If you have looked into offshore banking, you have undoubtedly come up on the term International Business Company , or IBC. An offshore IBC is an offshore company that has been set up under the laws of a particular country as a company that is normally exempt from local taxes and isn't permitted to engage in any business practices in the country in which it has been incorporated with the exception of Panama.

IBC For Privacy Protection

Laws and regulations governing offshore IBCs differ widely from country to country but there are some characteristics that all IBCs typically share. Most IBCs will protect the identity of the owner of the offshore IBC by keeping the name private. This allows for the owner to conduct confidential business. Offshore IBCs also give owners the ability to issue stock in the company in either bearer or registered form. This allows the owner to raise quick cash. Offshore IBCs also allow the company to perform a wide variety of business tasks.

Offshore IBCs are usually set up in countries that are known as tax havens such as the British Virgin Islands, Nevis, Belize, Seychelles, Panama or Switzerland. They are usually set up  to conduct trade and investments across international borders. An IBC can protect your money while helping it grow by taking advantage favorable tax laws in the offshore jurisdiction where they are incorporated.

What Can an IBC Own

IBCs can also be used to hold real estate and intellectual property as well as bank accounts and personal service businesses. An IBC can also own assets and keep them safe in a secure offshore center. The IBC also allows the owner to retain control of all of the assets and to keep them extremely private. In most cases it is illegal for a banking official to reveal the name of the owner of an IBC. The records are never made public as U.S. corporation papers are (although public registries in each country are typically searchable). Privacy is taken very seriously in countries with International Business Company incorporation laws.

Costs Associated With Forming an IBC

Setting up an International Business Company doesn't have to be expensive. It can cost as little as $1000 to incorporate in Panama, Seychelles or Belize, in addition to annual fees you will need to pay to keep your IBC registered. It can be a little more expensive to operate an IBC in other countries, including the British Virgin Islands and Gilbraltar. After your first year, annual fees can range from $400 to $700. Your total cost will depend on the currency that you select for you IBC.

Before setting up an International Business Company make sure that you investigate all of the options thoroughly. You may find that it is not a cost effective way to do business. You may also want to investigate the laws in place in various countries before selecting the final location of your IBC so that you maximize your return while minimizing your risk. Different countries will have different fees associated with IBCs and it is only by thoroughly researching each option that you can make the best decision for you and your money.