abu Dhabi and outside the Abu Dhabi Global Market free zone

Limited liability company (LLC)

The UAE Companies Law does not prescribe any minimum share capital for an LLC. The LLC is required to have adequate share capital to achieve the purpose of its incorporation. Therefore, the adequate capital required for an LLC can be decided by its shareholders. There is no guidance issued to indicate the level of adequacy and neither is there any decision on the minimum share capital. The shares should be comprised of equal shares. In practice a notary public would usually accept a minimum share capital for an LLC in Abu Dhabi of AED 150,000 divided into equal shares, each with a minimum value of AED 1,000. Public subscription for shares is not permitted and the share capital must be paid up in full.

Although the UAE Companies Law provides that the shares in cash shall be deposited in a UAE registered bank, presently, there is no requirement to provide evidence of the deposit of the share capital in the bank.  Details of its share capital will be included in the LLC's memorandum of association which will need to be notarised by the UAE notary public as part of the incorporation process.

Public joint-stock company (PJSC)

The minimum limit of the issued capital of a PJSC is AED 30 million. This increases in the case of banks and insurance companies.

Given the substantial capital requirement, and the fairly restrictive rules of establishment and management, it is often not a suitable corporate vehicle for overseas investors wishing to establish a vehicle for investment purposes.

Private joint-stock company (private JSC)

The minimum share capital required is AED 5 million.

(b) Within the Abu Dhabi Global Market free zone

In the Abu Dhabi Global Market free zone, a public company’s minimum required allotted share capital is USD 50,000. Private companies do not have a minimum capital requirement.