Bearer shares - is this still applicable for any company setup offshore?

[sonato]

I'm so new to all of it and foudn the Bearer shares model to be used by some people for companies in Seychelles, Uruguay, Paraguay and even in the BVI it was possible to setup a company with bearer shares!

If I understand it correct, "bearer shares are unregistered equity securities owned by the possessor of the phycial share documents." this is at least what I can read Googling the term.

I can't see if this is still possible to setup a company anywhere in the world (more offshore jurisdictions) with bearer shares or if this is somethníng that is outdated not possible any longer, can someone help me please?

 

[KJK]

Yes it is possible, there are some countries. I believe no longer possible in Seychelles afaik.

Probably 99% of banks will then reject such company for an account and if you find the 1% that would accept you, they will likely want your original shares to be sent to them (so they will keep them as a deposit instead of you), so the result will be that the bank will know you, the registry may not know you if you find such country. Depends on how you want to use it.

 

[sonato]

Do you know which country and what company type I have to look into in order to use bearer shares? I would like to do some research on this topic.

 

[VESTANON]

Moreso the shares would have to be listed and must have a history of appreciation over the years as well as have significant Value for a bank to consider..also expect a few terms and conditions that could/should be met.

 

[CaptK]

Panama still do barer shares but banking will be very hard.

 

[NicolasMaduro]

Banking will be impossible and no bank will consider you

 

[djaheim]

Bearer Shares are dead. You cant do jerk with them.

 

[sonato]

okay, so bearer shares is not possible other then in Panama but if we need a solid bank account for the company it won't be possible because banks refuse account opening for companies with bearer shares. That is all clear now. I wonder if any EMI can possible accept such a setup or if they even can find out?

 

[NicolasMaduro]

okay, so bearer shares is not possible other then in Panama but if we need a solid bank account for the company it won't be possible because banks refuse account opening for companies with bearer shares. That is all clear now. I wonder if any EMI can possible accept such a setup or if they even can find out?

Nope. No EMI will accept it. No bank will accept it.

 

[sonato]

Do you think that the EMI's understand what bearer shares are and would refuse it? I mean if you just have to send them the shares and the rest of corporate docs they will achieve it I think and let you slip away with it or not?

 

[NicolasMaduro]

Do you think that the EMI's understand what bearer shares are and would refuse it? I mean if you just have to send them the shares and the rest of corporate docs they will achieve it I think and let you slip away with it or not?

I’m 99.9999% sure you wont find any EMI who will accept it.

 

[Sols]

Do you think that the EMI's understand what bearer shares are and would refuse it? I mean if you just have to send them the shares and the rest of corporate docs they will achieve it I think and let you slip away with it or not?

Yes, of course they know what it is, and it's high up on their list of things to reject clients for.

When you "send them the shares", they will see that they are bearer shares.

okay, so bearer shares is not possible other then in Panama but if we need a solid bank account for the company it won't be possible because banks refuse account opening for companies with bearer shares. That is all clear now. I wonder if any EMI can possible accept such a setup or if they even can find out?

For very large sums, you can work out solutions with banks in Switzerland, Liechtenstein, Andorra, and a few other places. Last I looked into this, they expected 10 million EUR/CHF or more in deposits or turnover, and they will subject you to extremely in-depth KYC and ongoing transaction monitoring. The bearer shares must also be deposited with a custodian, so they aren't actually mobile.

 

[KJK]

1) it is not true 100% of banks will reject you
2) if it not true bearer shares exist only in Panama, there are other countries

There are banks who accept it, licenced EMIs will reject you. And as I said, you will have to settle with just one bank who will hold the shares for you (custody) - very likely the bank will have to do extensive KYC on you and you can expect high fees for every single incoming/outgoing payment. So as I wrote, you need to know why you want that.

You can find such banks in Carribean, Switzerland, Liechtenstein etc. as Sols already correctly mentioned. You should be prepared to provide documentation for every single transfer and pay 30$ or 50$ or even more for every transfer.

 

[thirtyniner]

1) it is not true 100% of banks will reject you
2) if it not true bearer shares exist only in Panama, there are other countries

There are banks who accept it, licenced EMIs will reject you. And as I said, you will have to settle with just one bank who will hold the shares for you (custody) - very likely the bank will have to do extensive KYC on you and you can expect high fees for every single incoming/outgoing payment. So as I wrote, you need to know why you want that.

You can find such banks in Carribean, Switzerland, Liechtenstein etc. as Sols already correctly mentioned. You should be prepared to provide documentation for every single transfer and pay 30$ or 50$ or even more for every transfer.

this topic is not mine, but raised my interest. I might be interested in creating and holding company in Panama, and buy the company that I already own in Hong Kong. Doing it with bearer shares would make the privacy theme up. What do you think?

Thanks in advance for your feedback!

 

[Davis123]

The last I checked Panama, Marshall Islands and Carribean were the only ones left for bearer shares. It was an excellent mechanism but very costly these days and very difficult to get a good bank to get interested in you unless you have some serious money for Switzerland which is a reputable jurisdiction. I doubt Singapore or others even considered bearer shares even 18 years ago as 911 changed quite a lot in banking industry as well.

The last I checked Panama, Marshall Islands and Carribean were the only ones left for bearer shares. It was an excellent mechanism but very costly these days and very difficult to get a good bank to get interested in you unless you have some serious money for Switzerland which is a reputable jurisdiction. I doubt Singapore or others even considered bearer shares even 18 years ago as 911 changed quite a lot in banking industry as well.