Shareholder Vs. Beneficial Owner in a Company in Seychelles

The offshore company is the most common business form registered in Seychelles. The confidentiality granted to the owners and the tax advantages are just a few of the attributes which recommend Seychelles for setting up an IBC company. Even so, there are certain requirements which need to be respected when opening an offshore company in Seychelles and many businesspersons wonder about the difference between the shareholder and the beneficial owner of such a company. It is important to note that Seychelles allows the existence of beneficial owners compared to other jurisdictions.

Below, our company formation specialists in Seychelles explain the most important differences between the shareholder and the beneficial owner of an offshore company in order to help investors make the best decision. At the same time, we can help in opening an offshore or another type of company in Seychelles.

Shareholders in companies in Seychelles

Even if Seychelles is an offshore destination, the term “shareholder” will mean the same thing when opening a company here. The distinction between the shareholder and the beneficial owner only appears when setting up an offshore company in Seychelles.

In general terms, the shareholder designates the holder of shares or stock in a company. In Seychelles, the shareholder can be the actual owner of the shares or can be the nominee shareholder, meaning a person or company, designated to hold the shares on behalf of a third party. That third party is usually the beneficial owner of the offshore company.

Our company registration agents in Seychelles offer nominee shareholder services if you are interested in a higher degree of confidentiality.

The beneficial owner of a Seychelles company

If the shareholder is the person or company holding the shares on behalf of another interested party, the beneficial owner will automatically become the actual owner of the shares, however, it is important to note that this usually applies to offshore companies in Seychelles.

The main advantages of being a beneficial owner instead of a direct shareholder in a Seychelles company are:

• -          the protection of the identity of the real owner of the shares in the offshore company;
• -          the beneficial owner will benefit from the profit generated the shares held in the offshore company;
• -          the beneficial owner is the only body to decide on what happens to the shares in the company;
• -          the personal information of the beneficial shareholder will be withheld to the public.

Our Seychelles company formation consultants can offer more information on the advantages of choosing to be a beneficial owner instead of a shareholder in an offshore company in this country.

How is the shareholder of an offshore company appointed?

When discussing the relationship between the shareholder and beneficial owner, it should be noted that it is based on a document called a declaration of trust. In other words, the beneficial owner and the shareholder, who will, in fact, be the nominee shareholder will sign an agreement which will cover the following aspects:

• -          the nominee shareholder will hold the shares of the offshore company on behalf of the beneficial owner;
• -          the shareholder will forsake any right over the shares in the Seychelles offshore company;
• -          the duty of the nominee shareholder will be that of representing the beneficial owner;
• -          the shareholder will also sign other documents through which the rights of the beneficial owner are not endangered.

You can rely on our local representatives if you need help in setting up an offshore company in Seychelles.

The nominee shareholder and the beneficial owner in Seychelles

Most of the times the registration of an offshore company in Seychelles is completed with the help of a nominee shareholder and director when the protection of the beneficial owner is desired.

The nominee shareholder services are usually provided by registered agents in Seychelles and thus ensuring a high level of professionality. In order to make sure the beneficial owner is protected, the nominee shareholder will sign the following documents:

• -          the declaration of trust;
• -          the nominee services contract;
• -          the share certificate;
• -          the transfer of shares agreement.

With a deep knowledge of the Seychelles legislation in respect to the establishment of offshore companies and the appointment of shareholders, our local advisors can offer several types of nominee services in complete confidentiality to foreign investors interested in becoming beneficial owners of such companies.

Please feel free to contact us for detailed information on our services and assistance in setting up an offshore company in Seychelles.