Some business owners want to keep their details confidential during the process of offshore company formation. Here comes the significance of hiring a nominee director. The facility to hire a nominee director will allow them to remain in full control of their business at the same time enjoying privacy. As you are the business owner, you will still have responsibility for the daily business function and the financial information, along with bank accounts. The power of attorney will belong to you and not the nominee director. This person should sign a letter of resignation which will be provided by you to your company board if you want to terminate the person's position.
Nominee directors of offshore companies are merely your representative and do not exercise any authority with the business. Only the name of the Nominee Director will have their name printed in the Company documentation. Nominee directors are often known as front or straw men. You will need to choose a person to be a nominee director who can be trustworthy. As their name might be on the paperwork of your firm for years, however, their reputation can reflect well or badly on your company.
If you run a recognisable business at home for dealing with one particular service or product, branching out to something different offshore might make you want to hire a nominee director. Customers might have ideas that are fixed for your usual business, and this will prevent this. For example, a garments business owner might want to diversify into a sports goods company. As these industries are completely different, customers might be confused and question your knowledge about sporting goods as you are well known in the garments industry. Here you can use a nominee director to provide you with anonymity against these comparisons and provide your company with a chance to start fresh and a better chance to succeed.
However, if you know a resident of the country where you perform offshore company formation as a nominee director, this can be done. Your nominee director must identify himself if requested, hence, it is vital to maintain a good relationship with this person before they sign off as a nominee director of your company.