Bearer Shares

In most onshore jurisdictions (such as the UK and US) nearly every share a company sells or issues is registered with a government agency. The government and other parties know who owns the shares of a corporation and what price the shares were bought or sold for. However, offshore corporations issue bearer shares. The bearer (the holder, or the one with possession of) the share certificate is the owner of the share. Only the bearer knows that they own stock in the offshore corporation. Unlike registered shares, which are transferred by an instrument of transfer and display the shareholder's name on the actual share certificate, the name of the holder is not registered in the books of the company.

Therefore, the ownership of an offshore corporation (IBC) remains private. Bearer shares may be bought, sold or exchanged in complete privacy. Dividends are not received automatically from the company and must be claimed by removing and returning 'coupons' attached to the certificate.