If you anticipate operating a company in Hong Kong but do not want to reveal personal information because of business consideration the best way to go about it is picking a company nominee. This is a person or entity whose names, addresses, and shareholding appear on the government records, but they represent the real owners.
The main focus is ensuring that the company operates normally without putting the real shareholders at any risk. This is a guide on Hong Kong nominee and demonstration why offshore bank account consultants are very important.
The main characteristic of a company nominee
- The nominee is hired based on a contract that is aimed at protecting the rights of the company properties as well as income distribution. This indicates that the nominee roles are restricted to the beneficial owner’s right.
- The real owner of the company shares reserves the right to dismiss nominee director from the office. Once a nominee shareholder and director are picked, they have to represent the actual position of the real shareholder. If the shareholder feels he is not being represented well, he is allowed to dismiss the nominee.
- The company nominee is not allowed to enter into commercial contracts without the real shareholder’s consent. The main shareholders must, therefore, be close to approve and allow the nominee to proceed with any contract or commercial deal.
The company nominee director
The Hong Kong Companies ordinance requires companies to have at least one director. Therefore, contracting a nominee director will help to keep identify of the true director completely confidential in the business structure. The true identity of the real director is only known to the agent who will incorporate the company.
Though the nominee director is always on the front line of the company operations, you will remain in full control. All the business activities, corporate bank accounts, and managerial activities will be entitled to you. The nominee will, therefore, not act as an obstacle in any way.
The nominee director is only a representative. Therefore, he is not liable for the actions he takes. You are deemed to be in full control of the company and only exercise powers via a nominee. This means you have to walk together to ensure that the nominee is moving the company in the direction you anticipate.
The nominee shareholder
The nominee shareholder goes hand in hand with hiring a nominee director. The nominee shareholder is used to conceal the identity of the real shareholder. Because shareholding of companies is very sensitive, a nominee shareholder is required to sign a declaration of trust that certifies the real shareholder has full ownership while the nominee is representing you. It is very important to craft this declaration carefully with the help of offshore bank account consultants to ensure you operate within the law and remain protected by the nominee.
Benefits of using the company nominees
Company nominees allow investors to bring onboard experts and use their services while staying behind the scenes. When implemented carefully, it can result in the fast growth of a business. Other benefits include;
- Ability to demonstrate tax substance to Hong Kong administration by picking resident company nominees.
- It is a great way to learn about the Hong Kong environment and pick the best entry strategy.
- While different faces represent the company, the real directors and shareholders remain in full control.
- The company nominee is required to always work with the real director or shareholders. This means you will always be in full control of the company.
The secret to the success of using company nominees is picking the best. You should work with offshore bank account consultants to understand more about company nominee and how to get the best from them.