FAQS Offshore company registration
What is an IBC and what can it be used for?
An international business company or international business corporation (IBC) is an offshore company formed under the laws of some jurisdictions as a tax-free company which is not permitted to engage in business within the jurisdiction it is incorporated in. IBCs are offshore companies that are most commonly used for offshore banking, to conduct international trade, investment activities, to offer professional services and for asset protection. IBCs are commonly used for the ownership of real property and land; for ownership of intellectual property, licensing and franchising; personal service by individuals working overseas and offshore e-business. An IBC can hold assets in a safe, secure financial center. At the same time, an IBC also allows the owner to retain 100% control of assets. An IBC’s assets are extremely private. In the offshore jurisdictions, there is no ITIN required in order to open an IBC bank account. It is a crime for a banker to reveal your association with a bank account to anyone outside of the bank. IBC ownership records are not available in any public record. There are countries with IBC laws that take privacy very seriously. The asset protection provisions in some countries are extremely strong. Many of these countries are island nations that have become financially strong by offering a safe-haven in which to store one’s money.
What are the differences among an offshore company, offshore corporation and IBC?
There is no practical difference between them. They are all offshore legal entities, called differently depending on the jurisdiction. Other terms used include non-resident company or corporation.
What is Limited Liability Company (LLC)?
A limited liability company or a company with limited liability (abbreviated L.L.C. or LLC or W.L.L) in the law of the vast majority of United Stataes jurisdictions is a legal form of business company that provides limited liability * to its owners. Often incorrectly called a “limited liability corporation” (instead of company), it is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation and it is well-suited for companies with a single owner.
It is important to understand that limited liability does not imply owners are always fully protected from personal liabilities.
What is limitation of liability?
Limited liability is a concept whereby a person’s financial liability is limited to a fixed sum, most commonly the value of a person’s investment in a company or partnership with limited liability. In other words, if a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors. A shareholder in a limited company is not personally liable for any of the debts of the company, other than for the value of his investment in that company.
How long does it take to incorporate a company?
This varies with each jurisdiction. Please look into the offers.
What is ‘going offshore’?
It is the utilization of out of country corporations, trusts, partnerships, banks, funds, management firms, etc. to legally safeguard assets, minimize taxes, plan for the future and get involved in global investment opportunities.
What constitutes a favorable jurisdiction?
A desirable jurisdiction should be politically neutral, follow a policy of free trade, not interfere with the commercial activities of corporations established there, and provide reasonable assurances of personal and corporate privacy. Language, quality of telecommunications, time zones, availability of professional infrastructure, and other issues are also important. Most popular jurisdictions have a legal system derived from western countries and greatly favor corporations, which are non-resident in nature. There must be a solid commitment to the protection of private property and the promotion of international trade. Most modern International Financial Centers are alike offering the services and products available through government regulation. Because of this, certain law tax jurisdictions have reputations that may or may not be true today, while others have issues with privacy, confidentiality or specific rules for information. Banking rules and regulations are also changing and will have an impact on the jurisdiction we choose. You need a modern business and communications infrastructure with moderate fees. You need not invest or run your business out of the same country that you bank with. We select the “best” of each for our clients. We keep up to date on all jurisdictions developments around the world and have relationships with institutions, legal consultants and advisors worldwide. Each entity we form is tailored to the goals and transactions of each client and we advise you on strategies and solutions.
Do I have to travel abroad to invest offshore or to set up an offshore structure?
No. Offshore investing or setting up the structure does not mean that you have to live abroad, or even travel abroad, just send us required documentation and filled up the required forms. For opening bank account in the USA, Slovenia and Hong Kong your presence is required. Offshore investing or setting up an offshore structure can be done from convenience of your own home through qualified professionals from our office, who will function on your behalf with all involved parties like offshore government departments, banks, notaries, etc. For opening a bank account, we will send you the necessary forms, which when filled, can be sent directly to the bank. At the same time, you are always welcome to visit us if you wish to do so.
What is a Tax Haven?
The term Tax Haven is generally used to refer to a jurisdiction: where there are no relevant taxes; where taxes are levied only on internal taxable events, but not at all, or at low tax rates, on profits from foreign sources; or where special tax privileges are granted to certain types of taxable persons or events. Such special tax privileges may be accorded by the domestic internal tax system or may derive from a combination of domestic and treaty provisions. (Where tax benefits are part of an economic development program the term tax incentives is usually used). Simply stated, a tax haven is any country whose laws, regulations, traditions, and, in some cases, treaty arrangements make it possible for one to reduce his over all burden. Tax havens of the world can be broadly classified into six separate categories: no-tax havens (e.g., Anguilla, Bahamas, Bermuda, Cayman Islands, Nevis, Turks and Caicos, St. Vincent and Vanuatu); countries taxing only local income (e.g., Costa Rica, Liberia, Panama, Gibraltar and Hong Kong); low-tax havens with treaty benefits (e.g., the Netherlands, the Netherlands Antilles, British Virgin Islands, Luxembourg and Singapore); countries offering special privileges (e.g., Channel Islands and the Isle of Man); tax havens for individuals (e.g., Andorra, Sark, Campione d’Italia and Monaco; tax havens for International Business Companies (e.g., Antigua, Barbados, Grenada, Jamaica and Montserrat).
Isn’t it illegal to move assets offshore or have ‘offshore bank accounts’?
There is nothing illegal about transferring assets and funds offshore. It is everyone’s right to minimize personal or corporate tax bills in own country or residence or origin. You might be breaking the law by not disclosing the information to your tax authorities when you do not declare assets or profits that should be declared according to your domestic tax code, and in this case you may be subject to certain penalties and fines or even more. The key element is if your assets and profits are ‘reportable items’ and when they must be reported. Using offshore structure properly is one of the legitimate and reliable methods to reduce your tax burden.
What is Tax Avoidance?
This term implies that a taxpayer has arranged his affairs in such a way either that his tax burden is less than it would otherwise have been or that no tax is payable as a result of such arrangement. The term is generally employed so as to indicate that the taxpayer has acted in a lawful manner and differs fundamentally in this regard from the concept of “tax evasion” which is illegal.
What is a Tax Evasion?
Fraudulent or illegal arrangements made with the intention of evading tax, e.g. by failure to make full disclosure to the revenue authorities. The term denotes those activities deliberately undertaken by a taxpayer to attempt to free himself in an illegal manner from the tax to which he is subject. Tax evasion embraces such activities as sham transactions and the falsification of tax returns or of books and accounts. The element of illegality distinguishes tax evasion from tax avoidance.
What is an asset protection?
Asset protection (sometimes also referred to as debtor-creditor law) refers to a set of legal techniques and a body of statutory and common law dealing with protecting assets of individuals and business entities from civil courts judgments, monetary claims and various creditors. Asset protection helps to minimize the risk of loss coming from unfriendly individuals, businesses and government departments. Asset protection shields and protects many families from business failures and lawsuits. Without proper asset protection, a life of a person or a business could be ruined in a court. There are many programs available to help an individual or business minimize and/or avoid asset loss risks. The best way to protect your assets is to seek offshore asset protection strategies.
What are nominee directors and nominee signatories?
Nominee Director – a director whose function is passive in nature. The director receives a fee for lending his or her name to the organization. Nominee directors are subject to director responsibilities. Nominee directors are directors that we appoint for you. Each corporation or foundation must have a certain minimum number of directors appointed when registered. The directors names and some of their personal details are on the public deed of the corporation (or foundation) and this information is publicly available. In many cases, our clients prefer NOT to be appointed as directors on the offshore entities due to either privacy reasons, or foreign public directorship reporting rules in their home countries. The nominee directors we appoint are only there to fill in the blanks at the public registry and they have no authority over the entity for any kind of decision making. Nominee signatories are signatories that we appoint for you on your corporate accounts. In many cases, our clients prefer not to be the signatory on the corporate accounts due to either privacy reasons or foreign account signing reporting rules in their home countries. When our clients want a transaction done on their corporate account, they would simply contact a designated service representative within our firm, and make the request, after which we will forward the request to the bank to execute the transaction.