In many countries around the globe, entrepreneurs incorporating a company are legally required to appoint a Nominee Director who may either be: (1) a citizen of that country, or (2) a foreign national with a valid resident permit. But it is mandatory for the local director to be living in that country with a valid residential address.
In Greece, the obligation of appointing a local director is mostly for Private Company. A Private Company is managed and represented by one or more managers who must necessarily be natural persons. In Greece, every Private Limited Company (IKE) requires at least one director who must be (1) insured in the National Insurance Organization, and (2) must be a Greek or EU Citizen with a working permit in Greece. This Director represents the company in front of the Greek Authorities and is also liable for any debts or liabilities of the company, and will be the one that is liable for the company and its activities.
Benefits of Appointing a Nominee Director in Greece
Having a local director for the company ensures a wide range of benefits. It includes:
The nominee officers are featured on the official record of the company allowing the beneficiaries to remain invisible to the public eye. As an added buffer, there are professional full-service nominee officers such as licensed attorneys and trustees, who manage the complete company structure on behalf of the client, including the bank account.
2. Corporate and Tax Compliance
In some jurisdictions, corporate requirements foresee only resident directors as acceptable for registration purposes as well as for tax compliance. Hence, local nominee directors are chosen to represent the company.
3. Tax Residence
In the EU, a local, resident director is often one of the factors that prove a company’s tax resident status. Therefore, it is often suggested to incorporate such a director within the company structure.
4. Time Saving
A local director will represent your company after the appointment. They will act as the primary face of the company hence reducing your paperwork and administering most of the office job single-handedly. They are also liable for the debts and liabilities of the company.
The appointed nominee will maintain superficial interest in the Company business and will accept instructions in respect to the operation and administration of the legal entity by the beneficial owners of that entity or any other person so authorized by the beneficial owners to give such instructions.
Apart from this, the cost of the Nominee Director Services depends on the agreed responsibilities that the Director will have. The responsibilities can be different for every company like he/she can only represent the company or he/she can have other responsibilities like getting a license for the company (if needed), etc.
Because of the gravity of the responsibilities and the liabilities that the Nominee Director might have, we provide the nominee director service with due diligence and risk estimation. If you are in need of appointing a local director for your company in Greece, do contact us today – we’d be happy to assist you.