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Glossary

Nominee director

A local resident appointed as a company's director on paper to satisfy a jurisdiction's residency requirement, while real control stays with the owner.

Some jurisdictions — Singapore and Ireland among them — require at least one director who is resident locally. Founders who don't live there often use a nominee (or resident) director service to meet the rule, keeping day-to-day control themselves through the shareholding and a service agreement.

Why it matters

A nominee solves a legal requirement, but it is an annual cost and a point of trust — and it does not change where the company is really managed, which is what tax authorities ultimately care about.

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