MN & Associates team of financial and legal partners facilitate their clients in preparing the required documents, providing professional nominees and assisting in the procedure required in an efficient and professional manner concerning nominee services.
Nominee services may be employed by the beneficial or real owners in order to maintain the confidentiality of their stock or company ownership and other personal information. Companies may make use of the different nominee services such as, the nominee director services, nominee shareholder services or nominee secretarial services. MN&ASSOCIATES offers its clientele with competent nominees to suit their business requirements. Using nominee services is legal and valid in Cyprus. It assures the real owners that their corporate and financial information are kept private.
In certain jurisdictions, such as in Cyprus, it is legally required that the names and addresses of company directors and shareholders are made available to the public for enquiry. However, for some businessmen especially foreign investors, their privacy is of utmost importance. Thus, through the use of nominee services, this dilemma may be eluded.
A beneficial owner is the real owner of the stocks held by the nominee or of the shares registered under the name of the nominee. The equity or ownership belongs to the beneficial owner although the legal title is under the name of the nominee shareholder. In order to benefit from nominee services, certain requirements have to be submitted for the security of the beneficial owners. In appointing nominees, investors should appoint nominees who are trustworthy, reliable and knowledgeable in this type of business. In the case of Nominee Directors, a General or Special Power of Attorney will be drafted during the incorporation process. The legal document will authorize the beneficial owner to run and manage the company in the ordinary course of business.
The legal document will also serve as an assurance to the beneficial owner that the legal title or ownership will be returned to him after the nominee director has fulfilled his duties. The nature of the nominee director’s role is passive and the management and control of the company remains beneficial owner’s responsibility.
Concerning shareholders of the company who wish to maintain their anonymity, the services of a nominee shareholder may also be resorted. The agreement between the nominee shareholder and the beneficial owner of the shares will be incorporated in a Declaration of Trust. This legal document will state that the nominee shareholder will only undertake actions based on the authority given by the beneficial owner or based exclusively on the owner’s instructions. A Share Transfer Document will also be prepared in favour of the beneficial owner. This document should be open dated so that at any time the beneficial owner of the shares desires to transfer the name of the shares to his name or to any other person; he can do so at will. A nominee secretary on the other hand, is needed in order to comply with the requirement of the Cypriot law to have a company secretary and also to facilitate banking transactions.
A company may opt not to resort to nominee services. However, in order to avail the benefits offered by the Cyprus system of taxation and of the double taxation treatises, a company should be considered a resident or a domestic corporation in Cyprus for taxation purposes. A majority of the board of directors should be residents of Cyprus in order for the corporation to be considered a domestic or resident corporation, which can be made possible by appointing nominee directors who are Cypriot residents.
KGS Accounting & Finance Ltd. team of financial and legal partners undertake to facilitate their clients in preparing the required documents, providing professional nominees and assisting in the procedure in an efficient and professional manner.