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Authorized capital refers to the maximum amount of share capital that a company is legally allowed to issue, as stated in its Memorandum of Association (MoA). While UAE law does not generally mandate a minimum authorized capital for mainland companies, certain industries, such as banking and insurance, have specific capital requirements. In free zones like DIFC and ADGM, capital requirements vary depending on the regulatory framework governing financial and non-financial entities. The concept of authorized capital allows businesses to structure their funding needs while maintaining flexibility for future expansion.
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