What Is a Nominee Service and Why to Use it in Offshore Activity?
April 11, 2016
Are you considering the opportunity to set up a new business? Possibly, you think of moving your current business to an offshore jurisdiction? Anyway, privacy is one of the major aspects you are sure to be concerned about in both cases. It does not matter where you are doing business, confidentiality is a concern for any entrepreneur. In case you’ve made up your mind to register an offshore formation, a certain level of confidentiality will be guaranteed to you. However, your name will be needed for the registration procedures in the jurisdiction you’ve chosen and should be mentioned in the founding documents. Still you can go the other way.
Do You Want More Security and Confidentiality?
Business owners often want their identity protection to be at a superior level. The reasons for that may be different, yet business operations require privacy sometimes. Confidentiality can be achieved through a nominee service offered to the offshore companies. It’s important to have the understanding of what it is, how it works and how it can be useful for your business.
As an entrepreneur, you should know the following:
- Setting up an offshore company, you should choose from a variety of options to meet the specific goals you have in mind.
- Using a nominee service you avoid mentioning your name in the official papers.
- You will be represented by the law firm and the latter will be listed in the registration documents. It will be mentioned as the listed shareholder of the company as well as its director.
- As soon as your business is incorporated, the law company will issue a power of attorney to you. A declaration of trust document will be created.
- The two above mentioned documents will provide you with 100% control over your business. There is no further necessity to interact with the entity, which provided such a service to you. You gain full control of your activity.
- The only person controlling assets of your company is you yourself.
- The right to sign contracts on behalf of you company is yours only. However, in case you want to avoid mentioning your specific name on the contracts, you can turn for the nominee service again. Then the law firm will sign the necessary documentation for you.
The usage of the nominee service guarantees you the highest possible level of privacy protection. No government entity in your native country or new location you’ve chosen can find this data out. Your confidentiality is totally secure.
The nominee service is worth investing in as you get your personal identity protection along with assets separate from your business. It also makes sense when moving to a new offshore jurisdiction; On the whole, there are a lot of reasons to protect your identity, especially when you owe a business. As a business owner, you should understand as well that there are multiple reasons for moving to an offshore hub. So just do it!