International Business Corporations (IBC) -
An International Business Corporation is an offshore
entity with a registered office and Director, which
generally does not have a real physical operation in
the country in which it is registered. An IBC in most
cases must be owned or controlled by non-residents and
generally cannot carry on any local business or invest
in local property or securities. IBC's operate internationally,
investing in stocks, bonds, commodities and real estate.
They are often used as holding or trading companies,
or combined with trusts in asset protection and investment
The IBC is widely considered the most flexible and
efficient vehicle for offshore investments and asset
No, or very low, taxation
Quick formation and low fees
Confidentiality of ownership and directors
No or low minimum capital requirement.
No residence requirements.
Limited liability of owners
No auditing or filing of annual returns
No foreign exchange controls
Bearer shares and registered shares permitted.
An IBC must have a local registered office, typically
through a professional corporate services provider.
IBCs are permitted to engage in certain activities,
including opening local bank accounts, holding
meetings, retaining certain services, preparing and keeping
books, without being considered to be carrying on local
business. IBCís are typically not allowed to operate banking,
insurance, reinsurance and trusteeship services.
Limited Liability Companies (LLC) - The
limited liability company is an offshore entity with a
registered office and members who may participate in the
management of the company. The company is managed
pursuant to its Articles of Organization which are
usually very simple allowing for great flexibility.
Commonly included in the Articles are:
the last date on which the LLC is to be dissolved,
name and address of registered agent;
whether the company is to be managed by managers
exclusive of members or by all the members in their
capacity as members;
that the company is authorized to conduct any
In addition there may be an operating agreement which
is essentially a contract between members as to how the
company will operate.
The LLC is gaining in popularity as it is becoming
better known and understood by those familiar with the
no personal liability exposure to owners;
no limit on the number of members;
no stock limitations and can issue preferred
interests analogous to preferred stock of
no corporate tax, income tax, withholding tax,
stamp tax, asset tax or other form of taxation;
members may be natural persons or other entities
of any nationality and do not file annual or other
members interests may be assigned unless
restricted in the operating agreement;
management can be by members or managers
designated by members and may assume any titles;
company records may be located any where in the