Patent
The recognition by an appropriate governmental agency of the ownership of an idea, process, development, etc. (See Copyright.)
Private Company
A company which does not have a listing on the Exchange and is debarred from offering its shares to the general public.
Private Trustee Company
A company incorporated in certain offshore jurisdictions, such as Bermuda, to act as a trustee for a limited class or group of trusts. Private trustee companies are not permitted to offer trustee services to the public generally.
Protected Cell Company (PCC)
A protected cell company may be viewed as a doughnut, the centre of which is the ordinary share capital of the company around which clusters a number of cells, which are individually capitalised with preference capital. The company may contract for individual cells to carry out certain activities on behalf of the company. However, it should be noted that under the PCC Legislation a cell is capable of going bankrupt in certain circumstances, leaving the core share capital untouched. A PCC is similar to a divisionalised entity, save that each division or cell can go bankrupt without the entire company being placed in jeopardy.
Protector
A person appointed by the settlor/grantor of a trust, who has limited powers to control the trustee and usually has the right to change trustees.
Proxy
A person empowered by a shareholder to vote on his behalf at meetings.
Public Limited Company (Plc)
A public company limited by shares or by guarantee and having share capital, which may offer shares for purchase by the general public. Only Plcs may qualify for listing on the London Stock Exchange.
Purpose Trust
A trust created for an express purpose without any individually ascertained or ascertainable beneficiaries. A purpose trust is typically used in circumstances where the trust would not be exclusively charitable but wholly philanthropic.
Re-domiciliation Corporations
Some offshore jurisdictions allow corporations incorporated in other jurisdictions to re-incorporate in their own at will.
Re-invoicing
Service offered to offshore trading companies so that legal title to trade goods passes to an offshore company at some intermediate point in a transaction.
Resident Company
A bank, trust company or holding company permitted to deal only in local currency. Foreign currency transactions must be approved by the appropriate regulatory authority.
Restricted Bank and/or Trust Licence
Permits the holder to carry on business with certain specified persons whose names are usually listed in the licence.
Securities
General name for all stocks and shares of all types. In common usage, stocks are fixed interest securities and shares are the rest, although strictly speaking the distinction is that stock is denominated in money terms.
Service Company
A company located in an offshore financial centre to provide management, invoicing and other services for client companies located in other countries. Initially used to advantage double taxation treaties. Service companies are now frequently used to facilitate flight capital outflow, and are often involved in money laundering schemes.
Shelf Company
Companies incorporated and held in stock for later use. This is often the fastest way to obtain offshore companies since they are fully formed and available instantly.
SRO (Self Regulating Organisation)
An organisation recognised by the SIB and responsible for monitoring the conduct of business and capital adequacy of investment firms.
Stamp Duty
A UK tax currently levied on the purchase of shares.
Stiftung
The Stiftung is a private establishment and this legal form is unique to Liechtenstein. The entity is an autonomous fund with a legal personality. The capital is not divided into shares, and the economic benefits are usually vested in the holder of the “founder’s” rights.
Trust
A trust is a common law legal structure used to legally separate the owner from his assets by handing over control to a third party, known as a trustee.
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