What is a nominee director in Hong Kong?

Hong Kong nominee director refers to someone brought on to serve as the nominal director of the firm but acting officially on behalf of the beneficial owner of the firm, i.e., the person who actually controls the firm. This practice is routinely observed among foreign investors, particularly those seeking anonymity, confidentiality, and adherence to regulations but aiming to satisfy the legal provisions of Hong Kong.

Major details concerning the nominee directors of Hong Kong:

• Statutory requirement: At least one natural person should be the actual director of every company in Hong Kong. Nominee can be used for this requirement whenever the actual owner doesn't want to be registered in the records of public records.
• Restricted power: The nominee director typically performs an official and non-executive function. They also never make decisions related to business unless they are sanctioned by the beneficial owner.
• Confidentiality: The identity of the beneficial owner is kept anonymous, as the Companies Registry only lists the nominee's name.
• Control and protection: Legally binding agreements, including the use of Nominee Director Agreement and Power of Attorney, are employed so the nominee only does what the owner tells him or her to do.
• Compliance: Nominee deals are permissible under Hong Kong law, as long as they are clear to the governing authorities and are not put to illegal uses.

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