Minimum Age to Start Business in UAE 🥇 – 2025 Guide

Minimum Age to Start a Business in the UAE

Young entrepreneurs dream big. The UAE now makes it easy to turn ideas into reality. The law reduced the age to start and manage a business. Before, the age was 21 years. Now, anyone who is 18 or older can own, operate, and manage a company. This change came under the Commercial Transactions Law – Federal Decree by Law No. 50 of 2022.

This new rule creates chances for youth. It allows students, fresh graduates, and young visionaries to start early. The UAE’s decision aims to build an economy that supports innovation and attracts investment from across the globe.

Legal Requirements for Young Entrepreneurs

Setting up a business at 18 is now possible. However, there are points to keep in mind:

• Legal Capacity: People who are 18 years old can register a company, sign contracts, and run operations.
• Power of Attorney: Some legal documents may still require guardian approval if you’re under 21.
• Banking Needs: Minors can open their own bank accounts without guardians if they are 18.

This change shows that the UAE trusts its youth and wants them to be a part of the growing economy.

Business Opportunities for 18-Year-Olds

Entrepreneurs who are 18 can:

• Start companies in free zones or mainland.
• Open a bank account in their own name.
• Manage daily operations for their business.
• Apply for licenses without guardian signatures.

But some activities still need guardian or court permission if the person is under 21 and the legal act is very sensitive, like selling property.

What About Minors Below 18?

The law also allows teenagers above 15 to do trade, with special approvals:

• Court Approval: Needed for high-value transactions or property sales.
• Guardian Approval: Needed for employment or signing contracts.
• Banking: A guardian must co-sign to open a bank account for minors below 18.

This means teenagers can start early, but they must follow extra legal steps before launching a business.

Crowdfunding Rules for Young Founders

Crowdfunding is a smart way to raise money. Platforms like Dubai Next let children as young as 12 pitch their ideas. However, guardian permission is required to join and run campaigns.

Legal experts advise reading terms and conditions of every crowdfunding platform. Some platforms set their own age limits, so a parent or guardian may need to sign documents to release funds or sign investor agreements.

Key Advantages of Lowering Business Age

Lowering the legal age for business formation has many benefits:

• Encourages entrepreneurship from a young age.
• Builds a culture of innovation and responsibility.
• Supports UAE’s goal of creating a knowledge-based economy.
• Attracts investors to youth-led startups.

What Can Help You

Mubarak Al Ketbi (MAK) Auditing helps young entrepreneurs with business setup, licensing, and compliance. Our experts simplify the legal process and guide you step by step. Remember, where there’s a will, there’s a way!

• 📍 Visit Us: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – UAE
• 📞 Call/WhatsApp: +971 50 276 2132
• 🌐 Website: makca.co