In 2021, the UAE Commercial Companies Law (CCL) was amended to allow foreign investors to own 100% of their mainland company. In this article, we will explore the benefits of corporate nominee structures in the UAE.
The United Arab Emirates (UAE) has long been a magnet for foreign investors due to its robust infrastructure and thriving economic landscape. However, certain regulated industries still require a local Emirati partner and there are several benefits to have a 51% local shareholder. Find out more about company formation in the UAE.
What are the benefits of Corporate Nominee Structures in the UAE?
1. Business Activity and Regulatory Compliance:
In the UAE, business activities are subject to stringent regulations imposed by various authorities. Leveraging a corporate nominee structure ensures that your business complies with these regulations while maintaining a streamlined operational flow. This is particularly vital for industries subject to specific regulatory requirements like military, defence, insurance, etc.
2. Land, Property, and Asset Ownership:
The UAE’s flourishing real estate sector has attracted businesses seeking to establish a physical presence in the region. Corporate nominees play a pivotal role in facilitating seamless land and asset ownership, allowing businesses to navigate the complexities of real estate transactions while maintaining flexibility and control.
3. Debt Management:
Businesses often encounter financial challenges that may lead to the restructuring of debt. A corporate nominee structure offers a strategic solution by providing a separate legal entity to manage and negotiate debt-related matters, shielding the primary business from potential risks and consequences.
4. Taxation Efficiency:
Corporate nominees can be strategically utilised to optimize taxation, ensuring that businesses can take advantage of favorable tax regimes via nominee shareholding while maintaining compliance with local laws.
5. Joint Ventures:
Collaborations and joint ventures are commonplace in the UAE’s diverse business landscape. Corporate nominees provide a flexible and efficient framework for businesses to enter into joint ventures, fostering strategic partnerships without compromising control or jeopardizing their primary operations in case of stalemates.
6. Manufacturing for ‘Made in UAE’ Stamp and Customs Concessions:
For businesses seeking the prestigious ‘Made in UAE’ stamp and concessions on customs duties, a corporate nominee structure proves invaluable. This framework enables efficient manufacturing processes. It also ensures that businesses can navigate the intricacies of customs duties, contributing to a competitive edge in the market.
How CBD Can Assist
CBD Corporate Services offers a secure, robust corporate nominee structure that ensures full compliance and control of your business across UAE, Qatar, Oman, Kuwait, Bahrain, and Egypt – allowing you to confidently expand and thrive in new markets.
To learn more about corporate nominee structures in the UAE, email: enquiries@cbdcorporateservices.com or call/Whatsapp +971 56 218 4695.
Authored by Brad Williams – Consultant at CBD Corporate Services
