The Dh150,000 capital requirement for start-up companies has been scrapped by the Government to help small businesses get off the ground without the burden of expensive red tape.

The change is expected to provide a boost to small and medium-sized limited liability firms which have been among the hardest hit by the global financial crisis.

“Smaller businesses are generally the main drivers of any economy and make up the bulk in terms of employment,” said Robert McKinnon, the head of research at Al Mal Capital, a Dubai-based investment bank. “This is a step in the right direction.”

Under new rules announced yesterday, partners in new business ventures will be able to determine the start-up capital needed to run their businesses.

The previous system required a minimum commitment of Dh150,000 (US$40,000).

Dh150,000 company start-up hurdle axed - The National Newspaper