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At your disposal since 1996

At your disposal since 1996

At your disposal since 1996

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Belize   British Virgin Islands    Bulgaria    Cyprus    Gibraltar    Hong Kong    Malta    Panama    Seychelles    United Arab Emirates     United Kingdom    United States

 

 

International Business Company

International Business Company - commonly used as a company mediator between a seller and a buyer of goods or services when goods or services originate from one country are to be sold in another one. With other words it is a regular trading or service company with the difference that it is incorporated in a tax efficient jurisdiction. Recommended Jurisdictions are

Belize, British Virgin Islands (BVI), Bulgaria, Gibraltar, Hong Kong, Panama, Seychelles, United Arab Emirates, United Kingdom (LLP)

 

An international business company or international business corporation (IBC) is an offshore company formed under the laws of some jurisdictions as a tax neutral company which is usually limited in terms of the activities it may conduct in, but not necessarily from, the jurisdiction in which it is incorporated. While not taxable in the country of incorporation, an IBC or its owners, if resident in a country having "controlled foreign corporation" rules for instance can be taxable in other jurisdictions.

Characteristics of an IBC vary by jurisdiction, but will usually include:
Chart of an offshore company structure

    exemption from local corporate taxation and stamp duty, provided that the company engages in no local business (annual agent's fees and company registration taxes are still payable, which are normally a few hundred U.S. dollars per year)
    preservation of confidentiality of the beneficial owner of the company
    wide corporate powers to engage in different businesses and activities
    abrogation or restriction of the requirement to demonstrate corporate benefit
    the ability to issue shares in either registered or bearer form (although many countries have restricted or eliminated bearer shares now)
    an abrogation of any requirements to appoint local directors or officers
    provision for a local registered agent or registered office

It must be noted that all of the above characteristics are also attributable to many "onshore" countries which have either a residency or territorial based tax system where setting up a company, LLC or LLP in the jurisdiction along with the use of "nominees" will offer all of the above characteristics. US LLCs, UK LLPs and Hong Kong companies are all examples which are widely used in similar capacity to IBCs and which meet all of the characteristics above.

However, under pressure from the Organisation for Economic Co-operation and Development (OECD) and the Financial Action Task Force on Money Laundering (FATF), most offshore jurisdictions have removed or are removing the "ring fencing" of IBCs from local taxation. In most of the jurisdictions, this has been accompanied by reductions of levels of corporate tax to zero to avoid damaging the offshore finance industry.

In contrast, Seychelles residents are legally able to own and operate a Seychelles IBC as long as the IBC is not conducting business within Seychelles. Seychelles also has a "territorial" tax system meaning that Seychelles residents are only taxed on their locally sourced income. Therefore, there is no advantage to non-residents over residents and claims of "ring fencing" have no merit on the Seychelles IBC. This has been, and continues to be, used successfully by Seychelles in defense of the Seychelles IBC vs. international bodies such as the OECD and FATF. Boosting the defense even more is the fact that there are no restrictions on a Seychelles IBC owning shares of a Seychelles domestic company.

Further, most jurisdictions have either eliminated or highly restricted the issuing of bearer shares by IBCs due to international pressures.

Title Published Date
BELIZE – International Business Company 08 December 2014
British Virgin Islands – Business Company 08 December 2014
Bulgaria - Offshore Alternative Company 26 January 2015
Bulgaria’s PM: Dobrich – Silistra Gas Pipeline Issued Final Certificate of Fitness 06 October 2015
Deputy PM Identifies Most Prospective Sectors of Bulgarian Economy 08 October 2015
Enhancing Inter-Connectedness to Reduce Energy Prices in Balkan Countries 22 September 2015
FATCA, FBAR 11 March 2015
Finland Raises Taxes for Wealthy Individuals 12 September 2015
Fitch Lowers Bulgarian Energy Holding’s Rating to ‘BB-‘ 17 September 2015
GIBRALTAR – Nonresident Company 08 December 2014
Greece 'Being Forced to Cancel' Witholding Taxes on Sources Abroad 01 October 2015
Korean Companies Interested in Electric Vehicles Production, Cheese Processing in Bulgaria 08 October 2015
Limited Liability Partnership, United Kingdom 08 December 2014
Online offshore company 09 December 2014
PANAMA – International Business Company, IBC 08 December 2014
SEYCHELLES – International Business Company, IBC 08 December 2014
UAE – United Arab Emirates 08 December 2014
UK Needs Carbon Tax Overhaul 14 September 2015
US 'Applying Pressure' on Greece to Build Gas Link w/ Bulgaria 19 October 2015
Wait Times for HMRC Hotline Reaches 47 Minutes 12 September 2015