International Business Company (IBC)
A momentous piece of legislation, that has completely re-shaped the worldwide offshore finance sector, achieved its 31st anniversary on August 15th, 2015. The British Virgin Islands’ (BVI) landmark International Business Companies (IBC) Act turned the BVI finance industry into an international juggernaut, which then gave birth to a successful new international business model that has been emulated in other jurisdictions around the world.
The IBC Act of BVI was developed after the US eliminated its double taxation treaty with the British Virgin Islands and a few other Caribbean countries in 1982. The Act created such a boom in the Finance Industry of BVI that many other jurisdictions were quick to follow their business model, some verbatim. In 1990, Belize and the Bahamas implemented their legislation. Next, it was replicated by Anguilla in 1994 followed shortly by Saint Lucia, Saint Kitts, and Saint Vincent. Each jurisdiction has been able to greatly increase its economy and standard of living.
An International Business Company (IBC) or International Business Corporation is a specific form of offshore company. It has been developed in specific jurisdictions around the world that engage in international business activities or investments. IBCs keep an exempt status for local corporate taxation, as long as its income is not derived from local sources.
Each jurisdiction has tweaked the IBC finance model, which is known to provide varying degree of tax advantages. Almost all jurisdictions offer freedom from corporate tax, stamp duty and income tax. Even though they are not taxable in the country of incorporation, the owners of the IBC may be subject to taxes in his own home country.
A few secondary benefits of owning an IBC come from asset protection, confidentiality of ownership, a wide flexibility of share issuance, minimal financial reporting constraints and flexible administration arrangements.
The Jurisdictions that OFC works with are:
– Anguilla IBC – Anguilla has incorporated more than 25,000 companies. Anguilla’s International Business Company (IBC) offers potential clients and companies a superior offshore location in a truly tax neutral jurisdiction. The island offers three offshore company formation products, the IBC being the most popular.
– Belize IBC – The Belize IBC was the first entity to be offered by the country as an International Finance and Investment vehicle and was thus the advent of the IFS industry in Belize. Although the country has developed immensely over the years and has introduced new legislation and new entities, the IBC remains a structure of great interest.
– BVI IBC – Since the adoption of the BVI’s offshore statute in 1984 they have incorporated more than 600,000 Business Companies (BC) and remain one of the most popular destinations for offshore company formation services.
– Cook Islands IBC – The Cook Islands offshore financial sector emerged in 1982 with the passing of the Cook Islands International Companies Act, which was later accompanied by an amending piece of asset protection legislation that is regarded as the most comprehensive and secure pieces of legislation in the world, firmly ensuring the assets of foreign Cook Island investors.
– Hong Kong Private Limited Company – Currently, Hong Kong is the absolute best option out there for a multi-currency corporate account (16 different currencies), with internet banking at one of the largest banks in the world, in one of the world’s premier and largest offshore banking jurisdictions. Only Hong Kong Private Limited Companies are eligible.
– Nevis IBC – Nevis has rapidly become one of the most convenient and favoured offshore company locations in the world. The accommodating and open offshore environment has made Nevis IBCs an exceptional product due to simple offshore regulations and ease of formation procedures.
– Panama Offshore Company – Established in 1927, it has since registered some 400,000 corporations and remains one of the premier destinations for offshore business formation. The Panamanian offshore model has since become the world standard due to its flexible formation structure, methods to ensure customer privacy and supportive legal framework.
– Panama Financial Services Company – These Licensed Panama Corporations have proven particularly popular for those looking to set up offshore financial services companies that handle third-party funds for providing electronic payments services and other related payment processing activities.
– Saint Vincent IBC – It is widely considered to be one of the most restrictive confidentiality laws globally, and is one of only three financial privacy laws in operation around the world. It is the only law of its kind found in an independent sovereign nation.
– Seychelles IBC – Seychelles has been offering clients offshore formation packages since the passing of the International Business Companies Act in 1994, and has grown rapidly in the sector due to its flexible structure, exceptional protection regulations and enabling legislation.
– Seychelles CSL – The CSL has substantial appeal (particularly to international groups), as a tax-efficient vehicle for permitted uses under the CSL Act including, in particular, use as an intermediary holding company, to hold and license out intellectual property or as a services company (e.g. management, consultancy, etc).
Features of an IBC differ by jurisdiction, but will generally consist of:
– exemption from stamp duty and local corporate taxation, as long as the IBC does not do any local business
– protection of confidentiality for the owner of the IBC
– extensive corporate authority to engage in diverse activities and businesses
– restriction or revocation of the need to show corporate benefit
– capacity to issue shares in either bearer or registered form
– revocation of any conditions to appoint local officers or directors
– terms for a local registered agent or registered office
If you have at least $250,000US in assets and are interested in finding out how to protect it, It starts with a phone call, a free consultation, to find out your point ‘A’ and where you want to go.