IBC or International Business Company or as it is also called international business corporation basically is an offshore company which is usually formed under the laws of some jurisdictions worldwide as a tax-neutral company meaning that it is not taxable in the country of incorporation. It is also limited in direct business activity it may conduct while operating within the context of the jurisdiction in which it is incorporated.
Meaning and main functions of IBC Often IBC features can vary by jurisdiction, however, usually they include business data confidentiality, ability to issue shares, provision for a local registered agent or office and exemption from local corporate taxation as the majority of offshore jurisdictions have removed or are processing the removal of IBCs from local taxation while reducing corporate tax to zero in order to avoid damaging the whole offshore finance industry.
Such companies in general are incorporated for offshore banking, making international investments, asset protection, real estate and intellectual property ownership and other business activities related to international trade.
A list of jurisdictions offering IBC as a business structure As it is stated in Streber Weekly, there are plenty of jurisdictions offering IBC as a business structure. The list of such jurisdictions is pretty long: Antigua and Barbuda, Anguilla, Barbados, Bahamas, Belize, Brunei, British Virgin Islands or BVI, Cook Islands, Comoros, Dominica, Grenada, Gambia, Mauritius, Marshall Islands, Monsterrat, Nauru, Saint Lucia, Samoa, St. Kitts and Nevis, St. Vincent and the Grenadines, Seychelles and Vanuatu. This list contains most of the jurisdictions without taking into account their worldwide reputation. Some popular offshore jurisdictions which weren't mentioned before offer territorial taxation and other tax incentives instead of offering IBCs. These business structures can be operating as exempt companies, free zone companies or non-resident companies etc. while lacking the ease of IBC companies: Panama, Hong Kong, Cayman Islands, Turks and Caicos Islands (TCI), United Arab Emirates (UAE), Bermuda.
For example, Panama's jurisdiction, in general, is suitable for International Foundation or IBC in terms of asset protection. Hong Kong jurisdiction in general is also suitable for international trade due to favorable taxation regime as it imposes no withholding tax, capital gains tax, tax on investment income, VAT and other sorts of taxes.
Most reputable jurisdictions for IBCs British Virgin Islands (BVI) is referred to as world's leading offshore business center with more than 450,000 operating companies registered in its territory. It is often called the grandfather of all IBCs. International international business companies have a rather good reputation among other jurisdictions of such kind due to the ability to transfer domicile and privacy of ownership for assets collected inside of the company. In general BVI provide flexible, low-cost and prompt services for international offshore companies' incorporation.
Seychelles can be alternatives to BVI offshore companies as this jurisdiction offer ease of administration, simplicity and privacy as well. In addition, IBC is the most widely used type of company incorporated on islands with more than 175,000 companies registered there. The IBCs of this jurisdiction are commonly used as consultancy and personal service companies as well as Holding Companies shares, real estate and equities.
Bahamas is one of the oldest offshore jurisdictions, considered to be a classic one as the BVI mentioned before as it is an independent and politically stable which has an improving reputation and is gambling friendly.
St. Kitts and Nevis has decent reputation while being also politically stable and having average to low costs. However, this jurisdiction is more popular for its Limited Liability Companies (LLC).
Saint Vincent and the Grenadines has merely low costs. It is quite politically stable with good reputation which has improved in recent years because of the gaining popularity due to financial operations carried out by Euro Pacific Bank and Loyal Bank.
Belize is also a great place for IBC formation. In frames of this jurisdiction IBC can be used with the purpose of international trade, asset protection, offshore banking, owning real estate, e-business or any other financial services.
Such IBCs are suitable for business transactions globally as well as making deposits and managing offshore investments such as bonds, mutual funds, stocks and other types of business services, while providing consulting and such professional services as management, corporate credit cards ownership, covering legitimate expenses etc.
Company formation in Philippines The development of telecommunications and economic globalization has made it possible for interested investors to form companies around the world. With proper research, financial investments, and legal backing, business ventures can safely be established in almost all of the world's countries. While it was once a complicated corporate endeavor to establish an international business, it is now commonplace with the help of experienced legal and economic advisers.
The advantages of forming a company in a foreign country are as numerous as they are obvious. Many countries offer specific location-based benefits, ranging from natural resources and established infrastructure to favorable laws and regulations that encourage growth in a specific industry. Likewise, it may be difficult to establish a venture or acquisition in one's home country because of disadvantageous situations: political or regulatory environments, lack of resources, and more. In this situation, it is useful to consider an overseas option that offers greater opportunities for growth, development, and success.
When establishing a company in Philippines, an interested investor must do due diligence with regard to legal processes, international regulations, and sufficient investment for success. It is critical to understand cultural, social, and political factors that will affect the establishment and growth of one's business; failure to do so could result in unintended consequences. Poorly-researched and tone-deaf international launches often end in disaster, as time, money, and energy is lost because of poor planning.
Legal documents Each country of the world presents its own set of intricate challenges with regard to forming, developing, and sustaining a business. Owners, financiers, and investors must enter into these engagements with the support of a knowledgeable and experienced legal team. Only someone with detailed knowledge of local and international corporate law will be able to set up an overseas business while avoiding the pitfalls that affect many new companies.
Additionally, shrewd businesspeople may consider opportunities to invest in overseas businesses without actually forming their own companies. In these situations, it still benefits the investor to team up with a knowledgeable adviser in global economics and litigation. International investments create a truly diverse portfolio that offers opportunities for growth that were unthinkable just decades ago.
Potential investors, venture capitalists, and entrepreneurs should consider existing infrastructure in Philippines when planning the launch of a new business. While substantial infrastructure and systems can help to make the business establishment a smooth process, it could also represent market saturation and diminished potential for growth. On the other hand, a lack of infrastructure often serves as a major hindrance to growth; however, lack of infrastructure indicates a clear market opening for a creative and efficient new business.
Bank Account Opening in Philippines In conjunction with company formation, it will be necessary to open one or more bank accounts in Philippines. Confidus Solutions offers the ability to open a bank account in over twenty jurisdictions, making it easy for you to avoid challenging language barriers or bureaucratic hangups.
Virtual Office in Philippines With a registered address being a necessity for international business, Confidus Solutions enables overseas investors to set up a virtual office in Philippines. This address will allow international entrepreneurs to accept mail, arrange shipping, and set up a registered bank account in the country of their business.
Cyprus is considered an ideal location for starting a business for many reasons. Geographical location is one; This magnificent island is conveniently located at the crossroads of Europe, Africa and Asia. In addition, its proximity to the wealthiest countries in the Middle East gives Cyprus a serious advantage and contributes to a accommodating environment for starting a business. The widespread use of English in all walks of life attracts business people from all over the world. About 80% of the population is fluent in English.
In terms of legislation, Cyprus investment policy changed significantly in 2000 when the minimum level of foreign investment in Cypriot companies for EU citizens was abolished (in 2004 this restriction was also lifted for non-EU citizens). It is worth noting that the government of Cyprus allows 100% foreign ownership in local companies for third country investors. In terms of taxes, Cyprus is an attractive economy: the corporate tax rate is one of the lowest in Europe at 12.5%. In addition, Cyprus has signed double tax treaties with more than 40 countries to avoid double taxation. Cyprus is an attractive offshore zone due to the very friendly relations between investors and tax authorities. All these factors create a welcoming business environment on the island.
Company formation is a very popular service in Cyprus, not least because of the simplicity of the bureaucratic procedures and ease of opening a bank account. Statistics show that in 2016 more than 200,000 new companies were registered in the country. As a location for a holding company, Cyprus also has many advantages – but first you need to understand what holding companies are and what purposes they can be used for. In short, a holding company is a company that owns enough stock in another company to control its management and policies. Holding companies are used by the owners of real estate, brands and other assets. Forming a holding company is quick and easy; Your presence is not required and the procedure can be completed by email or by post. A holding company also allows nominees. VAT applicable to Cyprus resident holding companies is only 19% and there is 0% tax on incoming and outgoing dividends.
A Cyprus resident holding company can distribute profits to non-resident shareholders entirely tax-free, while corporate income tax on intellectual property income is only 2%. Welcome to Paradise!
Incorporating a company in Cyprus usually takes around 15-20 days. First you need to get your company name approved by the Registrar of Companies who will ensure it is not already in use; this takes 3-5 business days. Then you can register your company. The entire registration process takes about 5-8 business days. The following documents are required: a copy of your passport, a confirmation of personal details, photos, a document showing the place of residence of each shareholder and a certificate of registered office. Directors are required to provide certain information related to their professions. Remember that according to Cyprus law, at least one director and one company secretary should be appointed.
It is possible to open a bank account in Cyprus whether you are a Cyprus resident or not and this can be done through an overseas branch of a Cypriot bank. In order to proceed, you will need to provide the following documents, either original or apostilled: passport, proof of residential address (such as a utility bill), and a bank reference. The main benefit is that opening a bank account is quick and easy. The account opening costs are very low if we compare Cyprus with other EU countries. Also, any natural or legal person can open a bank account in Cyprus. This gives you a Visa card that is valid worldwide, internet banking, security, anonymity and many other advantages. In addition, there are no minimum deposit requirements and bank fees for money transfers are low. Interest in registering companies in Cyprus continues to grow. More and more foreign companies and investors are discovering the advantages of the business environment of this beautiful country. Don't miss your opportunity.
As the name suggests, a person opens a savings account when they have excess funds and want to save them for the future. This type of account is used for cash that is not intended to be spent immediately and can serve as a long-term investment. Banks typically use these savings to fund other interest-bearing loans. So if the account holder wants to withdraw funds immediately, they may have to pay a transaction fee as banks often take some time to refinance.
One of the main reasons savings accounts may be preferred over other banking services is the fact that they pay interest. So you can not only invest part of your income as private savings, but also generate an additional monetary return. However, the banking industry has been affected by the sustained phase of low interest rates, particularly services such as savings accounts; That said, if your primary goal is to earn interest, it might be worth considering another financial service.
Savings accounts are easy to open with most banks, but costs vary from bank to bank. The best way to use your savings account is to set up an automatic payment on it every month or at another more convenient interval. It's important to weigh the reasonable amount of money that you can set aside each month and not take out at the end.
Multinational companies and governments around the world are increasingly looking to Africa as a new business destination. Africa's economy has grown at a rate of around 5.3% per year over the last decade and six of the world's ten fastest growing economies are located here. These countries have a fast-growing middle class that contributes to rapid urbanization that is increasing faster than their cities' infrastructure can keep up. It is a common misconception that many economies in Africa are heavily dependent on energy production. In reality, the oil and gas sector accounted for only 11% of Nigeria's GDP in 2014, while the construction sector accounted for 20%.
When considering doing business in Africa, it is not a matter of choosing just one country or all 54; a regional approach makes more sense. Sub-Saharan Africa, for example, refers to sub-Saharan countries such as Angola, Kenya, South Africa and Nigeria. Many companies already doing business in Africa are separating their operations in North Africa and Sub-Saharan Africa due to the stark economic, linguistic and cultural differences between the two regions. Here are our top 5 African countries for doing business:
Mauritius Mauritius is known for offering an extremely favorable business environment for investment and business growth. The process of incorporating a company and starting new business activities in Mauritius is believed to be straightforward and relatively easy. Mauritius' economy is mainly based on textiles, tourism, sugar and financial services, although recently other sectors such as renewable energy and information technology are expanding rapidly. The World Bank ranked Mauritius 49th in its Doing Business 2017 ranking, largely due to its pro-business approach to dealing with building permits, enforcing contracts and protecting minority investors. Another ranking of African countries places Mauritius first based on factors such as law and security, economy, human development and human rights.
Rwanda Despite nearly a decade of Rwanda's civil war, the country's leaders and citizens alike have worked to achieve a healthy business climate and a strong overall economy. According to the World Bank, Rwanda is the second easiest place to do business in Africa and ranks 56th in the Doing Business ranking. This is because the procedures for registering a property, obtaining credit and trading across borders have been greatly simplified. Tourism is currently the fastest growing sector in Rwanda. According to our research, businesses can be incorporated and operating in as little as three days.
Botswana Since gaining independence, Botswana has had one of the fastest per capita economic growth rates in the world. As the government works to diversify the country's profitable industries, diamond and other precious metal mining is currently the main contributor to the country's economy. Recently, Botswana has managed to reduce the time it takes for various processes including import and export and business formation procedures. In addition, technological upgrades have reduced the average court length for commercial disputes to 625 days (from 987 days in 2008). Thanks to these improvements, Botswana ranks 71st in the World Bank's Doing Business 2017 ranking.
South Africa South Africa's key industries are automobile manufacturing, tourism, mining and information and communication technologies. South Africa has managed to simplify its import and export procedures, resulting in less time and fewer documents required. In addition, the South African authorities have simplified tax legislation, reducing the number of hours required to prepare tax reports. The World Bank ranked South Africa 74th for ease of doing business in 2017.
Kenya Another country to keep an eye on is Kenya, which is currently making huge investments in sectors such as telecom, transport and energy. With a tech-savvy workforce and high-speed internet, Kenya stands out as one of the top countries in Africa for tech startups, while its diversified economy, strong ownership rights, excellent tourism sector and improving infrastructure make it a great location for general start a new company. If you have further questions about company formation or banking in Africa. Please contact us now.
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