Nominee Director

A nominee director is a person or entity that is appointed by a company to act as a representative or delegate of the company and to perform certain duties on behalf of the company, such as attending board meetings and signing documents. The nominee director does not have any direct ownership of the shares of the company.

There are several reasons why one may hire a nominee director. One of the main reasons for hiring a nominee director is to provide anonymity to the true owners of the shares. This can help to keep their identity and personal details private, which is particularly important for wealthy individuals or high-net-worth individuals who may have security concerns or wish to protect their privacy. Another reason for hiring a nominee director is tax planning. In some cases, hiring a nominee director can reduce the tax liability on ownership of shares, by allowing the beneficial owner to own the shares through a tax-haven-based company, which in turn allows them to benefit from lower tax rates in that jurisdiction.

The process of hiring a nominee director typically involves selection of nominee director appointment as a director, updating director’s register and maintaining nominee relationship.

Fee associated with hiring a nominee director, which varies depending on several factors such as the location of the nominee director, their reputation, and the complexity of the shareholding arrangement.

One of the main benefits of hiring a nominee shareholder is that it can help to reduce tax liabilities by allowing the ownership of shares through a tax-haven-based company, which in turn allows the beneficial owners to benefit from lower tax rates in the chosen jurisdiction. This can help to minimise the overall tax burden on the ownership of assets.

However, the use of nominee shareholders is not without risk, and there can be potential tax implications for both the nominee shareholder and the true owner of the shares. The use of nominee shareholders may also result in the company being subject to additional tax liabilities or restrictions on the use of certain tax-saving structures.

Nationality and Citizenship of the nominee depends on various underlying factors. This can be asserted upon preliminary discussions and understanding.