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why i need a nominee shareholder?

Reasons include :
  • Hiding identity of beneficiary owner and director
    • For non-Hong Kong offshore companies, such as BVI, shareholder and director registration record is NOT open for public search.
    • For Hong Kong companies, such record is open for public search.
    • Nominee arrangement can help to keep those information confidential.
    • However, when client needs to open bank account and other transaction for the company, may still need to disclose the information deliberately.
  • Simplifying the company structure
    • The actual structure of a company may involve many shareholders and directors. This will increase the administrative work when some transaction need to be entered into.
    • For example, many banks need to know the detail of each beneficiary shareholder (such as bank reference letter from each owner). To avoid such situation, the shareholding and directorship can be registered using 1 shareholder and 1 director, wherereas this representative act as nominee for real owners and directors to management the company.
  • Business facilitation
    • Keeping real owner's ID confidential often gives convenience in business operation;
    • For example, a business owner often declares himself a senior marketing staff that needs to report to a director (another person) - who is the one making final decision.
  • Saving time and cost
    • When the beneficiary shareholder or director is out of the territory, nominee shareholder and director can sign contract or legal document for the company.
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