Nominee directors / shareholders and privacy

[georgio]

Hello,

When someone creates a company with a nominee director and/or nominee shareholders (e.g. in Cyprus), does he keep his information private?
E.g. if he takes dividends from this company, is there a way for other countries to learn the true beneficial of the dividends?
Also in case of an audit by another (EU) country towards this company, how's the owner protected through the nominee scheme?

Also what would be the disadvantages of having a nominee director/shareholder?

Cheers

 

[lavel]

It requires a court order to get that information about UBO otherwise you can forget about it, unless the agent you are using sucks and reveal the information just like that.

 

[georgio]

It requires a court order to get that information about UBO otherwise you can forget about it, unless the agent you are using sucks and reveal the information just like that.

In Cyprus is it possible to search for a shareholder? So the question is do you need also a nominee shareholder or with a nominee director you're fine?

 

[lavel]

You will need both if you want to hide your identity otherwise there is a public register where everyone can lookup the information.

 

[georgio]

You will need both if you want to hide your identity otherwise there is a public register where everyone can lookup the information.

Cool thanks, what is your opinion on that? For me it sounds quite scary not to be a shareholder on the company, sounds like the person can take all the money and go, no? I have a friend who has done it, he was withdrawing all the money in cash at the end of the month..

 

[Remy]

The problem is your bank will report you to your country, and I guess in Cyprus as in others EU countries, you have to disclose you in the UBO register Hidden owners of companies to be revealed

I think you make a mix with Nominee shareholder (legal) and Nominee UBO (not really legal), the first one cannot go with your money, because the bank know only you as UBO. The second one open the bank account for you and give you control on it after that.

The only solution to really hide you is to have a Nominee UBO, but you are right, even you make a good contract with him, the main point is trust between you and him. You takes risk, but him also.

 

[georgio]

I think you make a mix with Nominee shareholder (legal) and Nominee UBO (not really legal), the first one cannot go with your money, because the bank know only you as UBO. The second one open the bank account for you and give you control on it after that.

The only solution to really hide you is to have a Nominee UBO, but you are right, even you make a good contract with him, the main point is trust between you and him. You takes risk, but him also.

If someone is a nominee UBO for multiple companies, technically he would be showing millions as revenue from different companies..
Doesn't this raise an issue somewhere? Also the bank opens at the name of the company I guess, where is the UBO declared?

The problem is your bank will report you to your country, and I guess in Cyprus as in others EU countries, you have to disclose you in the UBO register Hidden owners of companies to be revealed

This is something the bank will do, for the bank account that is on the name of the company?

 

[Remy]

If someone is a nominee UBO for multiple companies, technically he would be showing millions as revenue from different companies..
Doesn't this raise an issue somewhere? Also the bank opens at the name of the company I guess, where is the UBO declared?


This is something the bank will do, for the bank account that is on the name of the company?

1/ You have to choose someone in this case who doesn't provide this service for tens of companies to avoid the issue.

2/ You have to disclose you as UBO in the register, but your bank has to report also :

http://www.multilysis.com/en/articl...f-the-common-reporting-standard-crs-in-cyprus
Reportables accounts include accounts held by individuals and entities. Banks reports you as UBO (identity, balance, movements..) to the Tax Authority, this one reports to your country.

There would be nothing to report if it would be just on the name of company, because your company is registered in Cyprus

 

[georgio]

There would be nothing to report if it would be just on the name of company, because your company is registered in Cyprus

Yes only a company's account in Cyprus, no need for personal accounts, then can withdraw cash

 

[Spinat]

Yes only a company's account in Cyprus, no need for personal accounts, then can withdraw cash

But what about the CRS they will report you if it is a personal account??

 

[Remy]

Yes only a company's account in Cyprus, no need for personal accounts, then can withdraw cash

I mean, the bank will report you to the Tax Authority of Cyprus because you are UBO of your corporate account.

 

[Remy]

But what about the CRS they will report you if it is a personal account??

The same, even easier to know the UBO of a personal account, this is the holder.

 

[lavel]

I mean, the bank will report you to the Tax Authority of Cyprus because you are UBO of your corporate account.

you mean to the tax auth. in UBO country of resident right?

 

[Remy]

you mean to the tax auth. in UBO country of resident right?

In Cyprus first, and Cyprus will report to the country where you are resident. Of course, if you are resident in Cyprus, it changes the game.

Hey, guys, I open doors already open, just check what is CRS ! And overall, what the direction takes its development in the following years from now.

Especially, the implementation of a centralised EU register for UBO.

 

[Remy]

The guy of OECD for taxes purpose is French, I saw him on TV shows speaking of the CRS. He's very motivated to push the exchange of information in order to let nowhere to hide :

https://www.oecd.org/ctp/pascal-saint-amans.htm
We will see if he succeed completly, but for now he's good in his job.