Thread: What is an Offshore IBC?

This article gives an overview of International Business Companies, covering everything from what they are to what they can offer the individual or corporate owner.

What is an Offshore IBC?
An Offshore International Business Company is an entity (or company) that can only operate outside the country of its incorporation. Alternatively it can only trade with another offshore IBC in the country of its incorporation.

What can an IBC be used for?
IBC’s are vehicles chosen by many individuals and corporates nowadays for everything from international trading, offshore investment, purchasing and owning real estate abroad, ownership of intellectual property and protection of certain asset classes, for the employment of overseas placed staff, for efficient tax planning and offshore e-business.

How can I establish an offshore IBC?
Probably the simplest way is to employ one of the many companies offering offshore company formation services and buy a company ‘off the shelf’ in your preferred tax efficient jurisdiction.
These offshore company formation firms advertise across the internet.
It’s important to check the services they offer you, the fees they charge and the speed and efficiency of the service they advertise; but chances are you’ll find a service provider who can establish you an IBC far quicker and simpler than you could if you decided to do it alone.

How does the ‘off the shelf’ incorporation process work?
Well, each company is different, offers various features and benefits and charges varying degrees of fees but as a general rule - to purchase an ‘off the shelf’ company and become the legal owner of an IBC the first step will be to establish your identity - you will most likely be asked to prove your identity by supplying the formation firm with a clear and legible copy of one of the following documents: -
Passport, ID card, driving license or social security card
The document should show a clear photograph of you together with basic personal details and a signature for ID verification purposes.
In terms of establishing and maintaining confidentiality, it’s important to be sure your details and identity are kept confidential by the incorporation company you employ and that they only recommend IBC’s from jurisdictions without open Registers of Directors and Shareholders...this will mean your confidentiality can be maintained.
If this is the key to your selection process make sure any jurisdiction recommended to you for the incorporation of your IBC offers a nominee service as well so that your name is kept off the company’s key reporting documents.
Remember that the only time confidentiality cannot be guaranteed should be in the event a court order is used to enforce disclosure. This only happens if serious criminal activity is suspected.

What are the best offshore jurisdictions for IBC incorporation?
The country you choose for the incorporation of your offshore international business company will depend entirely on your own personal circumstances - from where you reside to what you want the company for.
Some of the most popular jurisdictions are Dominica, the British Virgin Islands, Belize, Panama, Gibraltar and The Seychelles.
These jurisdictions generally have the best offshore legislation in place and present the best opportunities for those interested in the offshore sector as a whole.

What sort of costs are involved in maintaining an Offshore IBC?
Again, there is no set answer to this question - a lot will depend on the company you choose to help you incorporate you company, any extra services you require and the jurisdiction you choose for incorporation...prices can range from £200 to £2000 for basic fees alone. It entirely depends on the choices you make and the requirements you have.
Do shop around though...many companies are aware that they have a fairly captive market as they offer such a value added service - but there are enough companies out there offering offshore company formation to keep prices competitive.
Do your due diligence!