The UAE has lowered the minimum age to start a business from 21 to 18 years, opening new doors for young entrepreneurs. Under the updated Commercial Transactions Law, individuals as young as 18 can now legally establish, own, and manage companies, while those aged 15 to 18 can participate in trade with approvals.
Dubai, UAE — In a bold move toward youth empowerment and economic diversification, the UAE has officially lowered the legal age to start a business from 21 to 18 years old. This significant update under the Commercial Transactions Law No. 50 of 2022 marks a transformative shift, opening the door for a new generation of entrepreneurs to contribute directly to the nation’s thriving economic landscape.
For aspiring young business owners, the updated law simplifies the path to launching a company. Individuals aged 18 and above can now legally establish, own, operate, and manage a business across the UAE, without requiring a guardian’s authorization. Although considered minors until they reach 21, 18-year-olds gain considerable autonomy, reflecting the UAE’s growing confidence in youth capacities and commitment to fostering entrepreneurial ambition.
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Previously, the age threshold of 21 prevented younger individuals from fully participating in commercial ventures. Now, with the lowered age limit, 18-year-olds can venture into entrepreneurship with fewer legal constraints. They can even open bank accounts and register a company under their name—no guardian required—although some legal activities, like signing powers of attorney, may still require oversight.
“Minors aged 18 to 21 have more freedom to act independently,” explains noted legal experts, citing improvements that enable young adults to bank and register businesses without guardian intervention. This change aligns local legislation with global norms, as many countries allow adult legal capacity from 18.
The law also allows minors aged 15 to 18 to engage in commercial activities, provided they obtain necessary approvals. Guardianship, court involvement, and cabinet-issued guidelines determine how minors can engage in trade, such as opening accounts or disposing of assets. This balanced approach respects both protection and empowerment.
Emerging platforms for crowdfunding now present exciting possibilities for those under 18. Some platforms, like government-backed youth initiatives, permit participants as young as 12 to pitch business ventures—with parental or guardian consent required. Each platform operates under specific legal frameworks set by authorities such as the Central Bank, Securities and Commodities Authority (SCA), and financial free zone regulators. The minimum age to independently participate in crowdfunding remains 18 on the mainland and in free zones, unless otherwise approved by a court for younger applicants.
Lowering the age threshold signals a progressive era for fledgling founders. Youth now have legitimate avenues to pursue ventures, be it fintech start-ups, creative ventures, or tech innovations, without having to wait for adulthood.
One online commentator noted:
“The UAE has recently amended the age requirement for trading or business ownership… individuals who are 18 years or older can now legally establish, own, operate, and manage businesses.”
While the law empowers young entrepreneurs, legal limitations persist as a reality check. For instance, even at 20, some individuals still face difficulties opening business bank accounts due to conservative banking policies. One discussion revealed how delays and extra permissions for minors have scattered paths toward seamless operations:
“I faced the same issue with my business between the ages of 16–21 that led me to incorporating in Mauritius… Then they reject for not having 600k as a startup… consider getting a ‘Permission to Trade’ from Dubai Courts.”
This highlights that while legal frameworks have evolved, practical implementation and institutional readiness must catch up.
This move is warmly welcomed across business advisory circles. Experts herald the reform as a strategic initiative to nurture homegrown innovation and encourage youthful engagement in sectors like tech, e-commerce, and creative industries. By empowering youths to manage enterprises, the UAE is nurturing economic diversity and forward-thinking leadership.
With the new Commercial Transactions Law now in effect, a business world of opportunity awaits UAE’s youth. At 18 years old, legal doors now fully open for independent entrepreneurship; from age 15, carefully structured entry points exist—with safeguards—in place. While practical hurdles endure, the landmark reform is a testament to the UAE’s ambition to harness youthful energy, drive economic growth, and build the innovators of tomorrow.
This is more than just a legal amendment—it’s a signal from the UAE that the future belongs to bold, young dreamers ready to lead.
