My elder son had iphone4. No that he has upgraded, has given it to younger sister. But now can't make new I'd. Is there a restriction on no of times iPhone can be used to make new I'd to sign in?
But there is no need to worry. Have your daughter create an Apple ID on any of the iPhones or iPads you have at home and simply login with it on her iPhone 4.
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Apple only allows 3 iCloud ID's per device. This is to keep users from creating one after another to get the free 5 gb of iCloud storage for each one. She'll have to either use a former ID (one of the 3) or not have an account of her own.