Question Cyprus Paypal with nominee director & real UBO

[avalanche]

Is it allowed by Paypal rules to open Paypal account as a UBO of a Cypriot entity with the nominee director?

It would be best if director did not have transfer access to the funds on Paypal, only read-only access.

Is owner of the company going to need director's passport for this?

 

[Sols]

Is it allowed by Paypal rules to open Paypal account as a UBO of a Cypriot entity with the nominee director?

I'm not aware of any specific rules against it, but you may run into problems if PayPal has seen the director before, especially if the other accounts have had any kind of problems with PayPal. It shouldn't be a problem if you work with a reputable service provider that carefully monitors their clients' activities.

It would be best if director did not have transfer access to the funds on Paypal, only read-only access.

Many nominees will not agree to that. And if you find one that does, chances are you're dealing with the type of nominee director that might've been burned already with PayPal.

Is owner of the company going to need director's passport for this?

Yes. PayPal will, sooner or later, ask for full KYC of the company.

 

[avalanche]

I'm not aware of any specific rules against it, but you may run into problems if PayPal has seen the director before, especially if the other accounts have had any kind of problems with PayPal. It shouldn't be a problem if you work with a reputable service provider that carefully monitors their clients' activities.


Many nominees will not agree to that. And if you find one that does, chances are you're dealing with the type of nominee director that might've been burned already with PayPal.


Yes. PayPal will, sooner or later, ask for full KYC of the company.

Thank you for the response Sols. Its a bit scary to use nominee for services like Paypal then. Might end up burning reputation of the company if director has been noticed before.

Although, what would be the chances to get burnt if the director is licensed by CySec?

 

[Sols]

It's probably fine if they are CySEC licensed.

You can ask them about it before you sign the agreements. Clarify that you will need a PayPal account and that you require that the directors have either not been seen at all by PayPal or, if they have, have a good standing with PayPal. This wouldn't be a 100% guarantee but it's about as good as you can get.

 

[avalanche]

It's probably fine if they are CySEC licensed.

You can ask them about it before you sign the agreements. Clarify that you will need a PayPal account and that you require that the directors have either not been seen at all by PayPal or, if they have, have a good standing with PayPal. This wouldn't be a 100% guarantee but it's about as good as you can get.

Thanks!