When a fiduciary organization or a bank gets a custodian to manage a company’s assets and securities on behalf of the real owner, it is called a nominee company. The terms and condition are followed by a custodial agreement. The bank or organization manages the paperwork which includes documents regarding shareholding as well as required transfers.

A nominee company works with the help of hired nominees who play the roles of acting director, shareholders, secretaries, etc. This option is highly suitable for people who want to open up offshore companies but do not want their names to appear in the local registries. A nominee company is a legal way to go around this. The investments, as well as reaped results, are all credited to the real owner. The nominees only help maintain privacy. These hired nominees also make things easier in terms of local paperwork and other errands that a business requires.

Local bank accounts

As a business, there is a need for bank accounts to make apt payments. Sending and receiving money is a major part of any business. Starting up a whole new company will obviously require accounts in the local banks. As an international owner, the process would neither be feasible nor convenient. Flying to another country every now and then to sign documents or appear in meetings will be a definite hassle. With a hired nominee director and shareholder, the owner wouldn’t have to worry about a thing. These hired people can be locals who live in the country. Therefore, they will have easy access to banks, will be well aware of the local laws, and wouldn’t have to worry about flying to another country to make it to meetings on time.

To make sure that the real owner controls the funds in the accounts, a couple of legal documents are required. These include Power of attorney and Declaration of trust. Since the nominee will be the acting director and the real owner’s name and details will be private, these documents must be provided to the bank. This will serve as proof that the business is a nominee company. This way, the nominee director, and shareholder will be giving signed evidence that they’re not in control of the business assets. The real owner will get control over the bank account this way. All financial matters and assets will remain in the ownership of the real owner. The bank will only contact the real owner to confirm transactions and tackle other money matters.

With the help of nominees, you can easily own a company in any country. A nominee company lets you start a business without having to get your name in the official records of the country. You can take control of the entire business with full privacy. The real owner remains anonymous while having all the money in hand. It is a process that allows people to do businesses in a legal way, with legitimate documents, and minimal hassle.

Close Menu