The Benefits of having a Director in the UAE
Companies in the UAE are required to have a managing director (in the UAE simply referred to as the Manager) appointed at all times. It is not required for the managing director be locally resident but having a director that is a resident of the UAE should open doors - commercially speaking. It will provide credibility to the company as its UAE customers will often expect the company to have a local point of contact.
In case you are not (yet) ready to move to the UAE yourself or have staff that can be seconded we can assign a reputable experienced manager from our local network that has industry-specific knowledge or can help you with recruiting one. He or she can take care of day-to-day management. The right director will ideally bring industry-specific local expertise and a strong local network of high-level contacts.
Assisted by our legal advisors, accountants and company secretary the director can ensure compliance with local rules and regulations. In addition, a local director is the most important aspect of economic substance
It’s up to the company and professional director to agree on what he will do, how he should do it, and which responsibilities he will take on. The director has a statutory requirement under the company law to act in the interests of the company and in accordance with its memorandum and articles of association.
For certain matters the director will be required to obtain shareholder’s approval. Also he has to adhere to the director’s service agreement. This agreement can provide detailed instructions and should take into account all possible eventualities. We can help draw up a director’s service agreement. This agreement will outline the duties and responsibilities of the director and allows you to detail exactly the level of discretion the director will have.
Provided the local director retains sufficient discretion over the company’s affairs, retaining a local director also enables you to take advantage of the UAE’s tax benefits
without having to live here. Note that the specifics will depend on the tax laws of the country where the shareholder resides. Most countries deem a company to be a tax resident in the jurisdiction in which it is centrally or effectively managed and controlled.
The professional director's service agreement places the management and control of your company firmly within the UAE, so you can remain a resident in a high tax jurisdiction but still enjoy the tax-free benefits of running a company in the UAE.
If you need skilled employees, we can assist with finding and hiring individuals on contracts for varying periods.
If having a local director for your company sounds interesting to you, do not hesitate to contact us
for a free consultation.