Limitation In Using IBCs
Internatinal Business Company ("IBC") is core in offshore
company operation. An IBC enjoys exempt status in all kinds of taxes
and stamp duties in the country of incorporation. Careful structured
offshore company may help the full tax exemption in the country
of operations as offshore income.
A typical
IBC can -
- Carry on business anywhere except for its jurisdiction of
incorporation;
- Acquire land or property anywhere in the world;
- Hold shares of other company (even incorporated in its jurisdiction
of incorporation);
- Hold meetings of its directors or members anywhere in the
world;
- Maintain corporate bank accounts anywhere;
- Issue bearer shares (subject to the availability in the jurisdiction
of incorporation);
- Registers of Beneficiary, directors and members are Not listed
in public records;
- No resident director requirement (depends on rules in different
jurisdictions);
- No annual return and/or audited accounts required for filing.
However, an IBC can
NOT (subject to the availability
of specific licence) -
- Have business transactions with persons resident in its country;
- Provide banking, insurance, trust, mutual funds or reinsurance
services or other specific services as regulated in its country;
- Share its registered office.
