What is the worst thing a bad offshore agent and a ND could do to you?

[pastet89]

Hello,

I have proposals to incorporate in BVI or Gibraltar from different agents and the prices could literally vary in the 3X range.

Everyone would prefer to work with a nice agent, but I am wondering also in general, what is the worst thing that could happen, if for example the agent simply disappears together with its website?
In this case, what happens to the company (which is officially mine as per documents), if, let's say I have only the digital copies of the incorporation documents or none of them at all?

Provided that this is a real existing company, shouldn't I be able simply to turn to another agent, show them my passport and tell them to look in the corresponding jurisdiction register, and to unilaterally transfer the company to them?

And when it comes to the Nominee Director, as I am hunting for my own right now. As far as I understand, I can change him unilaterally myself any time with the snap of the hand. So as far as I take all precautions him not to steal the money, is there anything else terrible he could possibly do? For example, to do some administrative mess. Or to leave the Director post without me knowing it and to turn out the company had been left without a Director for a long time (this is the worst I can actually imagine)?

Many thanks in advance.

 

[Sols]

Since they know your address, they could come to your house when you sleep at night and stab you. That would be pretty bad for your business.

Aside from murder, the worst they could do would probably be take actions that ultimately cause your company to be dissolved, take over and drain the company's bank accounts, incur enormous debts for the company, or sell your identity.

When agents disappear, your options vary by jurisdictions. Sometimes you can simply move it to another agent (especially if you are or take over as director or immediate majority shareholder). Sometimes the agent that vanished was just a reseller and you might be able to continue on with the underlying registered agent.

If your nominee director disappears, you can replace them so long as you have voting powers in the company. If there is a nominee shareholder, study the nominee agreement to understand your options. Ideally, have signed but undated documents where the nominees resign that you can date and countersign at any moment, to take over the company.

 

[CyprusLawyer101]

Your best bet, would be to find an offshore lawyer who can provide all the services you require. Then explain to them your concerns so that appropriate steps and documents are being implemented to provide for your security and comfort. All your concerns are addressable by structuring properly and you dont even have to trust the lawyer.

 

[wellington]

Hello,

I have proposals to incorporate in BVI or Gibraltar from different agents and the prices could literally vary in the 3X range.

Everyone would prefer to work with a nice agent, but I am wondering also in general, what is the worst thing that could happen, if for example the agent simply disappears together with its website?
In this case, what happens to the company (which is officially mine as per documents), if, let's say I have only the digital copies of the incorporation documents or none of them at all?

Provided that this is a real existing company, shouldn't I be able simply to turn to another agent, show them my passport and tell them to look in the corresponding jurisdiction register, and to unilaterally transfer the company to them?

And when it comes to the Nominee Director, as I am hunting for my own right now. As far as I understand, I can change him unilaterally myself any time with the snap of the hand. So as far as I take all precautions him not to steal the money, is there anything else terrible he could possibly do? For example, to do some administrative mess. Or to leave the Director post without me knowing it and to turn out the company had been left without a Director for a long time (this is the worst I can actually imagine)?

Many thanks in advance.

Had a BVI company established by a UK based broker a few years ago.

When it was created, the company (person) refused to hand over the documents for the company, unless i sent a physically verified (by lawyer) copy of my passport from where I was in HK to the UK, obviously i refused, as they'd already had a scan straight from the layer, which should suffice, anyway they reused (said it was KYC/AML) which was a joke because the document scanned over covered that.

When i was paying them (pre-creation) my bank actually rejected their UK account (straight up rejected sending funds to it), ended up doing via their IBAN - should have clocked.

Anyway, a year passed and the renewal was due, i'd had a Dubai based broker issue a new company (having not used the one above for obvious reasons - had no paperwork), i asked them to also try and transfer the UK created BVI company under their management, the UK Broker was rejecting and trying to delay, delay which would have accrued fines.

In the end, i had to write a stern letter, informing them if they refused to release it that very day I would not fluff around, and would start a court case and hold that agent personally responsible for the rep damage, and all costs, and then costs for stress/anxiety, and would not care if it cost me 100k to get 10k because I don't like people playing games.

Company was released that very afternoon - Dubai company (agent) now manages, never used it, basically dormant, and will freely give away or leave to go dormant (this year).

I trust this gives you an idea as to how 'difficult' agents can be, I've never experienced anything like this and have lived away from the UK in a decade + with companies world wide and never any issues before, and after that.

 

[EliasIT]

Great topic and stories so far

 

[pastet89]

Sounds

Had a BVI company established by a UK based broker a few years ago.

When it was created, the company (person) refused to hand over the documents for the company, unless i sent a physically verified (by lawyer) copy of my passport from where I was in HK to the UK, obviously i refused, as they'd already had a scan straight from the layer, which should suffice, anyway they reused (said it was KYC/AML) which was a joke because the document scanned over covered that.

When i was paying them (pre-creation) my bank actually rejected their UK account (straight up rejected sending funds to it), ended up doing via their IBAN - should have clocked.

Anyway, a year passed and the renewal was due, i'd had a Dubai based broker issue a new company (having not used the one above for obvious reasons - had no paperwork), i asked them to also try and transfer the UK created BVI company under their management, the UK Broker was rejecting and trying to delay, delay which would have accrued fines.

In the end, i had to write a stern letter, informing them if they refused to release it that very day I would not fluff around, and would start a court case and hold that agent personally responsible for the rep damage, and all costs, and then costs for stress/anxiety, and would not care if it cost me 100k to get 10k because I don't like people playing games.

Company was released that very afternoon - Dubai company (agent) now manages, never used it, basically dormant, and will freely give away or leave to go dormant (this year).

I trust this gives you an idea as to how 'difficult' agents can be, I've never experienced anything like this and have lived away from the UK in a decade + with companies world wide and never any issues before, and after that.

Sounds terrible! But I am so glad you eventually solved it!

So in any case, I must insist to get a phisical set if the originals of the company documents?

P.S. Do you want to share the name of the UK agent so we stay away from them?

 

[James Turner]

In the UK KYC and AML regulations stipulate what is needed in order to be compliant with regulations. If an agent fails to obtain documents that meet the requirements of their regulator (which is often HMRC in the UK) and they are subsequently audited, it is common for the regulator to issue a fine or even rescind the licence of that agent who is none compliant, preventing them from operating in the future.

A scanned copy of ID is not sufficient in most cases, even from a lawyer (although things are changing) and having that physical Certified or Notarised ID on file would be a necessity to avoid regulatory issues, so I can see why anyone, especially in the UK would insist on this. The trigger for regulators in the UK is; 'Did you release documents to the client who has not passed AML'. If that is a yes, you have a problem, so not releasing documents until the client complies would be the only option to protect yourself.

No agent in their right mind would risk their business by releasing documents that go against their regulators stipulations. Meeting the requirements is not too difficult in my opinion and it is extremely rare, especially nowadays when we are all familiar with KYC to supply what is needed. If someone is not willing to supply ID then I can see why you may have a problem.