Nominee services of directors and founders have been used by companies for decades. There are a number of reasons why beneficial owners use nominee directors or “shadow” directors:
Although, of course, there are legal documents indicating the true benefits of a recipient and the manager of a company (trust declaration, power of attorney), it is the nominee person that is displayed in the official registers of companies, allowing the beneficiaries to be hidden from the public eye. Additional patronage is provided by professional nominee directors – licensed lawyers and trustees of trusts, who can manage the structure of the company and a bank account on behalf of and according to the instructions of the client.
COMPLIANCE (COMPLIANCE WITH COMMERCIAL AND TAX REGULATIONS)
In some countries, commercial regulations stipulate that only a local resident director may be involved in the structure of a company. The same rules may apply to tax compliance.
In many European countries, a local director may be one of the factors in proving the tax residency of a company. Therefore, a resident director is often recommended for a resident company structure.
In most offshore companies, having a nominee director and founder is taken for granted. In other companies, especially in Europe, a more exclusive service of a nominee director with professional experience and reputation is in demand.
The specialists who work at the association Welcome to Serbia recommend using the services of nominee directors and shareholders in order to exclude mentioning the names of the true owners of an offshore organization in constituent and other documents, especially if the registration is carried out in a country where the information about the company participants is publicly available. As a rule, the services of nominees are used in order to ensure the highest level of confidentiality of the client’s business information.