- February 28, 2023
- Posted by: Vimal Hemachandran
- Category: Blog
The UAE is a nation that is always adapting to the evolving times. One of the most recent modifications which have been happened in the UAE has been the revision of minimum age required to open a business. In the past, residents of the UAE had to be at least 21 years old to open a business. Yet, a new legislation has been passed that allows people as young as 18 to lawfully launch their own businesses.
This modification is essential because it frees up young entrepreneurs from the need that they wait until they are 21 in order to follow their goals and passions. Also, it creates fresh possibilities for people who might have been stopped from beginning a business because of the existing legal age restriction.
The new law, which was enacted in September 2020, intends to aid in the growth of SMEs in the United Arab Emirates. Small and medium-sized businesses (SMEs) play a vital role in employment creation and economic growth in the UAE. The government is increasing prospects for entrepreneurship and innovation by enabling younger people to launch their own firms.
An individual under the age of 21 cannot open a business in the UAE unless certain requirements are satisfied.
A. They must have the required parental consent and a financial guarantee for the business from their guardians.
B. They must possess the training and expertise required to manage the company.
C. They must file a company registration with the appropriate authorities and comply with all legal requirements.
The UAE government has launched several programmes to help Businesses, and the implementation of this new law is only one of them. The government has started a number of initiatives and programmes in recent years to encourage entrepreneurship.
Bottom Line
The UAE’s decision to change the legal minimum age to open a business is a win for the nation’s budding entrepreneurs. It strengthens the UAE’s status as a centre for entrepreneurship in the Middle East and offers greater prospects for innovation and growth in the SME sector. The UAE is creating a promising future for its economy and its people by encouraging young entrepreneurs and giving them the resources and skills they need.