When setting up a business in the UAE, the use of a nominee General Manager is common practice. Under UAE Commercial Companies Law (CCL), the appointment of a General Manager (GM) is a legal requirement both for mainland and free zone registered entities. The GM is chosen and appointed to the role by the company shareholders and has sole responsibility for the day-to-day running of the company and all executive decisions.
The powers and authority of a General Manager are set out in the constitutional documents of a company and/or detailed in a separate power of attorney issued by the company shareholders which can be as extensive or restrictive as is required.
In certain instances, the GM may be unable to fill this position from the outset of a company’s incorporation in which case a nominee General Manager may be required and can be appointed to satisfy the requirements of UAE CCL.
What is a Nominee General Manager?
A Nominee General Manager is an individual appointed by the beneficial owner/s of a company to fulfil UAE statutory requirements and act as manager of the company on behalf of the company beneficial owner.
In the eyes of the law, the nominee General Manager has sole responsibility for the operations and liabilities of the company. However, in practice the nominee plays no active part in any of the business activities provided the company is operating as per the law.
Why is a nominee General Manager required?
The use of a nominee General manager is an interim solution that allows for a company incorporation in the UAE to be completed in instances where the chosen GM is unavailable. This usually occurs when the GM isn’t able to be present at the time of company incorporation and is not in possession of a valid UAE residence visa. Under these circumstances, the nominee can fill this role temporarily while the GM is in the process of obtaining UAE residency.
The situation may also arise if a suitable GM has yet to be selected by the shareholders in which case the use of a nominee allows the shareholders time to recruit a suitable candidate to the position.
It can occasionally also be a means to protect the anonymity of the real company ownership from non-governmental bodies and to protect disclosure of ownership information in case of public enquiry.
What are the benefits of a nominee General Manager?
A nominee GM can help facilitate company incorporation by helping to prevent costly delays and alleviating some of the burden of setting up a company in the UAE for the first time.
The nominee can be chosen not only to sign all company documentation and facilitate other important functions such as opening a corporate bank account. They may also be selected for their knowledge of the UAE market and the connections that they have.
How long can a nominee General Manager be appointed for?
The period of time for a nominee GM is not set in stone and is negotiable. However, it is generally recognized as a temporary solution and a period of less than six months would be appropriate, just to allow the completion of the company incorporation process or until a suitable candidate has been found.
Who is eligible to be a nominee General Manager?
The main requirement is that the individual is a UAE resident and has a UAE address and contact details. Nominees can be both physical and legal since their appointment is solely a temporary management tool to be used by the beneficial owner.
The use of a reputable company to provide this service ensures that your company benefits not only with the appointment of a nominee, but also with valuable local knowledge of the UAE market and the availability of other valuable corporate services.
How can Global Link help?
It can be hard to navigate the legal requirements and intricacies of company incorporation in the UAE without an experienced partner to advise you and liaise with government and regulatory bodies on your behalf.
Global Link has over 16 years’ experience working with local and global businesses, providing bespoke consultancy services for company incorporations in Dubai and the wider UAE.
We can provide nominee General Manager services advise you on any issues surrounding nominee Manager Services to you and your business.
If you need advice on this or for any other company incorporation, visa or PRO service, please get in touch with us on +971 4 553 9901 or email us at [email protected] and we will be happy to assist you.