17 Year old looking to create a company to hold shares in another company.

[pedigree]

I am a 17 year old looking to create a company in order to hold shares in another company which I am starting with my partners (who are in their 30s).

What would be the best and most cost effective way to do so? (considering my age).

All help will be appreciated.

 

[Silvio]

There is no "best", it depends on your goals- do you want to hide your ownership? minimize tax? does the company need a bank account?
Your citizenship\residency also play a role in your taxation. It's not just a matter of cost.

 

[CaptK]

It depends where you live. In the UK you can't legally own shares yourself until you are 18. Your parents will have to set up a trust or foundation until you hit 18 or they stand in for you as a trustee as themselves.

 

[dragodrago]

In the UK you can't legally own shares yourself until you are 18.

Not true. In fact, the age limit for shareholders and directors of a limited company in the UK is 16 years old. This is the best option for a 17-year-old. The cost is low (~£50 per year) and everything can be done online.

US LLCs is another option but would have more overhead costs.

 

[pedigree]

There is no "best", it depends on your goals- do you want to hide your ownership? minimize tax? does the company need a bank account?
Your citizenship\residency also play a role in your taxation. It's not just a matter of cost.

There won't be any tax as I am just holding shares of another company. The bank accounts and tax will be handled by the director (my partner) of the company that I am holding shares for.

 

[pedigree]

Not true. In fact, the age limit for shareholders and directors of a limited company in the UK is 16 years old. This is the best option for a 17-year-old. The cost is low (~£50 per year) and everything can be done online.

US LLCs is another option but would have more overhead costs.

Perfect. Do you know if 17 year olds can use nominee services?

 

[Sols]

Perfect. Do you know if 17 year olds can use nominee services?

Appointing nominees implies signing an agreement with the nominees, and as a minor you are not able to enter into that type of agreement. You might be able to make an arrangement with a legal guardian until you turn 18.

However, depending on where you live, there might not be any laws that prevent you from being a shareholder despite being a minor. Being a director is usually trickier (not possible) but if all you need to do is act as a shareholder, check if local law permits it. Don't overcomplicate things with offshore/foreign companies unless there's some benefit.

If you cannot own shares locally, explore what options you have by having a proxy/trustee until you turn 18.

 

[dragodrago]

Perfect. Do you know if 17 year olds can use nominee services?

No competent nominee will sign a contract with a minor, as this could lead to them bearing the legal responsibilities rather than you, if anything bad happens.

Is there any particular reason why you want a nominee? Even if you use a nominee, your name will still be publicly listed as a Person with Significant Control (PSC).