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Offshore corporation is a flexible and efficient tool for offshore investment and asset protection that successfully guards your wealth from bankruptcy and lawsuits. The International Business Corporation (IBC) provides a corporate shield that enables an individual, group, or existing corporation to run a business, make investments and hold assets in a protected environment while the beneficial owner maintains anonymity. |
International Business Corporation is a statutory limited liability company, established in a jurisdiction that provides tax concessions to non-residents. Such jurisdictions provide strict financial privacy and secrecy. This offshore entity has a registered local office and director(s) and is owned or controlled by non-residents.
Being domiciled offshore, the IBC is only subject to the laws and regulations of the domiciled jurisdiction, and owing to its non-resident status, it has access to investment or business opportunities that may not be readily available in the owner's country of residence. Such companies generally cannot carry on any local business or invest in local property. Typically, offshore corporations are not allowed to operate banking, insurance, reinsurance and trusteeship services.
A corporation is an entity recognized by law as a separate "person" with limited liability. Offshore corporations may be used to own and operate businesses, issue shares, bonds or otherwise raise capital, guarantee obligations, hire employees, buy goods and services, sell goods and services, make contracts, rent office space, maintain checking and saving accounts, and maintain retirement plans for employees. The company can function as an international trading company, possibly incurring little or no tax liability, depending on the domicile of the beneficial owner. Although most offshore corporations are private and closely held, some are publicly traded on major stock exchanges.
Its benefits
Threat to individual financial privacy by government and regulatory bodies or frivolous litigation, has resulted in several people seeking an alternative means to protecting their privacy. Offshore corporations are an excellent alternative for ensuring financial privacy and confidentiality and tax avoidance for those seeking to protect their assets.
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Quick and easy to form and requires a very low establishment fee.
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Anonymity and confidentiality of ownership and directors.
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No or low minimum capital requirement
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No residence/ domicile requirements.
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No auditing or filing of annual returns.
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No foreign exchange controls.
An IBC can be made the beneficiary of a trust, the trustee, or the protector overseeing the affairs of the trust. The Articles and Memorandum of Association can be broadly worded to enable any normal business or personal activity to be carried out. However, an IBC cannot carry out banking, trust services or the insurance business.
Owners of real estate, pleasure craft, etc. may purchase, or transfer title to an IBC and register their vessels or hold assets in an offshore jurisdiction. This precaution can preserve anonymity of ownership and may protect the assets from seizure or facilitate the purchase from existing offshore funds.
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