Some UAE free zone investors use nominee director or shareholder services to protect privacy or meet local presence requirements. This guide explains what nominee services are, when they are legitimate, and what risks to consider.
What Is a Nominee Director?
A nominee director is a person or company that appears on public records as a director of a UAE free zone company, while the actual control is exercised by the beneficial owner under a private nominee agreement. Nominee directors are legal in UAE free zones (unlike some other jurisdictions) but come with important caveats.
When Nominee Services Are Used
- Privacy: To prevent the beneficial owner’s name from appearing in public free zone records
- Local presence: To give the appearance of UAE-resident management for banks or government contracts
- Corporate directors: To use a corporate entity as director (allowed in most UAE free zones)
Legal and Compliance Risks
UAE AML Federal Decree Law No. 20 of 2018 requires all UAE companies to disclose their Ultimate Beneficial Owner (UBO) to the free zone authority and Central Bank in a non-public register. Nominee arrangements must be declared to the UBO register — using nominees to hide beneficial ownership from the UAE government is a criminal offence. Banks conduct thorough UBO due diligence and will identify the true owner regardless of nominee structures.
Nominee Shareholder Services
Nominee shareholder services (where a service provider holds shares on behalf of the beneficial owner under a trust deed) are offered by registered corporate services providers in DIFC, ADGM, and many free zones. These are fully legal when the UBO is properly disclosed. Costs: AED 3,000–8,000/year for a nominee shareholder service from a reputable provider.
Pricing Evidence & Source Notes
Use this profile as a planning guide, not a final invoice. Confirm the current package, activity wording, visas, office or flexi-desk requirement and renewal amount before payment.
| Free Zone | Package | Year 1 Cost | Renewal Cost | 3-Year Total | Visa Option | Office / Flexi Requirement | Year 1 Confidence | Source Type | Conflict Status | Last Reviewed |
|---|---|---|---|---|---|---|---|---|---|---|
| UAE Free Zone Nominee Director and Shareholder Services: What You Need to Know | Current authority package | Quote-based - confirm current package Confidence: Needs confirmation |
Quote-based renewal - confirm current package Confidence: Needs confirmation |
Quote-based 3-year total - depends on renewal Confidence: Needs confirmation |
Depends on package and office allocation | Authority quote required | Authority quote required | Current package / renewal confirmation required | June 2026 |
| What is included | Confirmed only after authority or partner quote. |
|---|---|
| What is not included | Visas, insurance, medical, Emirates ID, office upgrades, amendments and cancellation unless quoted. |
| Hidden-cost risk | Confirm establishment card, visas, office/flexi desk, insurance, renewal and cancellation before payment. |
| Banking difficulty | Medium - depends on activity and documents |
| Best fit | Founders comparing this free zone against activity, visa, office, banking and renewal requirements. |
Source evidence: Review source | Methodology | Corrections.
Prices can change based on free zone authority updates, activity selection, visa count, office or flexi-desk requirement, shareholder structure, establishment card, immigration file, medical test, Emirates ID, insurance, banking support and consultant service fees. Last reviewed June 2026. Always request a current quote before payment. View methodology or compare all rows in the UAE Free Zone Cost Index.