Glossary Item

Registration data is the information that must be filed with the regulatory authorities of a state to establish a limited liability entity, trust, foundation or other legal person or entity.

In the case of a limited liability entity this might be the constitution, details of mem­bers, directors and the secretary. In the case of a trust the required documents might be the constitution, the name of settlor, details of the trustees and any instructions such as side letters regarding management of the ar­rangement, and so on.

The quality and quantity of registration data required differs vastly depending on the type of legal entity or arrangement chosen and the requirements of the jurisdiction in which this structure is created. In some cases, little or no data need be filed with central authorities. These are most often tax haven or secrecy jurisdiction locations. In others rather more is required, and data requirements and proof of identity of beneficial owners are rigorously enforced. Usually data requirements are more onerous for companies and foundations than for trusts, where in most cases little or no registration data is needed. The requirement to hold such data for trusts is often devolved to those professional persons helping es­tablish such entities in many jurisdictions.

The weaknesses in registration data are not exclusive to tax haven / secrecy jurisdic­tion locations. Neither the UK nor USA requires proven data on the beneficial ownership of limited liability entities to be made available to regulatory authorities when companies or corporations are formed within their domains.

The weaker the registration data is the more likely it is that ‘shell corporations' will be created for the purposes of abuse that will be difficult to trace.

See also incorporation.

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