International Business Company (IBC)

What is IBC?

An International Business Company (IBC) is a type of offshore company designed for international business operations and non-resident ownership (such as non-domicile LLC and non-domicile Ltd.). The concept of IBC emerged in the 1980s and is mainly used for tax planning, asset protection and international trade.

IBCs are typically registered in jurisdictions that have favorable tax regimes and regulatory environments, such as the British Virgin Islands (BVI), the Cayman Islands, Bermuda, Belize and the Seychelles.

Advantages

These jurisdictions typically offer a number of benefits to IBCs, including:

Tax exemption: IBCs are generally exempt from local business taxes, income taxes and capital gains taxes.
Privacy and AnonymityMany IBC jurisdictions offer a high degree of confidentiality and allow the use of nominee directors and shareholders to ensure anonymity.
Minimal reporting requirements: IBCs often have less stringent reporting requirements compared to companies registered in other jurisdictions, reducing administrative tasks.
Flexible corporate structure: IBCs usually have a flexible corporate structure that can be tailored to the specific needs of the company.
Fast and simple start-up processesThe incorporation process for IBCs is often faster and easier than in other jurisdictions.

Important basic knowledge about IBC

Is it one Non-Domicil-Company?

Yes, one International Business Company (IBC) is a non-domiciled company, as it is registered in a country in which neither the owner nor the management is domiciled and the company does not conduct any business activities in this country.

Is these Legal form international recognized?

Yes, the legal form of an International Business Company (IBC) is internationally recognized.

How are the Regulations for the Resolution or Liquidation?

The dissolution or liquidation of an IBC is relatively simple and in most cases can be completed within a few weeks. However, it is important to comply with the laws of the country in which the IBC is registered.

Which Requirements gives it regarding the Corporate structure and the Managing director?

There are few requirements for the corporate structure and directors of an IBC. In most countries, at least one director and one shareholder must be appointed, who need not be resident in the country where the IBC is registered.

Which Accounting and Reporting obligations exist?

The accounting and reporting requirements for an IBC are less stringent in most countries than for other companies. Often no annual balance sheets or profit and loss statements are required.

Is it one legal Person and has them one Limitation of liability?

Yes, an International Business Company is a legal entity and offers a Limitation of liability for the shareholders.

How high should the Share capital be?

The share capital required for an IBC varies depending on the country in which it is registered. In many countries there are no minimum requirements for share capital.

What costs the Foundation?

The costs for setting up an IBC also vary depending on the country. In some countries, it may be possible to set up an IBC for just a few hundred US dollars.

Is a such The company corporate or subject to trade tax? When yes, like high is the Percentage?

In most countries in which IBCs can be established, tax exemptions apply to companies that do not conduct business activities in the country. IBCs are therefore generally not subject to corporation or trade tax.

How high is Allowance for Value added tax with Online trading, Services and Trade with material goods?

As many countries in which IBCs can be registered, do not charge sales tax or tax exemptions for foreign companies, in many cases there is no need for an allowance for VAT.

Become otherwise still any Taxes due?

As many countries offer tax benefits for IBCs, in most cases no further taxes are payable. However, it is advisable to on the specific tax laws of the country in which the IBC is to be set up.

Will the Income the Company to the Income of the Managing Director counted? When no, must the Managing Director and Employees only for her own Income Private income tax pay?

No, the company's income is generally not included in the managing director's income. This means that directors and employees only have to pay personal income tax on their own income if they are employed and such a tax exists in the country in which they are resident.

Please note that this information is of a general nature and the specific regulations for IBCs may vary from country to country. It is always advisable to seek professional advice to ensure that all legal and fiscal regulations are complied with.

Conclusion

IBCs are often used for various purposes, such as Example international Trading, asset management, intellectual property management and financial transactions. However, it is important to seek professional legal and tax advice before setting up an IBC to ensure compliance with international regulations and avoid potential pitfalls.