What are bearer shares and registered shares?
Bearer shares are shares with no name on them. They are payable to “Bearer”. Such shares provide more privacy than Registered Shares which do have a name on them and are generally registered in the jurisdiction of incorporation. Bearer shares are also advantageous in that such shares can easily be passed to others without formalities. The Bearer is the owner and therefore the shares can be sold to other and simply given to them as proof of ownership. Also, in case of death, the bearer shares can be left to children or others without any need for probate or other formalities. Registered shares, however, must be re-registered and re-issued. One disadvantage of bearer shares is that not all banks will open bank accounts for companies with bearer shares. Bearer shares are available in the following jurisdictions : Samoa, Seychelles. The offshore company is usually restricted from entering into gaming activities, insurance and banking without additional licences.
