"WHAT IS AN IBC?" - An IBC is a company that is registered and based in an international center such as St. Vincent & the Grenadines.  The term "International Business Company" is used to describe it because it is formed in a jurisdiction that is outside one of the major industrialized countries, where there are certain benefits, including tax, privacy, financial and security benefits.  Please see our IBC F.A.Q. for more detailed information. When you form an IBC, you are generally in complete control of the assets of the IBC, in control of its bank accounts, and of all transactions done by the company. The income to the IBC is taxable immediately it is earned. This differs from income that you earn through shares purchased in a company in your homeland. The general rule for such shares is that you have a taxable event only when you receive distributions in the form of dividends.

However, in the case of the IBC, you are taxable even if you have not repatriated (i.e. brought home) any of the income. Although the provision of Bearer Shares could enable the owner of an IBC to conceal earnings through the IBC, it is evasion of taxes to fail to report and pay taxes in one's homeland and carries serious penalties.

Our business is to inform, however, and not to moralize. It is not our place to tell you how to conduct your business, but to tell you what the consequences may be for a certain course of action. Let it be said, however, that we are not in the business of assisting anyone in evading taxes.

One consequence of having an IBC and an account in the name of the IBC, is that Schedule B of the IRS form for US citizens, requires that one answer two pertinent questions. Do you own a bank account offshore? Do you have signature power over an offshore bank account? In general, anyone who has an IBC with one or more bank accounts should answer "Yes!" to both questions.

The only exception is when the bank account is in the name of an IBC that is owned by a trust.

Advantages of an IBC

		Simple and swift incorporation (within 48 hours)
		Requires only one incorporator
		Greater Flexibility
		Greater Asset Protection
		Greater accessibility to companies that prefer to deal with offshore entities
		Properly structured, an IBC can provide tax-free compounding
		May engage in any activity that is not illegal in St. Vincent & the Grenadines
		Shares may be issued as registered shares or bearer shares, may be par value or no par value, voting or non-voting
		Share capital may be expressed in any currency
		An IBC may be administered from any place in the world and its books, records and seal may be kept outside of St. Vincent & the Grenadines
		Only one Director required
		The names of directors, officers and shareholders are not disclosed on any public register
		IBC's are exempt from tax and stamp duties for twenty years from incorporation
		No foreign exchange controls are imposed upon IBC's
		Limited Liability of shareholders
		No restrictions on percentage or ownership of shares
		No investment restrictions except that an IBC cannot purchase real property in St. Vincent and   the Grenadines
		No restrictions on borrowing or distribution of dividends except those provided in the Articles of Incorporation