How do we assist you in the Nominee Shareholder Service?
A lot goes into incorporating a company, more so when it is an offshore company i.e. outside the domestic territory of the owner.
Conventional knowledge says that the person who owns the company, the Chief Executive holds most of the shares and is the brand and face of the company, but such is not the method of operations all the time, and sometimes anonymity is sought.
So, here is the Nominee Shareholder Service which serves this purpose.
The following is the commonly asked questions about the company secretarial service on nominee shareholder so as to abreast you of its fundamentals and how you can avail it.
What is Nominee Shareholder service?
Nominee, going by the literal definition, is the person who is authorised by the owner to take charge.
Thus, Nominee shareholder is an individual or entity, generally unrelated to the company which is listed as the proprietor in the registry of the securities/shares of the enterprise.
And the actual owner enjoys complete anonymity and marionettes the affairs of the company.
Who can be the Nominee Shareholder?
It can either be another individual not necessarily a Singapore resident who allows 100% foreign shareholdings of a company or any other offshore company which provides these services.
Companies providing such service are preferred over individuals as these businesses are regulated, organised and adds to the safeguards of owners against the malpractice.
Why should we nominate others to run these affairs?
The main reason behind it is the anonymity which the owner gets on the ownership of shares of the company as sometimes there may not acknowledge the relationship in public.
Another reason is to conceal from competitors on the investment decisions or to facilitate the business in the foreign country.
How will the rights of the beneficial owner be safeguarded?
The major feature of this service is the confidentiality involved.
Although the entity in papers will be the appointed nominee, the real deal would rest with the actual anonymous owner.
A declaration of trust is signed which specifies the role of the nominee as a proxy with the power to terminate or transfer the shares to any other party when and how resting with the actual owner.
What are the other ways if we do not use Nominee Shareholder service?
Earlier the practice was to issue bearer shares for the proxy owner, for these bonds contain no identification, name & anyone who possess these was their owner.
It served the purpose but owing to the fraudulent practices proliferated by it and the following measures against money laundering taken by various jurisdictions; it is losing popularity and making Nominee shareholders the order of the day.
Should you need assistance or would like to find out more about Nominee Shareholder services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our business advisor will contact you.