Are you looking to maintain privacy while securing business ownership in Dubai?
Nominee services in Dubai offer an ideal solution for those seeking confidentiality and compliance. Whether you are a foreign investor, business owner, or high-net-worth individual, our expert services can assist you in overcoming the intricacies of nominee agreements. At RAS Corporate Advisors, we offer professional services to make sure that your business ownership is kept confidential while still fulfilling all legal requirements.
Call us today for a free consultation and protect your business with the appropriate nominee services
Introduction
Dubai is a point of interest to investors and entrepreneurs globally due to its tax-free environment and business-friendly climate. Entrepreneurs like to have their owners remain private and be subject to UAE law when organizing their businesses. Nominee services in Dubai are the answer as it allows one to act on behalf of the company, hence keeping the true owner private. It is important to understand how to protect yourself while appointing a nominee and the conditions of a nominee agreement.
This blog is going to explain the concept and advantages of nominee services, methods of protection, and making a nominee agreement.
What Are Nominee Services in Dubai?
Nominee services in Dubai
Involve the naming of a third party to act as a director or shareholder for a company on behalf of the true owner, providing a shroud of privacy and conformity. Nominee services take two basic types:
Nominee Shareholder
This individual or entity holds shares without management rights, enabling the real owner to remain unknown.
Nominee Director
A nominee director acts in the company’s name but lacks real control over operations.
Nominee services in Dubai are common among offshore companies, free zone setups, and foreign investments requiring a UAE local sponsor. They provide a mechanism for maintaining privacy while fulfilling regulatory requirements.
Why Use Nominee Services in Dubai?
Maintain Privacy & Anonymity
While UAE laws offer ownership record protection, nominee services add a confidentiality layer, keeping owners off public records entirely.
Asset & Wealth Protection
Using a nominee protects the business from liabilities, lawsuits, and creditors, offering peace of mind to the owner.
Simplify Business Structuring
For those with multiple enterprises, nominee services streamline ownership across various jurisdictions, easing compliance processes.
Tax Optimization & Compliance
Offshore companies can benefit from nominee arrangements for efficient tax planning while remaining compliant with regulations.
Also Read :Required Documents for Each Individual Shareholder and Manager/Director
How to Protect Yourself When Using Nominee Services
While nominee services provide privacy, they can entail risks. Here are ways to protect your interests:
1. Make a Strong Nominee Agreement: Make your nominee exercise only on your commands, with no control over property or decisions.
2. Use a Power of Attorney (POA): A notarized POA allows you to retain authority over fiscal and operational business matters.
3. Select a Trustworthy Nominee Service Provider:
- Work with well-established corporate service providers or law firms.
- Check the provider’s track record and legal expertise.
- Avoid unverified agencies or individuals.
4. Set Up a Beneficial Ownership Declaration: This document confirms that the nominee holds shares on your behalf without actual ownership rights.
5. Have a Termination Clause: The agreement should facilitate easy nominee replacement if necessary, minimizing business disruption.
How To Draft a Nominee Agreement (Key Points To Include)
A nominee agreement contractually obliged the business owner and the nominee, to define roles, responsibilities, and boundaries.
Essential Clauses to Include:
- Declaration of Beneficial Ownership: States the nominee acts for the real owner, not themselves.
- Power of Attorney (POA): Provides the actual owner full control over business activities and decisions.
- Non-Disclosure & Confidentiality: Ensures the nominee cannot disclose business details.
- Limited Liability Clause: Shields the owner from liabilities related to the nominee.
- Compensation Terms: Defines fees or remuneration for the nominee.
- Termination Clause: Allows easy nominee removal by the owner.
- Limitations on Actions: Prevents nominees making unauthorized decisions or transfers of shares.
- Governing Law & Jurisdiction: Identifies UAE law as the governing body.
Also Read : How To Get Your Certificate Attestation In UAE
Who Can Take Advantage of Nominee Services?
Foreign investors need a UAE local sponsor while desiring full control.
High-net-worth individuals wanting privacy in their business ownership.
Companies expanding in Dubai are looking to keep ownership private.
Entrepreneurs using offshore or free zone structures to optimize operations.
Conclusion
By understanding nominee services in Dubai, business owners can operate efficiently, maintain privacy, and meet compliance requirements. Opting for a UAE nominee shareholder agreement and ensuring all legal parameters through a well-crafted arrangement offers a streamlined pathway for those looking to secure confidential business setups in Dubai.
Partnering with experts like RAS Corporate Advisors can further simplify the process, ensuring compliance with local laws and providing tailored solutions for businesses seeking a seamless setup in the UAE.