Beneficiary: who is this?

The beneficiary is a concept that is often used in various spheres of offshore business. What does it mean?

The beneficiary is a person who benefits, profits, profits from business. So they call the final recipients of payment. Depending on the situation, the value may be different.

Ownership of the company

Most often, at the opening of enterprises, shareholders, directors, etc., are registered, but the names of real owners remain unsolved. In this case, the beneficiary is a person who actually owns and benefits and profits 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. At the same time, the legal right of ownership can be assigned to other people or companies. Information about the beneficiaries is confidential, provided exclusively to the bank or registration agent.

Due to the use of nominee directors and shareholders in offshore companies, it is often concealed who is the ultimate beneficiary. This scheme is most often when using a nominal agreement or a trust declaration. Occasionally, the act of establishing trust is applied.

Thus, the chain of owners, including beneficiaries, rarely becomes public.

Owning a bank account

In this case, the beneficiary is the owner of a bank account that has control over the assets or cash in that account. This person can indirectly or directly manage finances. Moreover, the concept applies only to persons who have full control over these means, even if the beneficiary does not directly perform any operations, but they pass at his direction. When opening an account, credit institutions always request information about the ultimate beneficiaries.

Trust management

In this case, the beneficiary is a person who receives income from property transferred to a trustee or given to third parties for use.

Insurance

In this case, the term is applied to a person who receives an insurance sum. If the person is insured for death, the primary (or conditional) beneficiary may be any other person.

Inheritance

The beneficiary is the heir in accordance with the will.

Rent of property for rent or lease

The term is applied to an individual who receives a rent or a rent.

Letter of Credit

If the money is drawn up under a letter of credit, the beneficiary of a documentary credit is a person whose name the issuing bank opens it.

Opportunities and rights of beneficiaries

If the beneficiary owns shares of the enterprise, he has the right to transfer his ownership rights to another person. The ultimate owner participates in the resolution of issues related to the share capital. Also, the beneficiary has an indirect right to vote at meetings of shareholders. The owner can take part in the choice of the company's board.