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The International Business Corporation or IBC is basically an offshore company, which is formed under laws governed by that particular offshore location. The most important fact is that an IBC can not do business in the same offshore location where it has been formed. These days many corporations are being forced, at offshore locations, to utilize the different benefits provided there, which include asset protection & tax shelter among others. There is more. These are the two main reasons for opening an account at an offshore bank or registering as an IBC.

The best part of operating an IBC is that it will provide you with complete confidentiality & there will be no tax penalties whatsoever on the profit that your business makes. In the normal procedure, it’s the responsibility of the bank to report your financial health as well as profits to the government but when operating an IBC, this isn’t the case. But the point is how can you open an IBC & operate it? Where should you register ® your IBC? And what are the legal procedures for registering an IBC?

Different countries have different legal procedures & requirements for IBC & the one person who can really guide you through this is your offshore consultant. The laws at offshore locations & their requirement checklist, for an IBC, keep changing from time to time. Hence, you’ll need an experienced & seasoned offshore consultant. Your offshore consultant needs to have enough experience handling IBCs & always be updated regarding the changes that take place at various offshore locations. Knowledge is power & the more abreast your consultant is with the rules, regulations & updates, the better equipped he/she will be to guide you through the procedures. By example, Antigua & Barbuda charge 40% tax on profit from incorporated, registered, or continued companies & 2% tax on gross income of unincorporated businesses. There is more. This percentage can change in 2008 or by the end of the financial year. Hence, your offshore consultant needs to always have the information in case there’re any changes. After all, if you’re registering an IBC in Antigua & end up paying more taxes on profits than required then the entire venture will be a total loss.

In some places, the documents required for IBC include original Certificate of Incorporation, Articles of Association, Memorandum of Association, the Minutes, & Resolutions dealing with the appointment of Directors & the allocation of shares, share certificates, copies of the Registrar of Directors & the Registrar of Shareholders. There is more. There will be additional documents required if ordered to provide a professional director or nominee shareholder service, & this may include share transfer forms, trust declarations & appointments of agent or power of attorney. The agent may also be required to provide the corporate seal. In such a scenario, it’s imperative to select a consultant, who is reliable, & knows his way through the maze of incorporating an IBC. It’s better to invest time & money in an experienced offshore consultant than pay less & hire some one who will misguide you.

Simon is a leading expert in Offshore Banking & Offshore Incorporations. He owns a company dedicated to helping people set up affordable & watertight offshore banking & business solutions. You can find out more about the services he offers at PriorTaxpayer.com

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