The use of nominee directors and shareholders remain therefore very effective but this isn’t going without risks for the clients and for the providers of such Nominee Directors services and Nominee Shareholder services
The business of protecting privacy and business freedom is a risky as is often targeted by criminals whom would enjoy an additional layer between them and their illicit activities.
The compliance process should be effective to keep at bay illicit activities, this represents an important time spent just to mitigate the risks.
Working for legitimate clients doesn’t means that the risks aren’t important for a Nominee Director of a Hong Kong company, the client might give instructions to the nominee that are not in accordance with Hong Kong laws and regulations and/or which could trigger risks in other countries.
Having professionals managing the relationships between the individual Directors and the clients is a must, by observing laws and regulations, performing onboarding compliance and monitoring the company activities, reliability is obtained.
Clients seeking for the privacy offered by nominee services in Hong Kong should also perform their own compliance, basically when it’s too easy the offer is tainted.
Low price levels are consequences of a low compliance process, this means that risks are high to see a nominee Director offering services which could trigger investigation, reputational risks or worst to a legitimate client, a kind of pollution by bad governance.