Question: My son wants to set up his own business. He is currently studying for his A-levels but does not want to go to college or university. Instead, he is determined to turn his hobby into a business venture. Is there a way he can do this without paying a lot of money? EM, Dubai
Answer: It turns out that EM’s son is just 16 years old. That means he is too young to set up a business under UAE law.
The minimum age to establish a business in the UAE is 18. Until quite recently, people had to be 21, but following the implementation of the Commercial Transactions Law (Federal Decree Law No. 50) of 2022, this was reduced to 18 years for many activities and occupations.
Even then, there are still restrictions as the age of majority is 21, so a minor is not permitted to sign most legal documents.
In this situation, EM’s son will not be able to set up a business until he turns 18.
At that time, the best value option for a small business may be an eTrader licence from the Dubai Department of Economic Development (DED), which currently costs around Dh1,370 ($373). Not all business activities are eligible, so it will depend on the specific hobby and business activity. If he is not eligible for this licence, the cost increases significantly.
In order to earn money in the UAE, it is mandatory for residents to have a suitable licence or work permit. It is illegal to work without these and the fines can be substantial.
It is possible under UAE labour law to take on paid employment from the age of 15, albeit with significant limitations and only on a part-time basis.
Q: Last month I started a new job. It is a good package that includes school fees and a housing allowance.
I am still on probation and a new person who has taken over this division since I was interviewed is telling me that I have to sign a new offer letter that has lower benefits. He said that if I don’t sign it, they will not process my visa. Basically, he said I will be terminated. That means I cannot sponsor my children and they need visas to continue going to school.
Can I be terminated for this? Can the company change my contract like this? Do I have any rights? GH, Abu Dhabi
A: According to UAE labour law, a person who is on probation can be terminated at any time and without reason. Article 9.1 states: “The employer may appoint the worker under a probationary period not exceeding (6) six months from the date of commencement of work. The employer may terminate the service of the worker during this period after notifying the latter of the same in writing fourteen (14) days at least before the date specified for the termination of service.”
The complication here is that GH does not have a work permit, or a residency visa provided by this company. That means she is not legally employed. It is illegal to work without the right visa and work permit and an employer should submit an application to the Ministry of Human Resources and Emiratisation (MoHRE) by the date an employee starts work at the latest.
This application is accompanied by the standard labour contract that sets out the terms of employment, including salary and benefits. That is always the official version.
No employer can change the terms of employment without the agreement of the employee and a contract should then be updated with MoHRE, especially if there is a substantial reduction in the amounts.
This case shows that the employer has not applied for a visa and work permit, which means that not only are they employing GH illegally, she is also working illegally. She has no protection in law without a proper contract and work permit. Therefore, she has no legal grounds to make any complaint against the company.
The company's behaviour is unprofessional. Far too many businesses fail to employ people legally from the outset to defer costs. The individual is usually the one who loses out.
If a company is reported for breaking the law, they can be fined, with the amounts increasing with each offence. They can also be prevented from taking on any more employees.
It is important that people are made aware of the law in this regard and that they are putting themselves at risk by working without the proper visa and work permit.
An application status can be checked with the Ministry.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 30 years' experience. Contact her at keren@holbornassets.comor at www.financialuae.com
The advice provided in our columns does not constitute legal advice and is provided for information only
New schools in Dubai
HWJN
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Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
Book%20Details
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Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Alan%20Wake%20Remastered%20
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Profile of Hala Insurance
Date Started: September 2018
Founders: Walid and Karim Dib
Based: Abu Dhabi
Employees: Nine
Amount raised: $1.2 million
Funders: Oman Technology Fund, AB Accelerator, 500 Startups, private backers
Jewel of the Expo 2020
252 projectors installed on Al Wasl dome
13.6km of steel used in the structure that makes it equal in length to 16 Burj Khalifas
550 tonnes of moulded steel were raised last year to cap the dome
724,000 cubic metres is the space it encloses
Stands taller than the leaning tower of Pisa
Steel trellis dome is one of the largest single structures on site
The size of 16 tennis courts and weighs as much as 500 elephants
Al Wasl means connection in Arabic
World’s largest 360-degree projection surface
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
THE BIO
Favourite author - Paulo Coelho
Favourite holiday destination - Cuba
New York Times or Jordan Times? NYT is a school and JT was my practice field
Role model - My Grandfather
Dream interviewee - Che Guevara
Have you been targeted?
Tuan Phan of SimplyFI.org lists five signs you have been mis-sold to:
1. Your pension fund has been placed inside an offshore insurance wrapper with a hefty upfront commission.
2. The money has been transferred into a structured note. These products have high upfront, recurring commission and should never be in a pension account.
3. You have also been sold investment funds with an upfront initial charge of around 5 per cent. ETFs, for example, have no upfront charges.
4. The adviser charges a 1 per cent charge for managing your assets. They are being paid for doing nothing. They have already claimed massive amounts in hidden upfront commission.
5. Total annual management cost for your pension account is 2 per cent or more, including platform, underlying fund and advice charges.
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
UAE currency: the story behind the money in your pockets
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
