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Cyprus Ltd - director is corporate body nominee

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D0naldDuck

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Dec 28, 2020
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#1
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Hi guys,

Lets say you have a CY Ltd. Secretary, Shareholder and also director are all nominees. Youre just the UBO.

Will it cause any problems with EMIs, banks, Paypal etc if the director nominee is another corporation instead of a natural person? I'm specifically asking because when registering for i.e. Airwallex, you need to go through KYC with all these passport selfie taking bulls**t for the director. How should a director-nominee-company do stuff like that?
 
#2
Yes, it complicates the process quite a bit. Not only do you need a passport and utility bill from each nominee, but you’ll also need the same for the directors employed by the company acting as a director for your Cyprus entity.

If you have all the documents ready, it’s not an issue. Otherwise, it can turn into a real mess.
 
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#3
JohnLocke said:
Yes, it complicates the process quite a bit. Not only do you need a passport and utility bill from each nominee, but you’ll also need the same for the directors employed by the company acting as a director for your Cyprus entity.

If you have all the documents ready, it’s not an issue. Otherwise, it can turn into a real mess.
Click to expand...
Nice, thank you! :-)

So that means if the nominee (director, shareholder etc) is a company and not a natural person, the passport of the director of the company that acts as the nominee is needed?
 
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#4
D0naldDuck said:
Nice, thank you! :-)

So that means if the nominee (director, shareholder etc) is a company and not a natural person, the passport of the director of the company that acts as the nominee is needed?
Click to expand...
Yes, correct.

Unless there has been a specific other individual named as a representative for the company in its directorial position. Usually, there has to be one appointed, but it may be that the director of that corporate body was automatically appointed.
 
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#5
ilke said:
Yes, correct.

Unless there has been a specific other individual named as a representative for the company in its directorial position. Usually, there has to be one appointed, but it may be that the director of that corporate body was automatically appointed.
Click to expand...
Thanks!

Do you guys have any recomondation which EMI would be best for such a CY Ltd with nominees? Which ones are the easiest to open with such a setup?
 
#6
JohnLocke said:
Yes, it complicates the process quite a bit. Not only do you need a passport and utility bill from each nominee, but you’ll also need the same for the directors employed by the company acting as a director for your Cyprus entity.

If you have all the documents ready, it’s not an issue. Otherwise, it can turn into a real mess.
Click to expand...
ilke said:
Yes, correct.

Unless there has been a specific other individual named as a representative for the company in its directorial position. Usually, there has to be one appointed, but it may be that the director of that corporate body was automatically appointed.
Click to expand...
@JohnLocke and @ilke described it right. I can just add that to the best of my knowledge, such a setup (the nominee director being a company) is very common at Cyprus* and any financial institution accustomed to Cypriot clients should be accustomed to this.
* @CyprusLawyer101 or @CyprusLaw can eventually correct me if times have changed...

D0naldDuck said:
Do you guys have any recomondation which EMI would be best for such a CY Ltd with nominees? Which ones are the easiest to open with such a setup?
Click to expand...
As mentioned above, this setup should not be a problem by itself.
What it much more important is
– your (as an UBO, I presume) citizenship and residence;
– the company's business;
– what currencies do you need;
– what payment methods do you need (SEPA, SWIFT, ACH, ...);
– what are expected destinations for outgoing/incoming payments;
– what is the expected company monthly/yearly turnover.
If (and only if :)) you share this information, you can expect somehow founded advice...
 
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#7
Having a corporate nominee as a director can make KYC more complicated. Even though the director is a company, you'll still need to provide KYC documents for the individuals behind that nominee director (like their ID or proof of address). Services like Airwallex or PayPal want to know who really controls the business, so you'll also need to go through KYC as the UBO. It might delay things or require extra documentation, but it's all about proving ownership and control.
 
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