A privacy tool that ended

Bearer shares: abolished almost everywhere, and what replaced them

Updated 13 November 202616 jurisdictions, with datesAbout 10 minutes to read
The short answer

A bearer share was a share owned by whoever physically held the certificate. No name in any register: hand over the paper and you handed over the company.

Under FATF Recommendation 24, countries stopped new issues and converted or locked away the old ones. In every place on this page a bearer share now either doesn't exist or only counts once its holder is on record. It is not a privacy route any more.

Of the 16 on this page 0 places where a new company can issue a bearer share that keeps its owner unknown Abolished in 14, held by a licensed custodian in Panama, and valid in the Marshall Islands only once the holder is recorded with the registry's agent.

Search "bearer shares" and you still find pages selling them as the easy way to own a company without your name on anything. That advice is twenty years out of date. Below is what bearer shares were, the exact year each of our jurisdictions ended them, and the privacy options that are still legal, so you can get what those pages promise without the risk.

Key takeaways

  • A bearer share passed by handing over the certificate. Dividends were claimed by clipping coupons. Nobody had to know who held it.
  • FATF Recommendation 24 now says: no new bearer shares, and existing ones converted to registered shares or immobilised with a regulated custodian.
  • The BVI ended them in 2023, Labuan in 2022, Nevis in 2023, Bermuda in December 2025. The Bahamas did it for IBCs back in 2000.
  • Panama keeps them only locked with an authorised custodian, since 2015. The Marshall Islands allows them only if the holder is recorded.
  • Many banks and payment firms refuse any company with bearer shares in its structure. Some ask directors to sign that none exist.
  • The legal replacements are a declared nominee shareholder, a holding company and a register that is closed to the public.
Chapter 1

What are bearer shares?

Most shares are registered: the company's register of members records who owns them, and a transfer only counts once the register changes. A bearer share skipped the register. The paper certificate was the share. Whoever held it was the owner, and selling meant handing it across a table. Many were issued with a sheet of numbered coupons; to collect a dividend, the holder cut one off and presented it.

Example Trading S.A.

Bearer Share Certificate

This certifies that the bearer of this certificate is the owner of one hundred fully paid shares, transferable by delivery of this certificate alone.

No name is entered in the register of members.

No. 000417100 shares

An illustration, not a real certificate. The wording shows how bearer certificates worked.

OwnershipWhoever holds the paper. Lose it, and you lose the shares.
TransferBy delivery. No form, no register entry, no filing.
DividendsClaimed by presenting a coupon, to anyone who turned up with one.

They began as a way to trade shares easily in continental Europe, where "bearer" companies were common for listed businesses. Offshore company laws of the 1980s and 1990s then allowed them for private companies, and they became the classic secrecy tool: a US Treasury advisory in July 2000 warned banks that international business companies "may issue bearer shares" and need not identify their owners. That is the reputation the term still carries.

1
Key takeaway

A bearer share made the paper the owner. That made it easy to hide, easy to steal and impossible to fit with modern ownership records.

Chapter 2

FATF Recommendation 24: convert or immobilise

The global standard is FATF Recommendation 24 on the transparency of legal persons, revised in March 2022. Its interpretive note leaves countries two moves, and both end anonymity:

  1. No new bearer shares or bearer share warrants. Countries prohibit fresh issues.
  2. Existing ones are dealt with, either by converting them into registered shares, or by immobilising them: the certificate is held by a regulated custodian or financial institution, and the holder must be identified before any right, such as a vote or dividend, can be used.

"Immobilised" is the word to remember. An immobilised bearer share still exists on paper, but it sits in a vault with a licensed custodian who knows the owner and reports to the authorities. It can't be handed over a table any more.

106hidden ownership cases in the 2018 FATF and Egmont studyShell companies were the main tool. Bearer shares were "less frequently exploited" by then, because most centres had already immobilised them.
2
Key takeaway

The standard leaves two exits, convert or lock away. Both put a name next to the share.

Chapter 3

Where bearer shares are abolished: a dated timeline

Here is when each jurisdiction we work with, plus the UK, Hong Kong and Switzerland, closed the door. Dates are when the current rule took effect for the company type Heirson forms.

Bearer shares, ended year by year

The year each rule took effect. Gold: abolished or converted. Blue: immobilised, or allowed only once recorded.

Timeline of bearer share abolition, 2000 to 2025Bahamas IBCs 2000; Seychelles IBCs 2013; Hong Kong 2014; United Kingdom 2015; Panama custody 2015; Marshall Islands recording 2017; Switzerland and Curacao NV 2021; Labuan 2022; BVI, Nevis and Belize 2023; Bermuda 2025. 2000 Bahamas IBCs 2013 Seychelles IBCs 2014 Hong Kong 2015 UK Panama custody 2017 Marshall Is. recorded 2021 Switzerland Curaçao NV 2022 Labuan 2023 BVI Nevis Belize 2025 Bermuda 2000Bahamas IBCs 2013Seychelles IBCs 2014Hong Kong 2015United KingdomPanama: custody only 2017Marshall Islands: recorded 2021Switzerland, Curaçao NV 2022Labuan 2023BVI, Nevis, Belize 2025Bermuda
Abolished or convertedImmobilised or recorded

Every jurisdiction, with the rule and the source

Where you live: pick a country
JurisdictionStatusWhat the rule saysSource
BahamasAbolished, IBCs 2000IBCs may issue registered shares "but not shares issued to bearer". Old ones had six months to be recalled or became void.A 2026 bill extends this to domestic companiesIBC Act 2000, s.10 and transitional provisions
SeychellesAbolished, IBCs 2013Bearer shares prohibited for international business companies since 2013.FSA Seychelles, IBC legislation
Hong KongNo new issues, 2014The Companies Ordinance (Cap. 622), in force 3 March 2014, removed the power to issue share warrants to bearer. Warrants issued before stay valid until surrendered, when the holder goes on the register.Companies Registry briefing notes, Part 4
United KingdomAbolished, 2015No new share warrants to bearer from 26 May 2015. Existing ones had nine months to be surrendered for registered shares, then were cancelled.SBEE Act 2015, s.84 and Sch. 4
PanamaImmobilised, 2015Bearer certificates must be held by an authorised custodian who identifies the owner. Dividends on them taxed at 20%.A ban bill authorised by Cabinet on 24 March 2026 has not been traced in the AssemblyLaw 47 of 2013; reported by Panama's tax guide and press
Marshall IslandsAllowed if recorded, 2017Corporations may still issue bearer shares, but they are valid only if the holders and beneficial owners are recorded with the registry's agent. Unrecorded ones must be cancelled.Business Corporations Act s.80(3), IRI
SwitzerlandAbolished, 2021Bearer shares abolished for unlisted companies; existing ones converted to registered shares on 1 May 2021. Owners who never identified themselves lose their rights.Federal Act implementing the Global Forum recommendations, from law firm summaries
CuraçaoAbolished, NV 2021A BV only ever has registered shares; a 2021 amendment ended bearer shares for the NV too.Civil Code Book 2, art. 200; summaries of the 2021 amendment
LabuanBanned, 10 June 2022Issuing bearer shares, or converting shares into bearer form, is void.Labuan Companies Act, s.46A (Act A1653)
BVIAbolished, 2023The 2022 amendment Act, in force 1 January 2023, ended bearer shares; any still held were deemed converted to registered shares on 1 July 2023.BVI FSC explanatory memorandum
NevisAbolished, 2023No new bearer shares for Nevis business corporations; existing ones had six months to convert, then converted automatically.Nevis Business Corporation Ordinance, s.102 as replaced in 2023
BelizeProhibited, 2023 rule"No company shall issue or exchange bearer shares, bearer share warrants or bearer share certificates."Companies Act, s.9(2) as replaced in 2023
BermudaProhibited, 10 December 2025Bearer shares prohibited; any not converted are null.Companies Act 1981, s.53A
Cayman IslandsProhibitedCompanies may not issue bearer shares.Companies Act, Part 15, s.229
JerseyNot permittedJersey companies have registered shares only, with or without par value.JFSC Registry, about companies
MauritiusNot allowedNot available for the Authorised Company used by foreign owners.Economic Development Board

Showing all 16. Swiss, Curaçao, BVI deemed conversion and Panama custody details rest partly on law firm or press summaries of the law; the rest on the law or the registry itself. As at 13 November 2026.

3
Key takeaway

Where a bearer share survives at all, a custodian or the registry already knows its holder. Anonymity by paper is gone.

Chapter 4

Why bearer shares are not a privacy route today

Even where a bearer share is still lawful on paper, it fails the one test that matters for a working company: getting through a bank's onboarding.

Banks must identify the person who owns or controls a company before opening an account (FATF Recommendation 10). A share that belongs to whoever holds it makes that impossible to prove from one month to the next. So the written policies are blunt:

Wise Business

Doesn't support companies with bearer shares "regardless of where they're incorporated".

Airwallex

Refuses bearer share companies in its eligibility rules.

Bank of Cyprus

Lists companies with bearer shares as not accepted in its group customer acceptance policy.

Guernsey's AML rules

Bearer shares anywhere in a structure force enhanced due diligence on every bank there.

A Gibraltar bank

Asks directors to sign an undertaking that the company has no bearer shares and will issue none.

Malta, Labuan, Mauritius regulators

Name bearer shares as a higher risk factor in their AML guidance.

Add the practical risks and the case gets weaker still: a lost or stolen certificate is a lost company, a dispute between two people who both claim to have held it can't be settled from a register, and in Panama dividends on custodied bearer shares carry a 20% tax. Any page still offering "bearer shares for sale" is offering something banks won't touch.

4
Key takeaway

A bearer share now buys you a harder bank file, not privacy. Choose a structure your bank can understand.

Chapter 5

Legal privacy options that replaced bearer shares

What people wanted from bearer shares was simple: their name not on a public record. That is still achievable, legally, with tools the authorities and your bank accept. None hides you from them; each keeps you off the internet.

The UBO register comparison shows which places keep owner data closed to the public, and which do not. That table, not the share type, decides how private your company is.

5
Key takeaway

Privacy now comes from where the record sits and who may read it. Nominees and holding companies are legal; hidden owners are not.

Chapter 6

Bearer share questions, answered

?!
Are bearer shares still legal anywhere?
In a few places, under conditions. Panama keeps them immobilised with an authorised custodian, and the Marshall Islands allows them only if the holder is recorded with the registry's agent. Neither keeps the owner unknown. All the other jurisdictions on this page have abolished them.
What does immobilised mean for bearer shares?
The certificate is held by a licensed custodian or financial institution, which identifies the owner. The holder can't vote or take a dividend until identified. The share exists, but can't change hands by delivery.
What is the difference between bearer shares and registered shares?
A registered share belongs to the person named in the company's register of members, and a transfer counts only when the register changes. A bearer share belonged to whoever held the certificate, with no name recorded.
Can I still buy a company with bearer shares?
Don't. In most places they no longer exist, and where they do, the holder is recorded. Banks and payment firms routinely refuse companies with bearer shares in their structure, so you would own a company you can't bank.
What happened to old bearer shares that were never converted?
It depends on the law. In the BVI they were deemed converted to registered shares on 1 July 2023. In Bermuda unconverted bearer shares are null. In the UK they were cancelled after the surrender period, and in the Bahamas old IBC bearer shares became void.
What replaced bearer shares for privacy?
A company in a jurisdiction whose register is closed to the public, a declared nominee shareholder, a holding company or a trust. They keep your name off public records while the authorities and your bank still know you. See our anonymous company guide.
Cite this guideHeirson (2026). "Bearer shares: abolished almost everywhere, and what replaced them." https://heirson.com/bearer-shares/ (updated 13 November 2026).

Changelog

  • 13 November 2026: first published, with FATF Recommendation 24 and its interpretive note (October 2025 text), the 2018 FATF and Egmont Group report, and the laws of 16 jurisdictions linked in the table.
Privacy a bank will accept

Skip the bearer share. Keep your name off the public file.

We form companies in places where owner records stay with the agent or a closed register, with every filing done properly.