Too good to be true?

phildixon1

I just wondered if anyone has been paid a fee to become a director of a limited company owned by an overseas organisation/individual? A short time ago I was approached by a company (via a friend of mine) who setup limited companies for overseas clients, and the deal was that I put my name as a director, use my address as the company registered office, and I will get paid £2.5k per year for doing nothing. They said they have setup loads of companies like this in the past, and have indemnity insurance in place should things go wrong with the company, so I that am not personally liable. The businesses are online adult business. To me it sounds too good to be true…but wondering if anyone else has done this? Feels a bit dodgy to me!

theoretica

I agree it sounds rather too good to be true. Also, if it were genuine and you indeed do nothing, why would they need to pay that much?

TELLIT01

£2.5k per year for doing nothing does look tempting, but I would take proper legal advice before agreeing to it. If it looks to good to be true.....

tealady

If it looks like a duck.
The fact that the money is coming overseas would make me suspect money laundering.
The words barge pole, touch and 10 feet come to mind.

phildixon1

Thanks all...its kind of what I was thinking, but wanted to run it past others, just to confirm with myself that I was right for giving it a wide birth!

JReacher1

It could be genuine but personally I would not want my home address to be registered as an online !!!!!! business.

It would make the neighbours twitch their curtains in disapproval.

gettingtheresometime

phildixon1 wrote: »

I just wondered if anyone has been paid a fee to become a director of a limited company owned by an overseas organisation/individual? A short time ago I was approached by a company (via a friend of mine) who setup limited companies for overseas clients, and the deal was that I put my name as a director, use my address as the company registered office, and I will get paid £2.5k per year for doing nothing. They said they have setup loads of companies like this in the past, and have indemnity insurance in place should things go wrong with the company, so I that am not personally liable. The businesses are online adult business. To me it sounds too good to be true…but wondering if anyone else has done this? Feels a bit dodgy to me!

If it's such easy money why isn't your friend hogging the opportunity?

Marcon

phildixon1 wrote: »

A short time ago I was approached by a company (via a friend of mine) who setup limited companies for overseas clients, and the deal was that I put my name as a director, use my address as the company registered office, and I will get paid £2.5k per year for doing nothing.

'Friend' - are you sure?

System

A company director has statutory obligations under the Companies Act.

Most accounting firms woukd offer a service for company directorship and registered office. They do however due due dilligence process which is why your friends associates have not gone down that route.

steampowered

There are a number of accountants and similar professional business who provide these sorts of services (e.g. nominee directors, a registered office) for a fee.

These services are commonly used by overseas investors. For example, UK companies are required to have a registered office in the UK - many overseas organisations prefer to have an accountant or similar organisation use their address.

For example, https://www.elementalcosec.com/corporate-services/director-services/

This could well be perfectly legitimate. £2,500 sounds like the sort of fee which might commonly be paid to an accountant to provide a nominee director and registered office service.

However, in your shoes, I would want to understand why your friend would like you to provide the service rather than going to a professional.

You should also understand that there can be risk involved because directors of companies have statutory obligations. I would also be asking to see a copy of the company's Directors & Officers Insurance policy, and would read that to ensure I am insured against any allegation of breaching my statutory duties as a director.

SummerSunshine2

If it was Ireland I would expect you have a better excuse. Uk no.