Person(s) of Significant Control (PSC’s)
Some jurisdictions require the disclosure or declaration of the company’s directors and shareholders for public records.
Due to the changes in regulatory requirements, certain international protocol requirements now exist where the identity of the true beneficial owner(s) and/or person(s) who indirectly control the affairs of a legal entity/company are nor required to be on a register, which will be disclosed to the authorities, both legal and taxation related enquiries would be able to obtain details of any beneficial owner(s) or person(s) who have a ‘significant control’ over the decisions made by the directors.
Some jurisdictions do not require this information to be available to the public, so a certain amount of anonymity is available for any/all lawful activities, without any formal disclosure being made, unless required by law.
Nominee Director(s)
A Nominee Director would represent the director of the company and will be used for security reasons to protect the personal information of the actual director.
A contracted Nominee Director will disclose the necessary information such as passport numbers without you having to share what you don’t want to.
This means that the Nominee Director volunteers another set of information in place of your own.
Control of your business activities, bank accounts, and other managerial endeavours are still entitled to you under certain circumstances and restrictions, and will not be hindered by the nominee, whose role is restricted to that of company incorporation.
The advantage to having a nominee is that you will have the opportunity to incorporate in tax havens like Seychelles and Hong Kong, or the new ‘White List’ jurisdictions such as the Isle of Man, with less personal risk.
Power of Attorney
Rights to your company will be protected by power of attorney. This certifies your full ownership of your shares while the nominee represents you and restricts his actions from the actual running of your company.
All actions made by the nominee will be under this contract until it expires, upon which all rights revert solely back to you.
It is therefore important for your Nominee Shareholder to be reliable and trustworthy, and your agreement to be free of loopholes that can be exploited by the nominee. EBG ensures a completely secure contract between you and your Nominee Director.
Our candidates are screened and must pass rigorous requirements in order to be deemed suitable to do business with our clients.
Nationality of Nominee Director
We make sure to assign a Nominee Director offshore from where our client resides to better protect you.
When both parties are located in the same country under the same laws, the security provided by the Nominee Director to you is compromised as all systems apply to both of you.
To avoid this risk, we make sure you live in different countries.
Opening Bank Accounts
While you are free to open a bank account from anywhere in the world, we recommend you open one with a bank who recognizes the nominee system.
This will protect your financial assets further, again, by keeping your personal information to yourself.
The Nominee first of all issues the certifications that the bank account belongs solely to you.
This will be a requirement from the bank which must also take measures to verify your account.
Some banks would require a completely separate power of attorney document, apart from the one you already have during incorporation.
In this case, a new certification would cost approx. £200.
By the end of the transaction, the Nominee will have no knowledge of your account passwords or ID’s.
Nominee Shareholder(s)
When a business gets incorporated, any country standard would require for you to be represented with a number of shareholders.
Legislation would usually call for the shareholders personal information.
For business owners or individuals who don’t feel comfortable disclosing details about themselves, contracting a nominee shareholder to fulfill government requirements is generally an acceptable alternative.
Protecting Your Information
A contracted Nominee Shareholder will disclose the necessary information such as ID’s and passport numbers, without you having to share what you don’t want to.
This means that the Nominee Shareholder volunteers another set of information in place of your own.
This way, your information is secured while you (or the actual shareholder) maintain actual ownership of the shares.
Relationship
Contracting a Nominee Director usually comes in tandem with contracting a Nominee Shareholder.
In cases wherein the director and shareholder are one person, both nominees are required to protect his information, otherwise disclosing your information as a director while you use a Nominee Shareholder in your place would render the latter useless.
Some companies may also want to keep the individual’s information private and opt for these two alternatives.
Declaration of Trust
Contracting a Nominee Shareholder requires you to develop a system that protects your rights to your shares.
The most effective way to do this is for the Nominee Shareholder to issue a Declaration of Trust to you.
This certifies your full ownership of your shares while the nominee represents you.
It is therefore important for your Nominee Shareholder to be reliable and trustworthy, and your agreement to be free of loopholes that can be exploited by the nominee.
EBG ensures a completely secure contract between you and your Nominee Shareholder.
Our candidates are screened and must pass rigorous requirements in order to be deemed suitable to do business with our clients.
Nationality of Nominee Shareholder
We make sure to assign a Nominee Shareholder offshore from where our client resides to better protect you.
When both parties are located in the same country under the same laws, the security provided by the Nominee Shareholder to you is compromised as all systems apply to both of you.
To avoid this risk, we make sure you live in different countries.
Note : Contracting a Nominee is widely accepted and perfectly legal in all jurisdictions. When the company is due for renewal, the Nominee’s contract must likewise be renewed; otherwise, the service is terminated.
Of course, you may opt to terminate the Nominee at any time you wish.
Legal Issues
Obviously, any and all compliance with the current and to that extent any future legislation is a statutory requirement for any Nominee Director or Shareholder, and where required by law, disclosure of the identity of any beneficial owner or related person MUST and will be made, PRIOR notification (where permitted) will be made to the beneficial owner(s) of any such request for disclosure.