A nominee director is a person who is legally hired to act as a director of a certain company that wants to keep the real director confidential. The reason for anonymity and privacy of the real director could have a number of reasons. However, whatever the case, nominee directors are a safe rescue.

Escape from official records

People usually make use of nominee directors and shareholders to maintain privacy and anonymity. In case a business wants to keep the address off the records, nominees will be the solution. The hired nominee will have a different address that will appear in the legal documents. It is completely legal and there is nothing illegitimate in this process.

Logistical benefits

Offshore companies need bank accounts and other local benefits. It is rather hard for international investors to go through these long procedures. They also don’t get to avail the benefits that a local might have access to. The nominee director fulfills all these roles. The real owner can save time and money while the hired nominee goes around in meetings and gets a bank account opened for the company. Similarly, other local errands that a company requires can be fulfilled by the nominee without the real owner having to go through the hassle. Any required government approvals or licenses can be easily availed with the help of local nominees. Going through this whole process, of course, costs a lot. However, paying decent money to the nominees ends up helping the company save in terms of taxes and other costs that come with an offshore company.

A full charge with privacy

While nominees are acting as the director or head of the company, this doesn’t compromise the authority of the real owner at all. The decision making power remains in the hands of the real owner. Although the name doesn’t appear on any official records, legally the authority remains intact. This does require a degree of complicated paperwork. The paperwork will also include documents that allow the real owners to fire hired nominees whenever their need is fulfilled.

Tax subsidies

In certain cases, companies can get away with taxes completely legally. Let’s say an offshore company is based in a country where the locals have tax subsidies but international investors and owners need to pay a huge percentage. In such a case, the chosen nominee director is a native of the particular country. The company, therefore, gets away with paying the lower tax without breaking any rules. The tax benefits of a country can be enjoyed if the country’s rules are followed. For example, if the country is Cyprus, the company will have to hire a shareholder, one director as well as one secretary who live and work in Cyprus. Local people can be easily hired as nominees in such a case.


To avail all the aforementioned benefits, you shouldn’t hesitate to use a nominee director for your offshore company. They are completely legal and offer a number of benefits to companies, especially new startups.

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