Offshore Banking FAQ

What is a Nominee Director?

A nominee director or third-party director, is a third party, who is officially registered and acts as a Director of an offshore company. Nominee director services are widely used for privacy reasons as well as in some jurisdictions it is required by law that at least one director is a resident of that particular offshore jurisdiction (for example, Singapore). If the nominee director is required to be a local resident by law, he or she is often called a Resident Director instead of Nominee Director.

The nominee director can be private individual or other offshore company – dedicated corporate body. Many nominee directors are regulated in offshore jurisdictions where they are registered/located and it would be an advantage to use the services of the nominee director who is controlled and regulated like the offshore bank, offshore insurer or other offshore professional. Although regulated bodies often have higher standards regarding due diligence requirements and their services seem to be more expensive, avoiding potential problems in future can save much more than an annual fee for services of a professional and regulated Nominee Director.

The Nominee Director may also act as an offshore bank account signatory. This is the case when complete offshore company and offshore bank account management services are provided.