Frequently Asked Questions

Ans: An “IBC” is short for International Business Company. Such a company is formed and registered in a country other than a major industrialized nation. It is considered a separate legal person and allows you to conduct business that is international in scope without the restrictions often found in a developed country.
Ans: The assets in an IBC will pass to a relative according to the laws of inheritance in the jurisdiction where the IBC is formed, if you die without making advance provisions. To prevent this, you should ask an attorney to prepare a minute, adopted at a meeting of the owners of the IBC, that appoints your chosen successor in your stead, in the event of your death and lodge a copy of this with the Registered Agent.
Ans: You may show ownership either with Registered Shares or Bearer Shares. The person who has title to Bearer Shares is the person who has possession. Most jurisdictions have ceased to issue Bearer Shares. St. Vincent & the Grenadines still issues such shares, but the Registered Agent is required to hold these in safe keeping for the client. A copy of the share certificate is sent to the client.
Ans: When your IBC is registered, you will receive the following:
Articles of Incorporation
Certificate of Incorporation
Tax Exempt Certificate
Certificate of Good Standing
Power of Attorney
Share Certificate(s)

These documents can be apostilled if required in your country (many European countries require this to be done).

The cost of mailing the documents to you is not included in the setup cost. The cost of sending the documents to you by courier is $80 USD.

Ans: You must submit a signed application form for each beneficial owner and office of the company (see application form), a picture ID, usually a copy of your passport or your driver’s license.
Ans: The IBC documents are usually prepared and registered by a licensed professional called “A Registered Agent”. Such an agent is usually an attorney, or a person trained as one, an accountant or a professional who is of high character and with the knowledge and ability to conduct this business.

The office of the Registered Agent is called “The Registered Office”. This will be the local address of your IBC in the jurisdiction that you choose.

Ans: You can choose any name you wish. We simply check out its availability and inform you. Some people use the names of birds, flowers, plants, place names etc. You can create a name out of thin air if you choose. In general, you should choose a name that can be easily remembered, if it is to be used in a business whose name clients will need to remember. It is sometimes a good idea to choose a name that starts with a letter that is high in the alphabet.

Each name must carry a suffix such as “Limited”, “Ltd.”, “Incorporated”, “Inc “, “S.A.”, “GmBH”, “AG” “Corporation” or “Corp. ”

We can provide you with a list of available names that we have checked with the Authority, from which you can choose a name for your IBC.

Ans: You can own a bank account in any country of the world and make deposits and withdrawals at will, using either bank wires, bank drafts or credit cards.

You can own an offshore credit card with a paper trail that goes back to the offshore jurisdiction. Your home government is usually most interested in the big-ticket items that you purchase with such cards.

You can invest in stocks, bonds, mutual funds, certificates of deposit, real estate, gold, etc., in any part of the world.

You can handle all the international marketing of a product manufactured at home base though an IBC and reduce operational costs.

You can handle all advertising of a business in your domicile from an offshore IBC and improve your profit margins. You can operate a consulting or management business from an IBC.

You can use an IBC to apply for a banking license or an insurance license. The latter is especially suitable for professionals who wish to reduce the high insurance premiums associated with some professions such as the practice of medicine. You can also use an IBC to apply for a mutual fund license and own your own mutual fund.

Ans: An IBC can help you defer payment of taxes if your business is properly structured and in some instances it may help you to reduce taxes. It should not be viewed primarily as a tax saving vehicle, but rather as one that provides you with privacy and asset protection. We recommend that you pay your taxes and not be forced to enjoy it in a small room controlled by the judicial system in your country. It is best to be transparent in all your business dealings through an IBC.
Ans: Owning an IBC will bring you several benefits, including the following:

  1. Privacy – It protects your business from the snooping eyes of nosy neighbours.
  2. Asset Protection – If you live in a country where people are quick to sue, having an IBC will protect you from frivolous lawsuits and from creditors who are trying to relieve you of your assets. It could protect you from being taken to the cleaners by a spouse in the event of a divorce. It is insurance against predators of all kind.
  3. Investment Opportunities – An IBC is excellent for investment purposes. Many of the best investments are available only outside of the developed countries. Some of these investments will not accept funds from citizens of certain countries. Since an IBC is a separate person, domiciled in an offshore location, you can invest through such a company and be better able to diversify your investments worldwide. As industrialized countries develop more and more repressive and controlling laws, the flood of investment money going offshore will become a veritable torrent.
  4. Family Asset Protection – An IBC can be used with one or more offshore trusts to protect family assets, saving the money usually associated with probate and inheritance taxes, and to reduce or eliminate capital gains taxes.
Ans: Absolutely not. Some governments give the impression that they are frowned upon because they fear that they could lose taxes earned by such companies, but there is nothing illegal about an IBC. If your country requires payment of taxes on income earned overseas and you do not pay these taxes, this is called tax evasion and could carry a heavy penalty in your own country. The wealthy have used these vehicles for many years. It is only since common people have begun to use them that they seemed to be frowned upon. You cannot get into trouble with the authorities in your country for just owning an IBC. Your problems only begin if you choose not to pay your taxes and observe the reporting requirements of your country.
Ans: Contact Abaco Ltd at info@abacoltd.com