The Advantages and Functions of International Business Companies (IBCs)
International Business Companies (IBCs) are offshore companies that are primarily used for investment and as a vehicle for international trade. They are exempt from most types of taxes and are 100% tax-exempt in the jurisdiction of incorporation, providing several features and benefits that make them ideally suited for some uses.
IBCs have the same power as a local company and can engage in different businesses and investment activities worldwide while benefiting from tax exemption. However, an IBC cannot exercise business activity in the jurisdiction of its incorporation. Offshore jurisdictions where IBCs can be incorporated include Dominica, Belize, Seychelles, Panama, Anguilla, British Virgin Islands, Hong Kong, Mauritius, and many other countries worldwide.
Functions of IBCs mirror those of offshore companies, and they can conduct international trade, operate as special purpose entities, offer asset protection and security, consolidate intellectual property licensing and franchising entities, engage in offshore banking for anonymity and limitless transactions, and bypass sanctions, embargoes, and other limitations between countries to do business.
There are several advantages to setting up an IBC, including holding assets confidentially and protecting them from litigation, product liability, malpractice suits, creditors, and divorce proceedings. IBCs are also often attracted by zero tax, but some get nominal taxation dependent on the profits. They are exempt from tariffs and can operate as a wild card in the commercial world, entering any business without restrictions. IBCs can also be used to own or function the usually precise amounts of money on rarities and antiques.
It is important to note that IBCs cannot carry out commercial transactions with individuals residing in the jurisdiction of its incorporation, provide insurance, banking, or reinsurance services. To set up an IBC, it is necessary to carry out several steps, and it is advisable to seek professional assistance.
Business Setup Worldwide provides offshore services like incorporating an IBC, offshore banking, accounting and bookkeeping services, and intellectual property services. They can assist in setting up an offshore company and help you determine the best place to incorporate an IBC based on your business activity, your supplier and client’s location, your tax residency status, and more.