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UAE Reduces Legal Age for Starting Business to 18 Years Old

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UAE Reduces Legal Age for Starting Business to 18 Years Old

Great news for all aspiring teens with a penchant for business. As per a recent alteration in the UAE Commercial Transaction law, an 18-year-old UAE resident could become a stakeholder in a UAE firm. He or she might also become the sole owner and director of a limited liability company (LLC). On the MoA, no guardian signature is mandatory.

 

Previously, firms may have shareholders who were 18 or older (in most free zones). However, their guardians were required to sign the MoA. Furthermore, if a shareholder was under the age of 21, he or she wasn’t allowed to become a director or sign valid commercial contracts.

 

Moreover under Article 18.2 of the new Commercial Transactions Law, a minor, regardless of whether subject to a guardianship, who hits 15 years of age, may trade on the terms and conditions set by the decision of the Cabinet (and) based on the recommendation of the Minister of Economy. The previous prescribed age in such circumstances was 18 years, and a court order was required.

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