Why registered shares better than bearer shares for offshore company?

[pesto]

Hi,


Why are registered shares better than bearer shares for my offshore company?


I'm in the process to open a offshore company in Seychelles and was asked if I want the company to have registered or bearer shares?

 

[JohnLocke]

It depends, bearer shares offers a 100% anonymity while registered shares (depending on which offshore jurisdiction) don't do simply because they are registered and therfore the beneficial owner is know to someone.


You need to have in mind that bearer shares will not work (if the goal is privacy) to oepn a bank account, the bank will require to hold the shares in custody so it makes no sense.

 

[haslan]

Can Cyprus company be with bearer shares?

 

[JohnLocke]

Bearer shares is no possible in Cyprus and actually not in the entire EU (as far as I know) but is a option for instant in the Seychelles, in the past it was a major benefit to have bearer shares for a Seychelles company (or other offshore company where it was possible) because of the privacy and anonymity, also in the past the banks didn't required to keep the shares in custody in order to open a bank account so it was the way many got a pretty good privacy protection while they opened an offshore bank account. Today we only occasionally register Seychelles companies with bearer shares.

 

[pesto]

Thanks for your help I got my Seychelles company registered only 1 week after I made my first post here :thumbsUp:

 

[plunk]

Thanks for your help I got my Seychelles company registered only 1 week after I made my first post here :thumbsUp:

Congratulations :hello: did you also got your bank account and if so did they opened it in Cyprus or where?

 

[blainchain]

Why are registered shares better than bearer shares for my offshore company?

Did you register with or without bearer shares?

 

[Joe]

Can you explain what exactly Bearer Shares are? I thought I had an understanding but now I'm confused.

 

[JohnLocke]

Can you explain what exactly Bearer Shares are? I thought I had an understanding but now I'm confused.

The Bearer share Certificate specifies that the person having physical possession of the document is the owner, e.g. there is no name of the owner written on it. The transfer of bearer shares is simple, because the transfer of the certificate accomplishes transfer of ownership.

 

[Joe]

aha, all clear but why do all of you advise against bearer shares then?

 

[JohnLocke]

Normally, bearer shares are required to be held in the country of incorporation by a Fiduciary Institution for all the jurisdictions where it is allowed to register the company with bearer shares. It is also required that the agent who registers the company must know the beneficial owner behind the bearer shares. Further to this, banks are reluctant to open bank accounts for companies which have issued bearer shares and some businesses will not enter into agreements and contracts with them.

 

[Joe]

OK, so in the past it wasn't a problem but today it is. It's a shame

 

[JohnLocke]

OK, so in the past it wasn't a problem but today it is. It's a shame

Back in 2004 it was ok and almost any offshore bank was fine with bearer shares.

 

[pesto]

wow you reopened a almost 2 years old thread Did't thought is still was alive...welcome aboard to all of you.

 

[JohnLocke]

Usually best would have been to open a new thread for bearer shares, however, now new replies came and it is ok.

 

[marcel]

Hi,
Why are registered shares better than bearer shares for my offshore company?


I'm in the process to open a offshore company in Seychelles and was asked if I want the company to have registered or bearer shares?

I came across several threads here disucsting the same thign... bearer shares are a no go. go for registered shares for your offshore company.

 

[bonox]

The good old days with bearer shares, damn I miss this time.