Nominee Shareholder Service

What is a Nominee Shareholder and why have one?

The provision of nominee shareholder services in connection with the formation of a UK or offshore company is invariably required by clients seeking legitimate confidentiality of ownership.

A nominee is normally a company created for the purpose of holding shares and other securities on behalf of investors. With our service, the nominee is not the legal owner of the shares, and the underlying investors have a beneficial interest in the shares: i.e. they are entitled to all income and capital gains on them.

Upon taking on the duties of Nominee Shareholder, we would hold your shares on trust in the form of a Nominee Shareholders Agreement. Our Nominee Shareholders Agreement would serve the purpose of ensuring that your identity as a beneficial owner is only known to us and not put on public record at the Company’s Registry.

An original Share Transfer form signed by us, but undated, will be issued to you, so that you can have the security of being able to transfer the shares at any time.

A nominee holding occurs where a third party holds shares on your behalf. This can be purely an administrative matter to aid the management of shareholdings.

For an annual fee, Formacompany & Co can provide a corporate nominee in whose name the shares of any given company will be registered.

Formacompany & Co will then draw up a Declaration of Trust in favour of the beneficial owner, which provides that Formacompany Nominees Ltd will vote the shares in accordance with the nominee’s instructions; and will assign all profits payable on the shares (e.g. dividend income) to the beneficial owner. Formacompany Nominees Ltd will act as a nominee shareholder for your company. The provision of nominee shareholder services in connection with the formation of UK companies is invariably required by clients seeking legitimate confidentiality of ownership.

Formacompany Nominees Ltd are professionals who hold the shares registered in our name for the benefit of another.

Nominee Shareholder

• The shares in the company are formally registered in the name of an unrelated third party – a nominee, provided by us. It would usually be another corporate body (a company), wholly owned by ourselves, incorporated solely for this purpose.s remain strictly confidential
• A nominee shareholder shields and protects the client during any possible public inquiry from showing up as the owner of the company. Thus, the client is formally distanced from his offshore company at the ownership level. At the same time, the client can prove himself as the owner of the company whenever he chooses, by way of producing the supporting confidential documentation.