n Dnominee director or resident director or trustee is a third party who is officially registered as the administrator of a offshore company, instead of its owner or beneficial owner, who can remain anonymous.
PIt may be desirable to assign the Nominee Director a more active role. If the position is held by a natural person, they can participate in the issuance of documents, correspondence or billing. It can even act as a proxy for the bank account, which is quite common in so-called rebilling or transfer pricing systems. These consist of using offshore companies interposed in import or export operations, in order to divert part of the profit to a low tax jurisdiction, thus reducing the payment of taxes.
The Director nominee is provided by providers of offshore servicesAs Foster Swiss, in charge of offshore company creation, or by the resident agent. It can be both a natural person and a legal person, that is, another company expressly established to perform this function.
It is common to use Director nominee in conjunction with a Shareholder nominee or fiduciary shareholder, since thus, the client does not appear neither as owner, nor as administrator.
Because the principal purpose of the Director nominee is to protect the Privacy of the client, its function is merely formal. That is to say, it appears as responsible in the documents of the company, but does not carry out any executive function. He limits himself to signing certain mandatory documents. All operational functions are carried out by the actual owner. Fiduciary directors due to their null executive power are popularly known as front men or straw men.
Normally, the offshore service provider or resident agent charges a small annual fee, which varies depending on the jurisdiction or the agent, but can be around 300 euros. If the nominee Director performs work for the company, that is to say, he has not transferred the management completely to the client through a general power of attorney, he usually also charges a rate per hour worked. If the trustee also acts as proxy for the account, he will invoice a much higher amount, which can reach up to 1000 euros per year.
Many countries have specific legislation that tries to prevent this type of operations, simply considering the income of these companies as if they had been obtained directly by the people who control or manage them. It is what is known as international tax transparency. By using a shareholder and a fiduciary director who also acts as a proxy for the bank account, the owners hide their ties to society, making it extremely difficult for tax administrations to prove a relationship between the two.
In view of the need to have at least one nominee Director or a Swiss resident Director in companies based in this country, we have created for our clients a service that allows hiring a nominee director to direct and co-direct companies, investment funds, financial companies and Swiss foundations.
The Swiss resident director will not interfere in the management or day-to-day running of the company, since decisions about the running of your company will be made solely by you, within the current legislation in this jurisdiction.
We can also offer you registered office and virtual office services in Geneva or Zurich so that, for a small price, your company appears correctly domiciled in Switzerland, with a physical address.