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Business management through a TRUST

  1. Initially, a trust is constituted, whose founder acts as a protector (controller) of the assets of the same one and of the distribution of the profits between the beneficiaries. The conditions for carrying out this control can be established in writing openly in the powers of the protector or reserved in the so-called “letter of wishes” (“letter of wishes”). The founder may choose to receive administrative reports at least once a year, as long as the fiduciary contract does not stipulate otherwise.
  2. The company that is constituted for the business is listed as trust assets, regardless of the jurisdiction in which it is registered since legally, the trust is the owner of 100% of its shares at the time of registration. Therefore, all dividend payments correspond to the trust, which already distributes them internally among the beneficiaries. 
    Of course, it would be much better for the business, if the final recipient of the profits was not an offshore “trustee”, but some in Europe, for example, in Cyprus, which has many agreements with other countries to avoid double taxation. The same applies to the receipt of royalties, leasing transactions and the collection of interest on deposits.
  3. As we saw, in the company that is constituted, 100% of the shares belong to a legal entity, the “trustee”, which owns the company and manages it in favor of the beneficiaries. The trustee himself acts as a corporate director. In this case, the trustee is not only “nominal”. He acts as the actual owner with all of his legal rights and as the director, with all the corresponding powers. 
  4. Account management and all relationships with banks assume the fiduciary, while the shareholder company (trustee) has the right to hire operational directors who can be citizens of any country and can even open accounts in all the regions where the activities are planned. ; it is worth mentioning that the second signatory will always be the trustee, being this a necessity for the security of the business. 
    In reality, the trustee is the corporate director, who entrusts some of his attributions to other natural persons, usually renewing them every year by issuing powers.
  5. In this way, the operating director (the trust owner) conducts his business quietly, while accounting and auditing are handled by the trustee. Thus, without getting involved in the substance of the business, the trustee is ready to regain control at any time.
  6. The control is carried out according to the following scheme: holder of the trust = protector of the trust = operating director of the business. The owner can have full control over the processes and decisions in the management of the business, but at the same time has the option of saying that the business is not his, that he is only a hired manager, as the documents show. 
    By controlling your business in this way, the owner can legally divert any suspicion of ownership. Being the protector of the trust (trust), the same can control the distribution of surplus funds (investment), and being the founder, can make recommendations for these investments.
  7. In case of undesirable adverse events (death, loss of capacity, detention) the trustee takes over the entire management and can sell the business at market price, or control it by hiring external managers. Such actions are defined from the beginning in the trust supplements and can be adjusted by the owner in the process of operation.

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