What is called Bearer Share?
A bearer share is a normal share in such a company. It is signed by the Chairman of the Board or Sole Director of the company and comes with all the same benefits as any other share. The difference is that the name of the owner is not recorded on the physical stock certificate nor in the public register.
The initial and annually recurring Government fees are much higher for companies having bearer shares. Finally, most banks in the world would refuse opening account for an offshore company with bearer-shares.
What is the difference between registered and bearer shares?
The main difference between these two types of shares is that registered shares are issued in the name of the shareholder, while bearer shares are issued “anonymously” to their current holder.
Altogether, bearer shares in practice do not differ much from Registered Shares, yet are substantially more expensive and imply legal and practical encumbrances.
Needs of offshore company documents certified by Apostille
So that you can use them in your country, or wherever you happen to do business. Documents issued and notarized in one country are generally acceptable only inside that one country. To make an official document legally acceptable abroad, the second-tier certification viz. the Apostille -must be obtained. Without Apostille there will be little use of the documents for most of the offshore jurisdictions such as a BVI Business Company, etc as soon as they are outside the British Virgin Islands (BVI).
If you wish to open a bank account or a securities account for your offshore company, to purchase a real estate or any other asset that requires public registration, to establish a branch or a joint venture with your offshore company, or to enter into any similar deal where you would have to present the company documents to an official third party outside offshore jurisdictions such as the BVI, etc, then they will all require that your documents are certified by Apostille.
What is a Certificate of Good Standing?
A Certificate of Good Standing is an official document, issued by the Registrar of Companies, confirming that a particular company legally exists, has complied with all administrative requirements pertaining to its continued registration and has paid all government dues, and, therefore, is “in good standing” in the Companies Register as of the given date. In its form, the Certificate of Good Standing largely resembles the initial Certificate of Incorporation of the company.
The Certificate of Good Standing (CGS) is used to formally confirm the continued legal existence of an offshore company after some time has already passed since the registration. The Certificate of Good Standing confirms that the status of an independent legal entity (a juridical person) has not been revoked or became void for the particular offshore company, that this company has not been merged, filed for dissolution, or been struck-off.
Why Certificate of Good Standing is commonly required?
Most commonly banks tend to regularly ask their clients to present a fresh Certificate of Good Standing for their offshore companies, as soon as the companies are one year and older. You may also be asked for a CGS by any other party with whom you happen to do business.
Where to get the Certificate of Good Standing?
A Certificate of Good Standing can be requested and obtained from the Registrar of Companies, as and when required. This is a common service, provided by the Registered Agent. As the Certificate of Good Standing is basically a “snapshot” of the legal health of the company at a given moment in time, ordering of a CGS in advance, without a special need, is rather pointless.
Certificate of Good Standing for non-renewal offshore companies
If, over time, the offshore company has not been properly maintained or has not paid its renewal fees, it loses its status of good standing and, ultimately, risks being struck-off by the Registrar. For such companies, it would be impossible to obtain the Certificate of Good Standing until all fees are paid and their status restored – these may be a costly including late renewal penalties and time-consuming process.
Certificate of Good Standing is a kind of verification of Service Provider
Some prudent owners of offshore companies would use to request Certificates of Good Standing for their own companies, as it is a good method of verification if their Agent or Corporate Service Provider has done the job and is properly maintaining the company. It would reveal with any lapse of the existence of the offshore companies.
What’s an incumbency certificate?
An incumbency certificate (or certificate of incumbency) is an official document issued by a corporation or limited liability company (LLC) that lists the names of its current directors, officers, and, occasionally, key shareholders.
Who signs an incumbency certificate?
An incumbency certificate is typically signed by a corporation’s officers, directors, or shareholders. The incumbency certificate also guarantees that the people who signed the document have the right to enter the corporation into a legally binding agreement.
Suitability for individuals to use Offshore Jurisdictions
Offshore jurisdictions are not just for wealthy businessmen or multinational corporations but for anyone who are looking for alternative choices.
- Persons who would like to diversify their assets
- Investors looking for better investment opportunities
- Companies looking to form a subsidiary in an overseas country
- Entrepreneurs looking to globalize their business through multi-jurisdictional management
- Online businesses that have no physical presence
- Corporations looking to take advantage of regional trade advantages
- Start-ups who want to maximize profits and minimize tax burden
- Service-based companies wanting to offshore their business structure
- Families looking for trust formation, estate planning and wealth management
- Anyone who has an international lifestyle, digital nomad or dual citizenship and are looking to minimize their tax footprints.
As a self-serving entity, individuals and companies naturally seek out the most advantageous environment to incorporate. Corporations have been pursuing offshore strategies for decades. Some of the massive multi-national companies are:
- Apple incorporated its European headquarters in Ireland,
- Facebook has a company in Delaware, and
- Google has a subsidiary in Bermuda and the Netherlands.
Attractive Liberalized Global Economy
The explosion of information and rapid increase of liberalized global economy are making the easier paths for nearly anyone to form an overseas company entirely online and is much cheaper than it ever was before.
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