Professional active resident director in 2021
Since 2003, Healy Consultants Group PLC supplies professional active nominee resident director services in every country on the planet:
What is active nominee director?
- A professional active resident director will play a pre-agreed role in the management of our Clients’ businesses, in compliance with the terms and conditions of a directors Professional Services Agreement;
- For example:
- An active director will review and sign legal contracts and agreements with third parties including customers, suppliers, staff and investors and Government bodies;
- An active nominee director may act as bank signatory and action outgoing funds transfers (if required);
- An active director may act as the company representative in all communications with the local Government;
- An active Director may timely accurately and completely discharge the company monthly & quarterly Government reporting including payroll and sales tax and annual legal, accounting and tax obligations;
- The professional active nominee resident director can be removed and replaced with a week’s notice.
Our requirements to act as active director for our Client’s businessBefore accepting a legal appointment as a professional active resident director, Healy Consultants Group PLC will request our multi-national Clients to:
- Sign a Professional Services Agreement and Indemnity Agreement;
- Sign our standard engagement letter (click link) and supply Know Your Customer due diligence documents to our in-house Legal and Compliance Department;
- Sign a quality detailed business plan describing the nature and volume of the business activities of our Clients – our team will prepare this document for your review and approval;
- Supply us with complete information re the Group structure of the business and its ultimate beneficial owners.
Appointing an active director to your business
- Within two weeks, Healy Consultants Group PLC will email our Client a detailed comparison table contrasting five candidates to act as professional active director;
- The comparison table will include i) annual director fees and ii) candidate resume and iii) Know Your Director due diligence documents and iv) much more;
- Our Client chooses their preferred candidate and Healy Consultants Group PLC arranges a multi-party free dial in conference call for a detailed interview discussion;
- A face to face discussion \ interview will follow between Client and professional active resident director;
- Following successful completion of the above, our Client signs a Professional Services Agreement with the professional active resident director;
- Immediately thereafter, Healy Consultants Group PLC will file the company secretarial forms with the local Registrar, legally appointing the new director. The timeframe to secure approval from the Registrar varies from country to country. As always, Healy Consultants Group PLC will aggressively negotiate with the Government to secure fast-track review of the application;
- To minimize annual director fees and maximize corporate governance, Healy Consultants Group PLC recommends the new professional active resident director reports to our Client;
- If our Client wants Healy Consultants Group PLC to daily supervise the professional active resident director, additional annual fees will apply.
Our fees to act as professional active director
- For a fee of US$ 3,450, Healy Consultants Group PLC will email our Client a detailed comparison table contrasting five professional active resident directors;
- On behalf of our Client, Healy Consultants Group PLC will aggressively and skillfully negotiate with the candidates to minimize their annual director fees;
- The monthly & quarterly fees are settled directly between our Client and the professional active resident director;
- Professional active resident director fees vary per country. For example, average annual active resident director fees in Ethiopia amount to US$ 15,000 per annum. By contrast, average annual active resident director fees in Ireland amount to approximately US$ € 40,000 per annum. That said, annual fees in each country are lower, if the daily, weekly and monthly responsibility is low;
- Being an active director exposes that individual to reputation, litigation and financial risk. Consequently, few candidates are attracted to this active role.
Why appoint an active nominee director?Multi-national Clients’ wish to appoint a professional active nominee resident director because:
- Business expertise of nominee director – some of our Clients want the benefits of a professional who speaks the local language and boasts specific experience in the same industry including business relationships with potential Clients and Government officers;
- Licensing requirements – in many regulated industries, the appointment of active qualified director(s) is a prerequisite to obtain a license. This is for example often the case in the financial services industry;
- DTAA access – in some countries, the tax authority grants double taxation avoidance treaty (DTAA) access only to businesses managed locally. Consequently, the appointment of a resident active resident director is a legal way to get access to DTAAs and legally minimize withholding tax on dividends distribution and interest payments;
- Substance requirements – in line with the OECD BEPS recommendations and the EU’s latest directives, multiple jurisdictions including i) the Channel Islands jurisdictions and ii) the BVI and iii) Gibraltar are requiring local foreign-owned entities to have local directors and an office. While Healy Consultants Group PLC’s preferred strategy is to re-domicile these companies (click link), our Firm can supply on a case by case basis active directorship services to legally meet this substance requirement;
- Independent director – Businesses looking to attract i) Venture Capital, Private Equity or other investments or ii) participating in procurements with international organizations or iii) applying for a loan of a significant amount with banks, will be requested to appoint an independent director.
ConclusionAs a short-term solution, engage Healy Consultants Group PLC to find a temporary quality professional active nominee director for your local company.
As a long-term solution, Healy Consultants Group PLC will recruit a quality professional employee to be a permanent director for your local company.