Nominee Director Service in Taiwan
Tetra Consultants offers nominee director service in Taiwan for our international clients. Our full-service package includes Taiwan company formation, nominee director services, company secretary and registered address, corporate bank account opening and accounting and tax obligations.
Are you a business owner looking to expand your business into Taiwan? If so, you may have come across the terms “Taiwan nominee director” or “Taiwan resident director” in your preparation for business incorporation.
What is a nominee director?
- A resident director refers to a Taiwanese director who resides in the country, while a nominee director refers to a qualified individual who is appointed as your Taiwan entity’s director.
- Although Taiwanese business incorporation laws do not specifically have nationality requirements for the company director, a nominee director is still useful for a variety of reasons that will be elaborated below.
- As finding a suitable candidate to take up the position of nominee director in Taiwan is time-consuming and challenging, Tetra Consultants serves to bridge this gap by providing a cost-effective nominee and resident director service in Taiwan, ensuring that all our clients can secure a Taiwan representative director if desired.
Advantages of using Nominee Director Service in Taiwan
- For business owners who value personal privacy, signing up for representative director service in Taiwan will allow you to maintain anonymity and confidentiality of your personal information, as the nominee director’s identity does not need to be publicly disclosed in the company registry.
- When you are opening a corporate account with a Taiwan bank for your newly established entity, you may require a local representative to visit a Taiwan branch for an interview. Our qualified Taiwan representative director will then be able to attend the interview on your behalf at no additional cost, so that you do not need to spend time and expenses on travel.
- In addition, a nominee resident director in Taiwan can help to bridge language barriers. Foreign investors may face difficulties when communicating with the Taiwanese government authorities and banks. This is because most of the legal documents and meetings in Taiwan will likely be conducted in the official language, Mandarin Chinese. A Taiwanese nominee director will then be able to help foreign investors successfully navigate communication when carrying out business activities in the jurisdiction.
- As such, by appointing a representative director in Taiwan, your business will be able to minimize overhead costs. You will be able to stay compliant with Taiwan regulations and procedures requiring a local representative at any stage of the business set up process, while avoiding additional expenses.
- Furthermore, Nominee Directors can fulfil the required legal duties and obligations of a director without interfering in the decision-making process or day-to-day operations of your business, allowing you to maintain full control and authority.
- Tetra Consultants is able to provide a one-stop service with the full suite of services for your Taiwan business to remain compliant.
Risks of appointing a nominee director in Taiwan
- Although nominee director services have multiple advantages, there are also a few disadvantages involved in the process. Namely, the nominee director is able to have the same legal abilities granted to other directors in a Taiwan company, to take part in the decision-making and running of the business. This could potentially undermine your authority or control of your company.
- However, Tetra Consultants will mitigate this risk by drafting a Nominee Director Agreement with clearly laid-out terms legally binding all parties to the contract, to prohibit the appointed nominee from interfering in the daily operations of your business unless specifically requested.
- The nominee will also not have access to your business’ bank account at any point in time, so that you do not have to fear the mismanagement of your funds or capital by a third-party. Hence, our team will ensure that you are able to maintain full control and authority over your company.
Risks undertaken by a nominee director in Taiwan
- The nominee director himself or herself can also face or incur risks in taking on the role of nominee director. The main risk is that the nominee director will also be held fully liable by the Taiwan legal system in the event that the business or office holders violate a law at any point in the process. As nominee directors are seen as equal to the other directors in the eyes of the Taiwan law, the nominee director will have to face the full litigation and fiduciary risks under Taiwanese laws.
- However, Tetra Consultants will act to mitigate this risk by conducting the necessary rounds of enhanced due diligence checks for the nominee director beforehand, such that the shortlisted individual has good track records and extensive knowledge of the local regulations and legal system and hence is trust worthy. As such, our elected nominee director will be able to monitor the company’s activities closely to ensure strict compliance to regulations at all times.
Why choose Tetra Consultants’ Taiwan nominee director services?
- The nominee director appointed by Tetra Consultants will have already gone through strict KYC checks and be knowledgeable of the Taiwanese regulations, such that he or she is able to assist your business in maintaining full compliance with all laws.
- By engaging Tetra Consultants’ nominee director service Taiwan, you will also be able to maintain full authority and control over your business, as the terms of the Nominee Director agreement we draft will ensure that the nominated person will have limited authority and not be able to interfere in the daily operations and running of your business.
- Significantly, unlike other firms, we do not charge our international clients with deposits and there are no hidden costs at any stage of the engagement. We value transparency highly, and all payment terms will be stated clearly in the appointment letter prior to the start of the engagement with us.
How can Tetra Consultants provide Taiwan nominee director service?
- When engaging a nominee director, the individual must possess experience in corporate governance and annual reporting or other financial obligations. Our compliance team is able to provide nominees who have passed our enhanced due diligence checks. The nominees are usually either our in-house employees or long-term partners and are professionals with experience and qualifications in the fields of law, accounting, or tax.
- Upon the commencement of the engagement, Tetra Consultants will provide you with the relevant KYC documents of the Taiwan nominee director, including a copy of his or her resume, passport copy, proof of residential address as well as legal records proving lack of criminal activity.
- Tetra Consultants’ legal team will also draft a nominee director agreement and statutory declaration to be signed by all parties. This is to ensure that the company is 100% under your management and that you receive full indemnification. Unless specifically requested, our nominee director service Taiwan will also not include the nominee playing an active role in your business.
- After settling the nominee director fee, Tetra Consultants will carry on to register the Taiwan company and appoint the Taiwan nominee director with the Ministry of Economic Affairs (MOEA).
- The nominee director in Taiwan will not be able to access your business’ bank. As such, you will be able to conduct business, without worrying about the risk of your funds being mishandled.
- As the Taiwan resident director may have to face litigation and fiduciary risks, Tetra Consultants’ compliance team will require specific information for due diligence checks, as listed below:
- Identity documents of the Ultimate Beneficial Owners (UBOs) and non-resident directors
- Documents of the parent business (in the event a corporate shareholder is appointed)
- Nature of intended business activity
- Dormant or active status of the Taiwan company
Contact us to find out more about Taiwan nominee director services. Our team of dedicated professionals will revert within the next 24 hours.
What is a nominee director?
- Nominee directors act as the director for businesses, via a nominee director agreement.
- A nominee director also does not hold any shares in the company and will not be involved in your everyday business operations or have access to your corporate bank.
- Unless specifically requested, most nominee director roles will also be passive. This means that despite being appointed as an office member of the company, a nominee director is prohibited from making decisions or performing duties at his sole discretion. He is only allowed to act based on instructions given by the Ultimate Beneficial Owner (UBO) of the company.
Is nominee director appointed by promoter?
- The appointment of the nominee director is usually submitted by the shareholders of companies. A nominee director agreement and statutory declaration will be signed by all parties to finalize the appointment of the nominee director.
Is Nominee Director a director?
- Yes, a nominee director fulfils the roles of a typical director. The only difference is that the nominee director is a third-party appointed via a nominee director agreement to act as the director for a certain company.
How do I appoint a nominee director in Taiwan?
- Tetra Consultants will assist our international clients to appoint a reputable nominee director in Taiwan. Tetra Consultants’ compliance team will first shortlist a qualified individual with experience in corporate governance and annual reporting and filing and conduct KYC checks.
- Upon commencement of the engagement, Tetra Consultants will provide you with the KYC documents of the Taiwan nominee director.
- Tetra Consultants’ legal team will also draft a nominee director agreement and statutory declaration to be signed by all parties.
- After the settlement of the nominee director fee, Tetra Consultants will proceed to register the Taiwan company and appoint the Taiwan nominee director with the MOEA. You will then be able to proceed with the remaining steps in the company incorporation process.
Can you have a nominee director?
- Yes, you can legally have one, and it is even necessary in some other jurisdictions such as Singapore. Simply appoint a qualified individual who passes the relevant KYC checks and complies with the jurisdiction’s regulations for nominee director requirements, and you will have a nominee director to act as your director.
- Tetra Consultants assists our international clients to fulfil KYC checks through a hassle-free process.
What other jurisdictions can I consider besides Taiwan?
- If you are looking to expand into Asian markets, you can also consider other reputable jurisdictions such as Singapore, China, or Hong Kong. Tetra Consultants also offers nominee director and company incorporation services for Hong Kong, Singapore, China and more.