Attention

Bearer shares impede your business

Now that international organisations like the OECD or FATF aim to eliminate anonymous ownership instruments, your bearer shares company may prove to be more of a burden than a means of retaining confidentiality.

You should also bear in mind that some banks refuse to open accounts for companies with bearer shares or require that the original bearer share certificate be kept in their custody.

Does a company need a local director?

In the majority of cases the laws of neither offshore nor onshore jurisdictions contain strict requirements in regard to the nationality/residence of a company’s director.

However, you should bear in mind that in some countries (such as Cyprus for example) the company’s tax residence will be determined according to the place of the effective management of the company’s affairs (i.e. the location of its main executive body – the director).

Nevertheless, in cases where the tax residence factor does not affect the company’s day-to-day affairs, having a nominee director may prove to be cumbersome and expensive.