A “Nominee” director plays a vital role in offshore company operations and bank accounts. Throughout this article, we will delve into what a nominee director entails, their responsibilities, and their authority.
What is a Nominee Director?
A nominee director is the individual responsible for officially registering your business and representing it locally in the public records of the offshore jurisdiction. Once the company is established, this nominee facilitates a complete transfer of the company’s powers to the investor, i.e., you.
Before sending it to the bank to open the professional bank account, a notary notarizes the document certifying the full transfer of power for legalization. This ensures that you, as the investor, are the sole beneficiary with rights over the company and its accounts.
What is his role?
The nominee director’s role is primarily to ensure that the economic beneficiary, which is you, fulfills annual local obligations. For example, it includes paying the flat-rate registration tax and renewing the company’s registered office. They do not have any operational or decision-making authority within the company. But, they rather serve to maintain the anonymity of the beneficial owners.
What are his powers?
In terms of powers, the nominee director’s role is strictly limited. They do not possess any operational authority within the company, meaning they are not involved in day-to-day decision-making or management activities. Furthermore, the nominee director is not privy to information regarding the bank where the company’s accounts are held. They do not have signing authority, nor can they access balances or transaction records.
Instead, the bank operates solely based on instructions provided by the economic beneficiary, who is the individual that opened the account. This means that you, as the economic beneficiary, hold full control and authority over the company’s financial matters. You have the power to initiate transactions, monitor account balances, and oversee all financial activities conducted through the company’s accounts. This arrangement ensures that you retain complete autonomy and transparency over the financial operations of your business.
