When forming a company in UAE (which has it parent ownership in another entity / entities outside UAE) then there is an important requirement to be met. This requirement is for a Nominee Director.
A nominee director, is simply a resident of the UAE who will be the nominated manager on the license of the newly formed UAE entity. While some refer to it as nominee director, in reality the common terminology with license issuing authorities is that of “manager on the license”.
The basic requirement for a nominee director is
• Should be a valid resident of the UAE
• Should have valid local UAE address and contact details
The nominee director services are required if
• The parent entity does not have any owners as residents of UAE;
• The parent entity is headquartered in another country and wishes to avail services of a local market expert as
• The owners do not wish to provide any powers to the nominee director, beyond having the name on the license
The UAE Government takes a lot of care in ease of doing business, but also places strong focus on the compliance and legal requirements. Recently, the UAE Government brought in the rule for “economic substance regulations” to avoid foreign entities from parking profits in inactive UAE entities.
One such mandatory requirement to satisfy the authorities is that of a nominee director.
This would ensure that there is due diligence to avoid unfortunate events such as non-compliance on tax payments, breaking any laws, or any other such important aspect of smooth business operations.
This also brings to fore the requirement that simply being a resident is not enough – you need the nominee director to be someone who is on completely prudent, proactive and well aware of regulatory and legal requirements for the role.
In addition to owning The Corporate Group and its subsidiaries, our company owners are not only Emirati citizens, but they possess required educational qualifications to satisfy nominee director requirement, irrespective of the nature of business.
Through nominee director services, we have successfully helped establish local UAE entities in the fields of Engineering, IT Consultancy, Auditing/Financial services and many more.
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