Offshore Incorporations   Offshore Banking - Investments   Mutual Funds   International Business    Residency Services
banking incorporation services
This site offers news articles and information pertaining to expatriation, offshore banking, offshore investments, residency in other jurisdictions, second citizenship and second passport matters.  Jurisdictions covered in our main section and our on-line newsletter sections include: Argentina, Bahamas, Belize, China, Dominican Republic, Ecuador, Nevis, Panama, United States and Uruguay.   Ascot Advisory assists with incorportion services, banking introduction services, free zone  license  assistance, residency and naturalization (second citizenship) in the Dominican Republic, Panama, Nevis and some of the other jurisdcitions mentioned above.
Telephone 
. 809-334-5387 or 809-756-1917
Email 
info@ascot-advisory.com
Sign up via the form below for our newsletter bulletins, which include current news and information of interest to our clients (and readers).   Note: We do not rent or sell our newsletter subscription list to anyone.
'news bulletin sign up' All of Newsletters from 2003 until current issues are available on-line.   If you missed an issue or simply want to read previous issues - including the very popular Readers Write In section .......Click Here
Complete Our On-Line Reply Form
CLICK HERE
Send Email Directly
CLICK HERE
Special Reports
.

 Read Some of Our Other News Articles for 2005:
.
Gone With The Wind Taught Us About Offshore Banking
Really! No Kidding! Rhet Butler was offshore and because of it he survived the war (and was able to buy Scarlet a new house).
.
Social Security:  A Nice Idea While It Lasted
You give the government all your money (well, a good part of it) and they give you a pension in old age.  Now they claim the system is broke - What can you do?
.
The Sovereign Individual Versus The Welfare State
We have all heard the term New World Order, but what does it mean really?  It is some crazy conspiracy theory or is it perhaps a programmed response to other social and economic issues?  Are there conflicts developing between citizens and the state?
.
Why You Need One Now, and Fast. . . . What is Dual Citizenship and it is legal?  What is the difference between residency and citizenship?  Why would someone want another passport or citizenship?  Will you loose your current citizenship if you obtain another?  We put together some information for you in order to answer these and many other related questions.


How to Use Nominees for an Offshore Company:
.
What does it mean to use a nominee director? Why consider using nominees? What are the advantages and disadvantages?
John Schroder - Author of The Ascot Advisory News Letter Bulletin and Numerous Expatriate  Articles
.
.

.
Send Us an
Email
.
.
Forming an Offshore Bahamas IBC

.
.
Forming a 
Dominican 
.
.
Forming a Panama
Offshore Company
.
.
Forming a Panama
Foundation 
.
.
How to use 
Nominee Directors 
.
.
About Offshore 
Mutual Funds
.
.
The Santo 
Domingo
Stock-Exchange
& Commercial
Paper Time Deposits
.
.
About Dominican
Residency & 
Second Citizenship
.
.
ORDER  THE
DOMINCIAN 
REPUBLIC
REPORT
.

.
Click Here
 





 Many clients have come to me after speaking to some Offshore firms or law firms regarding the idea of using nominee directors for the masking of true ownership or as a protection mechanism. To clarify the matter and to explore some strategies with this idea, let’s first define what a nominee director actually is.
.
A nominee director is someone who in fact is renting his or her name to you.  In other words, the name of this person is used and not yours for the incorporation documents.  They are also taking the positions on paper of the company directors.  The term of straw man or front man has been used to describe someone who is acting as the nominee.  The problem with any nominee comes down to trust.  I know of many people who would not even consider the idea of placing control of their assets into the hands of a brother, sister or other family member.  Why would you consider doing so with someone you never met before?  I am sure there are quite a number of honest and ethical lawyers or accountants who can be successfully used as a nominee director.  The problem is how do you know who is honest and ethical?  Also, if the person is honest and ethical now, how do you know that some personal problem down the road will not tempt them to abuse the powers you have given to them?  No one starts out wanting to have marital, gambling or other types of problems, but the frailties of human nature can get the best of everyone sometimes.  To see someone have a problem is unfortunate, but someone else’s need for cash should not become your problem by default. Protect yourself first.  Never give control of your money to someone else.  Here is how.
.   
Protecting Your Wallet and Your Privacy
.
People use Nominee Directors because they want to maintain their privacy and keep their name out of the public record.  A legitimate and fair enough goal.  In reality though, if your Foundation or Company is domiciled in a jurisdiction governed by Civil law and privacy statues, it can be your benefit to set things up in such a way that the no nominees are used or are only used for some things.
.
Strategy # 1 - Using a mixture of nominee directors and yourself.
.
Since most jurisdictions require that three people be named as directors, you can certainly use two nominees for the positions of vice-president and secretary.  This may be out of practicality, especially if the client is acting alone in setting up an offshore structure.  My suggestion then is for the client to take the position of president.  The articles of incorporation should clearly state that the president is the only director who is authorized to; open and control bank accounts, enter into contracts on behalf of the company, purchase property or goods, and any other activities relating to the company.  While this method does address any tax or reporting issues, it certainly solves the problem of having someone else control the corporation’s assets.
.
Strategy # 2 – Using a Foundation or Trust Structure
.
Because of recent legislation aimed at addressing the large number of people that have taken their assets and themselves offshore, some firms have developed some exotic plans with regards to cross ownership of companies and a number of other strategies as well.  I do not want to try and explain them all, but just keep in mind that a juridical person can certainly form or act as the board of directors for a company.  With that in mind, there are some general strategies that allow one entity to own the stock of another or allow one entity to control the board of another.  Some of these strategies can become quite confusing, and expensive.
.
As mentioned in other articles, the Foundation or Trust structure is basically an estate planning and asset protection vehicle.  It is not an entity that is meant or permitted to engage in business activities.  That role is left to the Corporation structure.  It can however certainly own 100% of the stock of an offshore corporation, thus alleviating the problem of the client having to claim ownership of a foreign corporation.  In addition, the trust or foundation structure can certainly act in the capacity as a board member of the company as well.
.
When setting up an Offshore Structure, the key to any initiative is using some common sense. You should never turn control of your money over to anyone.  However, that does not mean that you cannot use nominee directors for certain things or that you need to so something that will create a conflict with current tax legislation in your home country.  The right mix of planning and safeguards can make sure you are well protected and in control.   

 

 


Offshore Banking & Bank Accounts - Offshore Mutual Funds & Investing -Dominican Republic Residency - Panama Residency Offshore Incorporation Services & Tax haven Information