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Nominee services are typically provided by an intermediary to disguise the beneficial owner's business. Nominee services refer to the nominee shareholder and the nominee director. As a rule, the nominee services should also include a post office box service (office address for correspondence purposes). Nominee services are suitable for large corporate tax planning structures and often include an international aspect. For example, the ultimate beneficiary is based in another country and not the company itself.
Nominee shareholder services are typically provided on the basis of a declaration of trust, whereby the nominee declares that he holds shares on behalf of another person and is not entitled to make decisions in the company, neither to vote at a shareholder meeting nor to receive dividends, it unless the customer expressly gives instructions. The nominee has no right to sell shares unless requested by the customer. However, the customer and the nominee can agree on specific tasks that the nominee should perform. Such tasks are often assigned to lawyers and lawyers who have expertise in the field and can protect the client's interests.
Nominee director, also called a "shadow director", who usually only appears for official records while the company is effectively run by the client by power of attorney. Based on approval, the customer can open a bank account and assume full business management and control.
**Benefits of Nominee Services **The advantages of using nominee services are evident in cases where an entrepreneur wants to maintain his privacy and reduce visibility in official records or does not want his name to be associated with the company in question. In addition, a person may have restrictions on carrying out the proposed activity or the law may require a local manager, for example a local secretary in Hong Kong.
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