UAE never misses a chance to amaze people. Isn’t it? Let’s come to the main point! Again, the UAE has taken a fantastic initiative to empower the young generation. This time United Arab Emirates (UAE) Ministry of Economy allows teenagers to run businesses by reducing the age of legal capacity to run a business from 21 years to 18 years.
With this new law, now young people can operate businesses and gain hands-on business experience from a very early age. After all, today UAE is the most promising business hub and there is no wonder that the UAE would promote several lucrative initiatives in the future like this. UAE published the updated guidelines related to this recent amendment in October 2022, and finally it has now been implemented as a law.
Formerly, a young entrepreneur between the ages of 18-21 had to register his or her business under a legal guardian as a ‘temporary owner’ until the individual turned 21. But now the scenario has changed. An individual of 18 years of age can be the legal owner of his or her business as well as the company.
Top Points to Note Related to the New Law:
- An individual is now allowed to register a company at the age of 18 according to the new amendment.
- The UAE ministry allows the banking sector to follow a legal reference for commercial transactions to stimulate investment from young people.
- The Islamic banking sector in Dubai is providing excellent support to provide businesses with a broader scope to grow effectively.
- It is mandatory to obtain a legal business license by following the legal rules and regulations as addressed by the Ministry of Economy, UAE.
- The technology sector and commercial businesses are flourishing by leaps and bound in UAE through this support.
- This new law is aligned with international rules and regulations.
Why UAE Decides to Set a Minimum Age for Company Registration:
- Firstly, UAE aims to create a safe environment for young people to start a business.
- Secondly, the UAE wants to empower the young generation by helping them to gain experience.
- Thirdly, it also aims to encourage responsible entrepreneurship by discouraging irresponsible business practices.
- Finally, the UAE wants the country to move forward economically.
Abdullah Al Saleh, the Undersecretary of MoE, briefed this reversed law to the media by emphasizing the fact that this law will make it easier for the young generation in the UAE to set up a business at an early age.