UAE Allows 18 Year Olds to Be Entrepreneurs

The Ministry of Economy (MoE) of the United Arab Emirates on Thursday, January 12th revised the Commercial Transaction Law. According to the new legislation, the age limit for starting a business in the United Arab Emirates is now 18—It was 21 previously.

What is the Motto Behind This Amendment?

The age limit for running businesses in UAE has been revised with the aim to promote business culture. This step is expected to bring a new shift in the nation’s business environment and at the same time support young talents.

This helps young people to start early and have hands-on experience in operating businesses. Moreover, entrepreneurship required young minds, and UAE being the prominent business hub never fails to come up with new initiatives that support entrepreneurship in every aspect.

This allows early entrepreneurs to establish a foothold in a market before competition becomes too fierce. Additionally, early entrepreneurs have the opportunity to shape the industry and define its direction. Furthermore, early entrepreneurs may also be able to build a strong brand and reputation, which can be beneficial in the long term.

Apart from encouraging new talents from pursuing entrepreneurship, this decision will also help business takeovers by descendants. This also encourages teens to be entrepreneurs and sharpen their skills from a young age. Now, teens and early youngsters can start their side hustle while they are focusing on their studies. This also gives them a choice of doing business right after high school.

Apart from this, the law focuses on many prominent points. They are,

·        The legislation establishes a legal framework for commercial transactions for financial institutions in order to attract investment and give additional options for growth and competitiveness to enterprises.

·        It supports Islamic banking in the nation and recognizes it as one of the major growth boosters.

·        The bill amends the rules regulating the governance and establishment of financial markets, making it mandatory to get the necessary licenses in accordance with the country's securities legislation.

·        The law gives importance to technology-oriented businesses and other commercial activities that involve the digital sector. This will encourage investment activities in the technological and commercial sectors in the Emirates.

Start Your Business Through Commitbiz

Even though the Commercial Transactional law is revised to allow people from 18 years old to do business in UAE, the procedure to do business is still the same irrespective of any factor. Moreover, young budding entrepreneurs would need more help in the set-up process as it involves many nuances.

Do not worry, Commitbiz is here to help you. Contact us today to set up your business in UAE.