Thu, Nov 21, 2024 | Jumada al-Awwal 19, 1446 | DXB ktweather icon0°C

UAE: How minors can conduct trade, minimum age to start a business; all you need to know

The country encourages young entrepreneurs to start businesses, which will boost the economy and create new jobs

Published: Tue 8 Oct 2024, 7:12 PM

Updated: Thu 31 Oct 2024, 6:02 PM

Top Stories

UAE has emerged as a secure and dynamic country for growth and entrepreneurship. With world-class business infrastructure, an attractive tax regime, and a favourable corporate environment, it has solidified its status as a global business destination.

The UAE's long-term residency programmes, such as the Golden Visa, Green Visa, and Investment Visa, have successfully attracted expats worldwide. These programmes have not only drawn emerging talents but also reassured entrepreneurs about the availability of a skilled workforce in the Emirates.

Although the UAE nurtures the ambitions of its young citizens and residents, the country has set a minimum age for entrepreneurship. According to the Ministry of Economy (MoE), any 18-year-old UAE resident is eligible to start a business or practice trade under the Commercial Transactions Law.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

According to the Law, a minor may engage in trade when they turn 15, whether under guardianship or custody. However, they must follow the rules and conditions issued by the Minister of Economy. This arrangement guarantees that the legal and financial parts of the firm are managed properly and ethically, in accordance with local rules.

If a minor (under 18) or a person under legal guardianship has money in a trade, the court can decide whether to let them take their money out or keep it invested, depending on what is best for them.

Suppose the court allows the minor to keep their money in the trade; it will give a representative permission to manage that investment, which can be unlimited or limited based on the situation. The court may withdraw or restrict this permission when justified, without prejudice to any rights acquired by a bona fide third party.

Any court order that pertains to a minor (under 18) or a person under legal guardianship's participation in a trade, be it to continue, withdraw, or limit their authorisation, must be promptly communicated to the relevant authorities. This information will be duly recorded in the commercial register and made public in accordance with state laws.

If the court permits a minor or an interdicted person to remain in the trade, they will be held accountable only for the money they have personally invested. The relevant legislation shall govern the proceedings of declaration of the minor's bankruptcy, its cases and effects.

In the Emirates, a Limited Liability Company (LLC) is established through a partnership between a local sponsor, a UAE national who holds 51 per cent of the company, and a foreign investor who owns the remaining 49 per cent. The foreign investor must be at least 18 years old, while the local sponsor must also comply with the UAE government’s age and legal criteria.

ALSO READ:



Next Story