Business risks arising when purchasing a ready-made company with a nominal owner
Establishing a company abroad always costs the entrepreneur a lot. State duties, registration fees, office rent, refusal of banks to cooperate... In such a situation, buying a valid "zero" business seems to be the best solution. However, a ready-made company with a nominal owner has both advantages and serious disadvantages.
Advantages of using nominal service
Most European countries try to rule out the use of services, but there are not many jurisdictions where this is still legally permitted. First of all, nominee directors and shareholders are used to ensure the confidentiality of beneficiaries and founders. It is no secret that many large foreign companies are owned by public persons. They are forbidden to conduct any business activity, but if they really want to, they can stay "in the shadows".
Another reason for using these services is an attempt to simplify the process of acquiring business abroad, especially if there is a requirement for at least one local top manager or shareholder in the company. It also happens that the real owner has insufficient education or qualifications, "tainted" reputation or a desire to hide part of the income from the heirs. Nominal service will help to solve these problems as well.
In fact, it is fixed in the founding documents of the company as owners, people who are hired and follow the instructions of the real owner. It would seem - everything is absolutely safe, you just need to choose the right candidates. But in fact, the real and nominal owners may have a conflict, which will seriously harm the business.
Risks of using nominal service
In case the firm has problems - with counterparties, tax service or law enforcement agencies, the responsibility for their solution falls on the founder. Those who agree to perform such a role for the organization most often are aware of the difficulties that may arise at any time, so they ask for their services a considerable fee.
The calculating specialists are especially engaged in several projects simultaneously. This is soon reveale to regulatory authorities, who perceive participation in several companies as a fraud. The firm, in this case, may have problems in dealing with government agencies or banks. There are other risks as well:
- Conclusion of contracts without the consent of the real owner.
- Collection of compromising materials.
- Recognition of signed contracts as null and void.
- Disposal of the company's funds on the corporate bank account
It is only possible to buy a ready-made company with a nominal owner without any fear of his identity. It is best to contact IT-OFFSHORE, our specialists will be able to find a legitimate high-quality company with "zero" turnovers and a professional nominee owner. We select the conditions interaction that minimize the risks of the real owner might face and guarantee our clients complete security.