What is the minimum age to start a business in the UAE?
Gooya Dubai Editorial Team 1 min read 1509 views
While the UAE nurtures the ambitions of its young citizens and residents, it has set a minimum age for entrepreneurship. According to the Ministry of Economy, any resident aged 18 and above can start their own business or engage in trade under the Commercial Transactions Law.
Based on this law, individuals below the legal age can engage in trade from the age of 15, whether under guardianship or not. However, they must comply with the rules and conditions set by the Ministry of Economy. These regulations ensure that the legal and financial affairs of the company are managed correctly and ethically, in accordance with domestic laws.
If an individual below the legal age (under 18) or a person under legal guardianship has capital in a business, the court may decide to withdraw their capital or continue the investment based on the individual's interests.
If the court allows the minor to keep their investment in the business, it grants permission to a representative to manage this investment, which can be unlimited or limited, depending on the circumstances. The court may revoke or limit this permission if justified, without harming the rights acquired by this representative.
Any court order related to the participation of a minor (under 18) or a person under legal guardianship in business, whether for continuation, removal, or limitation of powers, must be promptly reported to the relevant authorities. This information will be accurately recorded in the commercial register and published according to government regulations.
If the court allows a minor or a person under guardianship to remain in business, they will only be responsible for the capital they personally invested. Relevant laws will oversee the process of declaring bankruptcy for the minor, its cases, and effects.
In the UAE, a Limited Liability Company (LLC) is established through a partnership between a local sponsor, an Emirati citizen who holds 51% of the company, and a foreign investor who holds the remaining 49%. The foreign investor must be at least 18 years old, while the local sponsor must also meet the age and legal criteria set by the UAE government.
