IBC or International Business Company or as it is also called International Business Corporation is basically an offshore company which, according to the laws of some jurisdictions worldwide, is usually founded as a tax-neutral company, ie is not taxable in the country of incorporation. It is also restricted in the direct business activity that it can carry out during its activity in the context of the jurisdiction in which it is incorporated.
Importance and main functions of IBC
IBC characteristics can often vary by jurisdiction, however, they usually include business confidentiality, the ability to issue stocks, the provision of a local registered agent or branch office, and local corporate tax exemption as the majority of offshore jurisdictions do Removing IBCs from local taxation while reducing corporate tax to zero to avoid harming the entire offshore finance industry.
Such companies are generally formed for offshore banking, international investment, asset protection, real estate and intellectual property ownership, and other business activities related to international trade.
A list of jurisdictions that offer IBC as a business structure
As it says in Streber Weekly, there are many jurisdictions that offer IBC as a business structure. The list of such jurisdictions is quite long: Antigua and Barbuda, Anguilla, Barbados, Bahamas, Belize, Brunei, British Virgin Islands or BVI, Cook Islands, Comoros, Dominica, Grenada, Gambia, Mauritius, Marshall Islands, Monster Council, Nauru, Saint Lucia, Samoa, St. Kitts and Nevis, St. Vincent and the Grenadines, Seychelles and Vanuatu. This list includes most jurisdictions without considering their worldwide reputation. Some popular offshore jurisdictions, not mentioned earlier, offer territorial taxation and other tax incentives in place of IBCs. These business structures can operate as exempt companies, free zone companies or non-resident companies etc. without the ease of IBC companies: Panama, Hong Kong, Cayman Islands, Turks and Caicos Islands (TCI), United Arab Emirates (UAE), Bermuda.
For example, the Panama jurisdiction generally lends itself to International Foundation or IBC in terms of asset protection. The Hong Kong jurisdiction in general is also suitable for international trade due to the favorable tax system, as there is no withholding tax, capital gains tax, capital gains tax, VAT and other types of taxes.
Most reputable IBC jurisdictions
British Virgin Islands (BVI) are identified as the world's leading offshore business hub with more than 450,000 operating companies registered in their territory. It is often referred to as the grandfather of all IBCs. International international business corporations have a fairly good reputation in other jurisdictions of this type for the ability to transfer domicile and confidentiality of ownership for assets collected within the company. In general, BVI offers flexible, inexpensive and fast services for setting up international offshore companies.
The Seychelles can be alternatives to BVI offshore companies as this jurisdiction also offers ease of administration, simplicity and privacy. In addition, with more than 175,000 companies registered there, IBC is the most common type of company on islands. The IBCs of this jurisdiction are commonly used as consulting and personnel services companies, as well as holding companies, real estate and stocks.
Bahamas is one of the oldest offshore jurisdictions that, like the BVI mentioned earlier, is considered a classic because it is independent and politically stable, has a better reputation and is game friendly.
St. Kitts and Nevis has a good reputation but is also politically stable and has average to low costs. However, this jurisdiction is more popular for its Limited Liability Companies (LLC).
St. Vincent and the Grenadines has little cost. It is quite stable politically and has a good reputation that has improved in recent years due to its increasing popularity due to the financial operations of the Euro Pacific Bank and Loyal Bank.
Belize is also a great place for IBC training. Within that jurisdiction, IBC may be used for the purposes of international trade, asset protection, offshore banking, property ownership, e-business, or other financial services.
Such IBCs are suitable for global business transactions, as well as depositing and managing offshore investments such as bonds, mutual funds, stocks and other types of business services, while providing advisory and professional services such as management, holding corporate credit cards, and covering legitimate expenses, etc.