Nominee Directors in Offshore Merchant Accounts

The use of nominee directors is common practice in offshore structures. It is practical and completely legitimate.

But, does this practice cause disadvantages when it comes to offshore e-commerce? Not really – the only thing we should take into consideration when planning our offshore financial structures is the fact that acquiring banks and processors will always request, as part of the approval file, personal ID documents on all directors and shareholders. The documents normally required are: Copy of passport, proof of address/residence, and contact details such as phone numbers and e-mail addresses.

This does not mean that nominee directors or shareholders need to sign contracts, nor will they be the contact person for the merchant account provider.

It’s important to clarify with your offshore service provider the purpose for which you are forming the company, and they will be in a position to advise you.

In general, acquiring banks and processors who accept offshore business are accustomed to these set-ups and are comfortable with them. However, good planning can help you reach your goals and find the best solutions for your needs.