Nominee Shareholding Services in UAE:  Nominee Shareholder For Your UAE Company

January 20, 2023by Mohammed Rahali

Nominee Shareholding Services in UAE:  Nominee Shareholder For Your UAE Company

There are a number of important elements to establish when incorporating a company in the UAE and this includes filing in the roles of the director and shareholder. This information is usually on public record and therefore may be in direct contradiction with the business owner’s wishes especially if they want to maintain a high level of confidentiality and anonymity.

What is a Nominee Shareholder?

A nominee shareholder is appointed by a beneficiary owner and acts as a legal, unrelated, third party, who is officially registered as the holder of shares on behalf of the actual shareholder (beneficiary owner). This protects the identity of the beneficiary owner and also shields the beneficiary owner from being on any public records in association with the company. The nominee shareholder does not own shares in the company, or benefit from the shares in any way and they are made to sign a Nominee Shareholder agreement that covers all the terms governing the relationship and also showing that they have no legal claim over the shares in that company. This provides a high level of confidentiality and protection for the beneficiary owner and also protects the beneficiary owner’s shares in the company. The Nominee Shareholder will not be granted access to bank accounts or any other assets, and they will not be able to make decisions or sign any documentation of shares on behalf of the company without the beneficiary owner’s explicit instruction.

For example, a client Mr. James is a business owner and the ultimate beneficiary owner, he wants to protect his identity and maintain a high level of confidentiality as the legal owner of a company. He searches for a solution online and finds Wincore Advisory Group to be offering the services that would enable him to preserve his anonymity and ensure the highest level of confidentiality within that business structure. Wincore then provides his company with a nominee shareholder and all the legalities are firmly in place. It is really that straightforward with an expert Nominee Shareholding service provider.

A few basic information at the time of consultation would be required like:

  • A copy of the business owner’s or beneficiary’s proof of identity and address
  • Copy of business license (if already established)
  • The nature of business
  • The reason why a nominee shareholder is required
  • Other documents or information may be asked by our experts at the time of your consultation.

 

In Brief

  • A Nominee Shareholder is someone appointed by an ultimate business owner to hold shares on their behalf.
  • The Nominee protects the identity of the beneficiary owner and also ensures that the highest level of confidentiality is maintained on behalf of the beneficiary owner.
  • A Nominee Shareholder acts on the instructions of the ultimate business owner.
  • The Nominee’s name will appear in corporate documents and on public registers.
  • The Nominee is responsible for maintaining a company’s legal responsibilities.
  • The Nominee Shareholder may also be named as a Nominee Director upon an agreement.
  • The role of the Nominee Shareholder is immensely valuable and acts as a protector of privacy for the business owners of the company.
  • Utilising the services of a Nominee Shareholder can be an effective tax optimisation strategy.
  • Simply put, a nominee shareholder holds shares on behalf of the business owner and must only act on the business owner’s behalf and cannot take any decisions independently. If this occurs, a breach in the contract agreement will arise, and the nominee shareholder may face legal action.

 

How can we help

Wincore advisory Group can assist you in providing nominee shareholders and non-executive directors (NEDs), to achieve a high level of privacy and confidentiality while complying with the UAE economic substance requirements. Nominee Shareholding services provided by Wincore ensures the highest confidentiality and security of your business operations within the UAE and abroad. Contact our Experts today for assistance on contact@wincoreadvisory.com or +971 4 221 2602.

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Mohammed Rahali

Managing Partner

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