Beneficiary is a concept that is often used in various fields of offshore business. What does it mean?
Beneficiary - a person who receives profit, profit, business income. So called final payees. Depending on the situation, the value may be different.
Company ownership
Most often, at the opening of enterprises, shareholders, directors, etc. are registered, but the names of the real owners remain unspoken. In this case, the beneficiary is the person who actually owns and receives the benefit and profit from the activities of the enterprise. This role can be played by an individual who, through participation in other companies or directly controls the shares of the enterprise. In this case, legally, ownership can be assigned to other people or companies. Information about the beneficiaries is confidential, provided solely to the bank or registration agent.
Through the use of nominee directors and shareholders in offshore companies, it is often hidden who is the ultimate beneficiary. This scheme is most often concluded using a nominal agreement or a trust declaration. The deed of trust is rarely applied.
Thus, a chain of owners, including beneficiaries, is extremely rarely made public.
Bank account ownership
In this case, the beneficiary is the owner of the
bank account, which has control over the assets or funds in this account. This person can indirectly or directly manage finances. Moreover, the concept applies exclusively to persons who have full control over the specified funds, even if the beneficiary does not directly perform any operations, but they follow his instructions. When opening an account, credit institutions always ask for information about the ultimate beneficiaries.
Trust management
In this case, the beneficiary is a person who receives income from property transferred to trust or given to third parties for use.
Insurance
In this case, the term is applied to the person who will receive the sum insured. If a person is insured against death, the primary (or conditional) beneficiary may be any other person.
Inheritance
The beneficiary is the heir in accordance with the will.
Lease or rental of property
The term applies to an individual who receives rent or rent.
Letter of credit
If money is drawn up under a letter of credit, the beneficiary of a documentary letter of credit is the person in whose name the issuing bank opens it.
Beneficiary Opportunities and Rights
If the beneficiary owns the shares of the enterprise, he has the right to transfer his ownership rights to another person. The ultimate owner takes part in resolving issues related to the authorized capital. The beneficiary also has an indirect voting right at shareholders meetings. The owner can take part in choosing the board of the company.