The IBC is fully termed as an International Business Corporation (also known as international business companies or offshore company). A lot of people sees the biggest advantage of any IBC is because of its tax exemption, however this depends on what you use it for, and also depending on the jurisdiction laws of their local authorities.
Most jurisdictions try to maintain secrecy laws so that they can defend the privacy and confidentiality (e.g., Saint Vincent) of the registered corporations. The IBC like any onshore company registered in the jurisdiction, they share the same asset protection laws despite most of the IBCs’ business activities are carried out internationally. Another advantage of running an IBC is also because of its low or tax exemptions that could possibly benefit the growing entities. At the end of 2018, Saint Vincent revised its laws to approve new international corporate applications under the BC (Business Company) structure, while the British Virgin Islands (BVI) and Seychelles maintained its foreign-owned corporate structures such as the IBC, and still being the most preferred options for most companies.
Through experience, we discovered that naming a company to sound like a financial related firm require lots of approval, most countries would want you to seek regulatory approval before approving your entity. For example, you would like to start an “XXX asset management company” in mainland China, you will be required to go through deeper KYC, provide Net Tangible Asset proof, Source of Funds, and etc to clear incorporation requirements. You must understand the differences in the audit system, the regulatory framework in order to move forward on getting the company incorporated. However, when you incorporate a Saint Vincent company, getting your entity termed as an Asset Management entity, or a Capital Management entity, it becomes something that could come with least hassle.
Moreover, for a foreign owned Business Company in Saint Vincent, the company enjoys a long period of tax exemption, and other than fund management, banking, gaming and insurance being strictly regulated, the company in the jurisdiction can operate a wide array of businesses. Required documents are simple, requiring only one director and one shareholder, and the directors and shareholders can be a single person. There is no obligation in the annual general meeting of shareholders, as it can be done remotely, and the confidentiality of the members of the company is very strong.
If you are interested in starting your own BVI IBC, Seychelles IBC, St Vincent BC, please contact us.