In certain jurisdictions, bearer shares have common legitimate use, such as to facilitate the transfer of shares and to avoid costs associated with the transfer of registered shares ( stamp duties, expenses incurred through the use of a notary, cost of printing new registered share certificate, etc.)
However, in certain jurisdictions and in certain commercial contexts, the high level of anonymity that bearer shares provide make them attractive for nefarious purposes, such as money laundering, tax evasion and other illicit conduct, especially when they are issued by private limited companies.
Bearer shares are permitted in many (but not all) jurisdictions, both onshore and offshore. However for instant in Uruguay it is the most common thing to form the company by using bearer shares, same in the Netherlands Antilles.
In many continental European jurisdictions, public limited companies are permitted to issue bearer shares while private limited companies are not allowed to do so.
In Gibraltar, for example, an exempt company may issue bearer shares but they must be disclosed to the authorities. Furthermore, the names of the beneficiaries must be disclosed to the authorities. Therefore Gibraltar lost their privilege as Offshore Jurisdiction and as TAX haven; it isn’t of interest for businesses or individuals to form companies there any longer.
Corporate service providers regularly design structures to ensure that the beneficial owner remains anonymous and often act as the intermediary between the client and the authorities in the jurisdiction of incorporation.
For Offshore Company Formation (IBC) or Cyprus Bank Account, please contact cclogic.com we have specialized our services to warrant your anonymity.
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