IBC or International Business Company or as it is also called International Business Corporation is basically an offshore company that is usually incorporated under the laws of some jurisdictions worldwide as a tax neutral company, meaning that it is not subject to tax in the country of incorporation. It is also limited in the direct business activities it may engage in while operating in the context of the jurisdiction in which it is incorporated.

Importance and main functions of IBC

Often IBC features can vary by jurisdiction, but typically include confidentiality of business records, ability to issue shares, provision of a local registered agent or office, and exemption from local corporate income tax as the majority of offshore Jurisdictions that removed or are processing removal exempt IBC from local taxation while reducing corporate income tax to zero to avoid hurting the entire offshore finance industry.

Such companies are generally formed for offshore banking, international investment, asset protection, real estate and intellectual property ownership, and other business activities related to international trade.

A list of jurisdictions offering IBC as a business structure

As stated in Streber Weekly, there are many jurisdictions that offer IBC as a business structure. The list of such jurisdictions is quite long: Antigua and Barbuda, Anguilla, Barbados, Bahamas, Belize, Brunei, British Virgin Islands or BVI, Cook Islands, Comoros, Dominica, Grenada, Gambia, Mauritius, Marshall Islands, Monsterrat, Nauru, Saint Lucia, Samoa, St. Kitts and Nevis, St. Vincent and the Grenadines, Seychelles and Vanuatu. This list includes most jurisdictions without considering their worldwide reputation. Some popular offshore jurisdictions not mentioned previously offer territorial taxation and other tax incentives in lieu of IBCs. These business structures can operate as Exempt Corporations, Free Zone Corporations, or Non-Resident Corporations, etc. without having the ease of IBC corporations: Panama, Hong Kong, Cayman Islands, Turks and Caicos Islands (TCI), United Arab Emirates (UAE), Bermuda.

For example, the jurisdiction of Panama is generally appropriate for International Foundation or IBC in terms of asset protection. The jurisdiction of Hong Kong in general is also convenient for international trade due to the favorable tax system as no withholding tax, capital gains tax, capital gains tax, VAT and other types of taxes are levied.

The most respected jurisdictions for IBCs

The British Virgin Islands (BVI) is recognized as the world's leading offshore business center with more than 450,000 operating companies registered on its territory. He is often referred to as the grandfather of all IBCs. International international business corporations have a fairly good reputation among other jurisdictions of this type due to the ability to transfer domicile and privacy of ownership for assets collected within the corporation. In general, the BVI provide flexible, cost-effective and fast international offshore company formation services.

Seychelles can be alternatives to BVI offshore companies as this jurisdiction also offers ease of administration, simplicity and privacy. Additionally, with more than 175,000 companies registered there, IBC is the most common type of company formed on islands. The IBCs of this jurisdiction are commonly used as consulting and staffing services firms, as well as holding companies for stocks, real estate, and stocks.

The Bahamas is one of the oldest offshore jurisdictions to be considered classic like the previously mentioned BVI as it is independent, politically stable, has an improving reputation and is gambling friendly.

Saint Kitts and Nevis has a good reputation but is also politically stable and has an average to low cost. However, this jurisdiction is more popular for its limited liability companies (LLC).

In recent years, tax residence issues have become very important when dealing with tax declarations for the government, banks and tax offices. Obtaining tax resident status in the UAE has grown in popularity for several reasons:

The UAE is set to join the Common Reporting Standard (CRS) later than most other countries — starting from 2018.
There are generally no taxes for corporate and private residents in the UAE on trading income, dividends, investments, bonds, etc.
The UAE offers vast opportunities for international businesses; companies are easy to incorporate and can be managed effectively.

Confiduss' professional team can help you acquire tax residence in the UAE, with all the associated legal benefits. Saving you time and money is our number-one priority, so call us now to get a free consultation or apply for UAE tax residence.

Who can apply for tax resident status in the UAE?
A UAE tax residence certificate can be issued to an onshore company or a private individual, but you will need to become a UAE resident first. This can be achieved in one of the following ways:

You can register a company in your name. There are no requirements for this company to participate in active trading; basically, its main purpose is to support your tax residence status. This status is maintained on the basis of the onshore company, which must be renewed yearly.
You can buy real estate in the UAE worth over one million dirhams. The owner(s) must be a single private individual or a married couple. If there is more than one owner (or if the marriage of the couple is not officially registered), than each person must invest one million dirhams in the property. Our package offer includes applications for a residence visa with the option of annual renewal.

UAE onshore companies
Company incorporation in the UAE is fairly straightforward, and proven to be a great vehicle for international trading as well as for holding dividends and interest. A company set up for tax residence purposes cannot just be a shell, and you must maintain some turnover on the corporate bank account.

Note that only onshore free-zone companies in the UAE can be considered for tax residence purposes. Therefore, Ras Al Khaimah companies will not be of use in this respect.

If you decide to set up your onshore company in a free zone, consider the Umm al-Quwain free zone: unlike many others, it has no requirements for share capital or for statutory accounting and audit. As in all onshore UAE free zones, your company will require a special licence, depending on the type of activity you plan to carry out. An onshore company must also have a rented office — this service is included in our company package.

Obtaining a tax residence certificate: the process
UAE tax residence certificate acquisition can be separated into the following major steps:

set up an onshore company
obtain a residence visa
open a private bank account
receive the tax residence certificate
As soon as you have been granted tax resident status in the UAE, you can apply for the tax residence certificate. The certificate is issued either within six or nine months from the date on which you received your residence visa. You will be asked to present your private bank statement for the last six or nine months. Your bank account must be active, with a positive balance, and transactions must pass through the account regularly. The immigration authorities will also check whether you have entered the UAE at least three or four times during the last six months using your residence visa.

Note that the tax residence certificate is only valid if you have a UAE residence visa. It is issued for a period of one year and renewed annually. However, you do not have to order new certificate each year if you do not need one.

The primary benefit of having a business power of attorney is that you have the security of a contingency plan in the event the business owner or other authorized representative is unable to perform their duties. Authorizing a representative to act on their behalf prepares the company for unexpected situations and allows important business decisions to be made in a timely manner. If the business owner has not granted anyone legal power of attorney, there is always a risk that at some point they will no longer be able to make important business decisions or carry out essential transactions, which can lead to enormous damage to the company and its reputation. Not having an authorized representative can result in not paying salaries on time, not servicing business loans or mortgages, not paying third-party vendors, and losing potential contracts.

The benefit of being able to authorize someone to act on behalf of the account holder comes with the peace of mind that you can trust the authorized agent with access to your business account. Therefore, you are strongly advised to think carefully before granting someone a POA and giving him or her access to a bank account and the ability to make important business decisions. The person you nominate as an agent has unsupervised access to Company funds, which could potentially increase security risks if the nominee acts in interests other than those of the Company.

The Maldives is considered one large nation due to its total area. Its total land area is 298 km² (about 115 mi²). The continental shelf of the Maldives is about 34,538 km² (about 13,335 mi²). Maldives is in Asia. Asia is the largest and most populous continent on earth. Asian countries include Russia, China, Japan, Hong Kong, and North and South Korea, among others. The Maldives is not a landlocked country. It means it is bounded by at least one major body of water. The average altitude range of the Maldives is 2 m (3 ft).

Neighbors
The total length of land borders of Maldives is 0 kilometers (~0 miles). The Maldives has no land borders and therefore no neighboring countries in the traditional sense of the word.

Cities
The capital of the Maldives is Male. The largest city in the Maldives is Male.

Elevation
The average altitude range of the Maldives is 2 m (3 ft). The highest point in the Maldives is an unnamed site with an official height of 2.4 m (7 ft). The deepest point of the Maldives is the Indian Ocean. The difference in elevation between the highest (an unnamed location) and lowest (Indian Ocean) point in the Maldives is 2.4 m (2 ft).

Area
The total land area of ​​the Maldives is 298 km² (about 115 mi²). and the total Exclusive Economic Zone (EEZ) is 923,322 km² (~356,495 mi²). The continental shelf of the Maldives is about 34,538 km² (about 13,335 mi²). Including the landmass and the EEZ, the total area of ​​the Maldives is approximately 923,620 km² (~356,610 mi²). The Maldives is considered one large nation due to its total area.

Forest and farmland
10 km² of the territory of the Maldives is covered with forests, and forest areas account for 3% of the country's total land area. There are 40 km² of arable land in the Maldives, which accounts for 13% of the country's total area.