Maintaining secrecy is one of the primary focus of business investors keen on investing in the offshore model.
The lucrative tax havens provide numerous benefits to individuals to incorporate their business entities at ease.
The UAE has always been one of the profitable business grounds attracting entrepreneurs and business investors globally. However, this is not limited to the newbies or experienced professions seeking to incorporate an onshore business.
Investors widely use the offshore business model to set up a company in the UAE, and thus, nominee director services come into the picture.
This guide highlights the essentials required to know about the offshore nominee services that are important for you to know.
Who is a Nominee Director?
A Nominee Director is a term referred to as the physical person or a legal entity who the company shareholder appoints as the non-executive director of the company and who acts only on the instructions of the company's beneficial owner.
Appointing a nominee director is the solution used within the registration of the international offshore company and, in some instances, for an onshore company in the United Arab Emirates.
A nominee director is appointed to detain shares on behalf of the company's owner.
The name of the shareholder will appear in the corporate documents and sometimes in the tax-haven jurisdiction's business register. Here the term jurisdiction mainly refers to an offshore company in Dubai, UAE.
What is a Nominee Director Service?
Nominee service is a legal method of protecting the identification and anonymity of the company owner. The nominee director or shareholder could be an actual person or a legal entity working out fiduciary responsibilities over the company.
Nominees formally represent the company; however, they remain liable concerning any functions or omissions. It is important to remember that the law does not recognize the concept of "nominee director" or "nominee shareholder".
If a person or company is appointed as a director, all the duties and liabilities will be imposed on the nominee officer.
What is the Usage of Nominee Director Services in the UAE?
A nominee investor in the United Arab Emirates is used for the following moves:
- To ensure the anonymity of the ownership for non-governmental bodies and safeguard disclosure of ownership information in a public inquiry.
- To ensure anonymity for making business deals and signing agreements.
- When the personal presence of the company director is required to conduct business in another country, and the beneficial owner does not have an opportunity to travel.
- To prevent lawful restrictions on deals between affiliate bodies. This option is helpful for the transfer of assets within a holding company.
- When it is necessary to extend the statutory bodies by the right amount of members
How to Avail Nominee Director Service in the UAE?
Offshore nominee services in the UAE can be availed by following the steps mentioned below:
- Get hold of a certified business expert
- Understand the core tasks and the importance of availing the service
- Clearly define the needs of your business
- Get the documents cleared
- Obtain the respective approvals and avail of the service
Nominee services allow you to include one added layer of protection to your business entity. It becomes challenging for the business rivals to fetch out the relevant company formation and offshore bank account information.
Even if a company hires a nominee director, he/she is not entitled to manage it at their discretion, and the actual control is entirely vested in its beneficial owner.
At this point, Business Setup Worldwide can help you to clear the respective proceedings at ease. Since incorporation, we have been assisting numerous business owners by providing corporate setup solutions.
To know more about the same and avail it for your business, feel free to speak with our business advisor. Contact us today-we'd be glad to assist!