Role of International business company in asset protection and tax avoidance
Offshore business is one that is incorporated in some tax haven jurisdiction, outside the residence country of the owner. Offshore companies are used for overseas business incorporation, offshore banking, international trade, reducing tax liabilities and for assets protection.
An IBC –
International business company is one popular type of offshore incorporation. International Business Company is a private company that can be engaged in any kind of business activity. These companies can hold a bank account, can involve in transactions worldwide and can operate business from anywhere.
IBC is incorporated for some basic purposes :
Asset Protection – An IBC ensure full asset protection to the client through offshore banking. Offshore banks never disclose asset information of any client outside the bank. In fact, its a crime to provide information to some one who does not mean to IBC owner or anyone outside the bank. Contrarily , the IBC owner has 100% control over his asset. Asset protection is also called debtor creditor law. Asset protection refers to set of legal techniques through which protects assets of individuals from unfriendly individuals, businesses and government departments. Without proper asset protection, a life of a person or a business could be ruined in a court. Tax avoidance : This term implies that IBC owner has arranged his business in the way that he is either free from taxation or bear less burden. Tax avoidance is a legal activity and different from tax evasion. Tax evasion is an illegal activity done by persons who wants tax relaxation on some illegal property using unlawful manners. Estate Planning - Family and Protective Trusts for accumulation of investment income and longterm benefits for beneficiaries on a favorable tax basis Confidentiality – All information about company owner is kept private. It is never exposed to any of owner's unwilling person. Other than memorandum and articles of business associations , no information is published in public records.
There are many offshore jurisdictions that attracts investors to invest in business following their legal system. Characteristics of an International Business Company vary by jurisdiction and usually will include : rapid IBC formation, low operating costs, minimal documentation and no reporting requirements, exemption from local taxes and stamp duty, preservation of confidentiality of the beneficial owner , wide corporate powers to engage in any businesses activity and the ability to issue shares in To incorporate an IBC, owner has to choose a shareholder and a director. Shareholder and director can be the same person with any nationality. IBC owner can have Nominee Director for his business. Nominee directors handles same responsibilities as director. With
technology advancement and internet facility, owner can operate his company from
anywhere in the world securely and privately. Therefore an IBC allows people to hold assets with their name, safe in secure financial center and allows 100% control over their assets. Under IBC laws, every offshore country takes privacy of owner and his business as a serious issue. Read More: http://www.act-offshore.com/international-business-company/