As Dubai continues to cement its reputation as a leading destination for global investors and entrepreneurs, the pressure is on for businesses to find ways to protect privacy while ensuring they are compliant with local laws. Thankfully, there are a number of services that have been specifically designed to offer effective solutions for investors trying to navigate these challenges – and nominee shareholder services are one of the most popular. But, if you’re considering using a nominee shareholder service, it is essential to understand the legal frameworks. In this article, we will walk you through the ins and outs of nominee shareholder services and explore:

  • What is a nominee shareholder?
  • Nominee shareholders service in Dubai
  • Benefits of using nominee shareholders
  • How to choose the right nominee shareholders service in Dubai
  • About Charterhouse Lombard

What is a nominee shareholder?

A nominee shareholder is a person or company who holds the shares in a business on behalf of the actual owner. If you want to set up a company in Dubai but need to keep your involvement private, you can use a nominee shareholder. You will remain the true owner of the business, while the nominee shareholder acts as a placeholder. It’s a common solution used all over the world to comply with local laws, but it is particularly popular in regions where foreign investors need to meet certain ownership requirements or in jurisdictions that require a local partner or shareholder.

Nominee shareholders service Dubai

Many businesses decide to use a nominee shareholder service for privacy and confidentiality reasons, but there’s a whole spectrum of business structures and scenarios that make use of them. Let’s explore some of the most common examples.

  • Trusts and estate planning
    Nominee shareholders are commonly used in trust arrangements and appointed to manage the trust’s assets on behalf of real beneficiaries. It keeps their names off the official documents, allowing them to remain anonymous on public records. This helps safeguard the identities of those benefiting from the trust and ensures they maintain their privacy throughout the process.
  • Offshore companies
    Offshore companies established in jurisdictions with strict privacy laws might use nominee services to protect the beneficial owner for asset protection, tax optimisation or international trade. It means that the owner can enjoy the financial advantages of operating offshore while keeping their identity confidential.
  • Joint ventures
    A nominee shareholder service can work well when one party wants to remain anonymous and maintain an investment without being publicly associated. The nominee shareholder can act as a silent partner investor, while the active partner manages operations. This allows the owner to maintain investment interests without being publicly associated with the business venture.
  • Corporate governance and management
    Sometimes, corporations or publicly listed companies will have specific legal or corporate governance frameworks that need to be complied with, such as requirements for a certain number of independent directors or officers. Using a nominee shareholder services allows the beneficial owner to delegate control while maintaining operational influence. This ensures compliance without compromising on business ownership.
  • Foreign ownership in restricted markets
    Foreign ownership is restricted in certain regions, so a nominee shareholder can enable foreign investors to participate in the local market by ensuring the business meets legal requirements. It means that international investors can potentially gain a foothold in markets where direct ownership might not be permitted.

If you have any questions about whether your business could benefit from a nominee shareholder service, get in touch with our expert team of advisors at Charterhouse Lombard for advice today.

Benefits of using Nominee shareholders

  • Privacy and confidentiality
    This is one of the most significant advantages of using a nominee shareholder account. It allows business owners to keep their ownership private – the nominee shareholder legally holds the shares in the company while the actual owner remains anonymous. This ensures total confidentiality since there is no need for the owner to publicly disclose his/her name in official company documents and records. This is even more valuable in regions with strict privacy laws or in industries where discretion is essential.
  • Full control and legal protection
    A business owner still retains total control of the business through a nominee agreement, which clearly outlines the rights, responsibilities and limitations of the nominee. So, a business owner can exercise total control over all business decisions and operations, and there is no potential for the nominee to interfere in the management. This provides legal protection for both parties and also means that the nominee cannot act outside the terms set out by the business owner, effectively safeguarding their interests.
  • Mitigates risk
    If a business owner wants to avoid unwanted attention, using a nominee shareholder can help maintain a lower profile. It can also help safeguard a business owner from potential financial or legal risks, as well as reduce exposure to liabilities or legal claims. In this way, owners can minimise the risks of being directly associated with specific legal frameworks or financial issues.
  • Simplified share transfers
    Should you wish to sell or transfer shares, the process is made much simpler with a nominee shareholder. Instead of a direct transfer, a business owner can instruct the nominee to execute the transfer on their behalf.

How to choose the right nominee shareholders service in Dubai

Choosing the right nominee shareholders service in Dubai is essential for those looking to protect business interests and personal privacy. Here’s what to look out for to ensure you make the right decision:

  • Expertise
    Choose firms with proven experience in Dubai, particularly in areas like local regulations and corporate governance. While it might be tempting to choose a global provider, make sure you choose one with an in-depth knowledge of UAE laws to guide you through complex requirements. You should also make sure they have experience of handling businesses similar to yours. For instance, if you manage a large-scale enterprise, avoid partnering with providers that have historically only served startups and SMEs.
  • Range of services
    A good nominee shareholder service should offer a wide range of solutions to support your business throughout its lifecycle, from company formation to virtual office solutions to banking services. This will ensure more streamlined business operations.
  • Reputation
    Look for companies with positive client testimonials, strong references and a good track record of ethical practices. You will need a service that offers responsive, accessible and proactive solutions. Check for affiliations with reputable business organisations and bodies too.

About Charterhouse Lombard

At Charterhouse Lombard, we specialise in helping investors and entrepreneurs thrive in the UAE. With over 18 years of experience, we have helped countless investors set up and succeed in Dubai and beyond. We offer a range of services, including the formation, registration and administration of UAE offshore companies, including providing directors, nominee shareholders and establishing corporate bank accounts. We also offer onshore company services, as well as UAE residency advice.

If you are considering using a nominee shareholder or would like to learn more about the service, get in touch with our team of experts today to find out how we can help.