This device isn't eligible for creating a free iCloud account

Hi. My dad bought an used iPhone 4S 16GB yesterday. I tried to setup an iCloud account for him but I got error saying: this device isn't eligible for creating a free icloud account. I want to set it up and can someone help me please? I really need it. Thank you!

I have already created an Apple ID for the iCloud and I'm trying to sign in from the phone in the iCloud menu. It says this device isn't eligible for creating a free icloud account.

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