Five Reasons to Consider Setting Up an IBC

An offshore company or International Business Corporation (IBC) is essentially a limited liability corporation (LLC). The only difference is that an offshore company can only have its administrative offices in an offshore jurisdiction and is generally not allowed to conduct business activities in the jurisdiction it is formed.

Considering that IBCs are pretty much the same as LLCs, why should you bother forming one?

For Major Tax Benefits

Residents of high tax countries such as the U.S. can sometimes use an offshore company structure and route their income or profits through it to reduce their taxation. In other words, an IBC can be used to reduce or even negate an individual or business's taxation burden. As long as the company in question does not enter into any business in the offshore jurisdiction it is located in, it can avoid most or even all forms of local taxation.

How well you can legally work your tax situation depends on the jurisdiction you choose and how your offshore company is structured. Still, tax reduction is the number one reason most businesses plan to set up an offshore company. Offshore incorporation service providers such as Liberty Enterprises can look at your unique needs and advise how and where to structure an offshore company for maximum benefit and gain.

For Simplification of Company Operation

Depending on the type of business you will be doing through your offshore company and the jurisdiction you favor for incorporation, the burden of everything from account auditing and the filing of records is likely to be significantly reduced. This will, in turn, reduce overheads as well as the amount of time and energy one would usually invest in such tiresome activities.

For Reduced Reporting Requirements

Not only can you simplify the structure of your overall operations through the use of an offshore company, but there are also often far fewer requirements to file information relating to those involved with the company together with the company's financial arrangements.

For Asset Protection

An offshore company can be used together with an offshore trust, for example, to enable an individual to protect their assets while retaining a certain degree of control over the way their affairs are managed. For example, by placing certain assets within an offshore company structure and then placing the company's shares within a trust, you can be actively involved in the offshore company. You can also direct the management of your business assets while remaining one step removed from them, thus gaining maximum asset protection advantage.

For Increased Confidentiality and Anonymity

Finally, it is possible to establish an offshore company and use nominee directors, for example. It is certainly possible to keep the names and details of the company's underlying principle out of key public documentation, thus ensuring maximum confidentiality and anonymity are achieved.

In conclusion, there are many valid reasons why you should consider an offshore IBC formation. Please note, however, that not everyone's circumstances mean they can benefit from one. It is imperative to take professional advice before incorporation to ensure your actions are legal, and the jurisdiction you have chosen is well regulated and respected.

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