How to create an apple id on iPhone 4?

Hello i'm having a problem on my iphone 4. I want to create a new apple id bcs i'm giving it to someone else. But when I finish everything at the end it says "can't create apple id. This device is no longer eligible to make free iCloud account" help me

You could simply let that person make their own Apple ID since it is a free process.

Since you are giving it to someone else you should restore the phone using iTunes & again let them set up their own new Apple ID. Should solve the issue.