Offshore companies

One thing that Singapore companies do not have are bearer shares as this type of shares are prohibited under the Companies Act. These bearer shares have no shareholders' names. They are transferred like cash, by passing the appropriate documents to the intended recipient.

Many offshore companies allow for bearer shares. Offshore companies are formed in countries where regulation is much laxer and often income tax is low or non-existent.

With bearer shares, the opportunity for protection of privacy is increased. Tax avoidance and planning is also more effective.