A thorough understanding and sufficient on-hand information is essential in making business decision. As a result, we list out some common enquiries regarding offshore incorporation as follows:
 
What does it mean by "offshore company"?
 
"Offshore company" is one that established in a jurisdiction other than the jurisdiction in which your customer is usually domiciled. But in general understanding, "offshore company" is used to describe company that established in low or no-tax jurisdiction with special legislation to attract business from other countries.
     
Why we go offshore?
 

The reasons for going offshore mainly due to the following reasons:
 

Reduced or even exempted taxation
 

Free remittance of profits and capital
 

Access low costs area which enhance higher yields and returns
 

Government cooperation
 

Political stability
 

Security of property rights
 

Fewer restrictions
 

The availability of complicated banking services and privacy
 

Exchange convertibility
 

Foreign investment inducement
 

 

  
What are the typical uses of offshore comapnies?
 

International trading
 

Investment holdings
 

Financing
 

Entertainment and professional services
 

patents, royalties and copyrights
 

Insurance
 

Acquisition and holdings of real estate, shipping and yacht owning
 

Expatriate personnel
 
What is "IBC"?
 

"IBC" refers to International Business Company or International Business Corporation. An "IBC" is one of the offshore companies which is a legal entity incorporated in a tax haven which is free from all local taxes, (except small fixed annual fees). A company can incorporate as an ¡§IBC¡¨ providing that it DOES NOT conduct any of following businesses:
 

with residents in the jurisdiction
 

in any banking or trust industry, unless it is licensed under the Banks and Trust Companies Act 1990
 

in company management, unless it is licensed under the Company Management Act, 1990
 

in providing the registered office or the registered agent for companies incorporated in the jurisdiction
 

in insurance and reinsurance companies, insurance agent or broker, unless it is licensed under an enactment authorizing it to carry on that business
 

in owning and interest of real property in the jurisdiction other than a lease of property for office use
     
What are the differences among an offshore company, offshore corporation and "IBC"?

There is no difference in between them since they are all regarded as offshore legal entities. But they are only called differently under different jurisdiction. They are also called as non-resident company or corporation in some other countries.
 
Why should we incorporate as "IBC" among the others?
 

Comparison to other types of offshore companies, ¡§IBC¡¨ possesses some attractive features and some of them are as follows:
 

exemption from taxation on any business activity or transaction conducted outside the jurisdiction (except the small annual fixed fee paid to government)
 

complete business privacy and confidentiality
 

speedy incorporation procedures / simple ongoing administration
 

only one director is needed
 

neither the directors nor the officers are needed to be shareholders, and they can be either corporate entities or natural persons
 

the shareholders, directors, and officers may be of any nationality and residents of any country
 

no need to have annual general meeting of shareholders or directors, and the meeting can be held in any place
 

no need to disclose beneficial owners to any government or other authority
 

no need to file annual returns or financial statements
 
What is the procedure in forming an "IBC"?

An "IBC" should be incorporated by a registered agent, like us, IBC Corporate Services Limited; the agent will then subscribe your customer¡¦s application to the Memorandum and Articles of Association in the presence of a witness. Finally, register with the Registrar of Companies by submitting three copies and requisite fee.