The Ministry of Economy (MoE) of the United Arab Emirates has revised the Commercial Transaction Law as of Thursday, January 12th. The age limit for starting a business in the UAE is now 18, reduced from the previous age limit of 21.
What is the Motto Behind This Amendment?
The age limit revision aims to promote a business culture in the UAE, bringing a new shift in the nation’s business environment and supporting young talents. This change allows young people to start early and gain hands-on experience in operating businesses. The UAE, a prominent business hub, continuously introduces initiatives to support Entrepreneurship in every aspect.
Early entrepreneurs can establish a foothold in the market before competition becomes too fierce, shape the industry, and define its direction. They also have the opportunity to build a strong brand and reputation, which can be beneficial in the long term.
This decision not only encourages new talents to pursue entrepreneurship but also facilitates business takeovers by descendants. Teens can now start their side hustles while focusing on their studies, giving them the option to pursue business right after high school.
Additional Focus Points of the Legislation:
– Establishes a legal framework for commercial transactions for financial institutions to attract investment and provide additional growth and competitiveness options for enterprises.
– Supports Islamic banking, recognizing it as a major growth booster.
– Amends rules regulating the governance and establishment of financial markets, requiring necessary licenses per the country’s securities legislation.
– Emphasizes technology-oriented businesses and other commercial activities involving the digital sector, encouraging investment in technological and commercial sectors in the Emirates.
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Although the Commercial Transaction Law now allows individuals as young as 18 to start businesses in the UAE, the setup procedure remains unchanged and involves many nuances. Young entrepreneurs, in particular, might need more assistance during the setup process.
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Frequently Asked Questions (FAQs)
The UAE has lowered the age limit for entrepreneurs from 21 to 18 years old.
To promote youth entrepreneurship and allow young people to gain business experience earlier.
No, the process remains the same, following standard licensing and legal requirements.
Yes, it encourages more young entrepreneurs to enter innovative fields like technology and digital startups.
Yes, they must comply with all business registration and regulatory procedures.
