On January 12, The Commercial Law was updated in conjunction with the minimum age amendment for teenagers to launch a business in the UAE. The minimum age to operate a business is now 18 (Gregorian Years), as opposed to the former requirement of 21 years. A significant turning point in the growth of the nation’s business climate is the new commercial transaction law. The development of digital technology and the internet has led to the formation of new commercial law in the Emirates. The main objective of this law is to take the full advantage of young potential by reducing the age from maximum 21 to 18.
In most of the free zones, according to the former regime, companies can have shareholders who were 18 or older provided the MOA must be signed by the guardians. Whereas shareholders under the age of 21 were not eligible to become directors or to sign official contracts. By reducing the age restriction it is a chance for young people to enjoy more opportunities to choose their own path in life at an early stage. This change also gives more responsibility to teenagers because most of them are now interested in starting their own businesses.
According to Federal Law No. 5 of 1985, the Civil Transactions law of the United Arab Emirates, the legal “age of majority’” was 21 years old.
In the UK, since 1969, the legal age of consent for adults to enter into contracts has been 18 years old.
In the USA, the minimum age is 18 practically in all its States.
The undersecretary explained that the decree-law targets a large segment of society, including traders, investors, commercial projects owners, and companies involved in transportation and storage. The new law will support business in the tech sector and commercial activities related to the digital field. The more use of the digital world is the foundation for economic growth for any nation.
Although the age of launching a business is reduced it is advisable to take the expert advice. We https://alyaauditors.com/ Business Setup wings will help you, the teenagers in your business setup. Our expert team would be glad to find an ideal solution for all your unique queries.