Setting Up An International Business Company (IBC)

We live in a dangerous world of increasing litigation. It’s time to consider your future, and the future of your family and your business. Putting assets into trust has long a favoured method of securing your assets such as, Company shares, property, cash, jewellery, boats, cars, planes etc, however as many of us have found out at a cost, using a trust can also be fraught with problems. The main problem With forming a trust is filling the position of the most essential party to the Trust, the trustee. In reality the trustee’s main duty is to work as of the Trust. How to protect your personal and business assets using an International Business Company and Asset Protection Trust?Asset Protection is essential to protect yourself against litigation for claims made against

businesses and professionals such as Doctors, Dentists, Cosmetic Surgeon, Accountants,
Lawyers and claims for damages against you as an individual or as a Director of a
Company. Ambulance chasing law firms who offer their services on ‘fee upon success’ basis is fuelling a huge increase in legal actions against anyone with assets.

Over the years an ever increasing number of entrepreneurs have developed good
businesses only to go bankrupt time and time again, mainly due to matters outside of their
control, such as interest rate increases. So how can people protect their personal and
business assets? The answer is the formation of an IBC (International Business Company)
— very often referred to as an SPV (Special Purpose Vehicle)
Recently we have engaged with a firm (AMCL) who offer the service of setting up
trusts/IBCs. They have been in business for 24 years and as such, they have a great deal
of expertise and experience to offer our clients. AMCL have always made it clear that they
are not in the ‘tax avoidance business’. They encourage clients to take maximum benefit
from the IBC Company (wrongly termed, offshore company) whilst remaining personally
tax compliant.

What Is An IBC Company?

IJnder the 1983 International Business Companies Act (IBC), an IBC Company can trade across international borders free of corporation tax and any local taxes such as Value Added Tax (VAT) in Europe. An IBC Company cannot trade in its home jurisdiction tax free, rather taxes (if applicable) are due in the home jurisdiction they will be charged at local rates.

Tax

As a rule, personal tax is due to be paid by the beneficial owner of the IBC Company on his or her personal profits earned as the beneficial owner of the Company. For example; I-JK clients can legally trade via their IBC Company, but are required by Her Majesty’s Revenue & Custom (HMRC) to pay taxes by self-declaration at the end of each tax year. We are not able to comment fully on taxation rules in other countries, but the general rule is the same in many countries, especially in Europe. Of course, if you are resident in a totally tax-free country, no personal taxes will be due. The clear advantage of using an IBC Company is the Company is free of Corporation Tax and local taxes such as VAT in Europe. We suggest you speak to a qualified accountant in your home jurisdiction if you are unclear of your tax liabilities or your tax affairs are complicated. The trust service company (AMCL) have several I-JK based accountants whom they work with on a regular basis. If you need help in this area, do not hesitate to contact us — we will gladly make the introduction. They make it clear to clients that they are not qualified to give tax advice, but they are of course aware of the general requirements as outlined above.

Bank Accounts

The trust service company whom we are engaged (AMCL) are licensed to a number of
International Banks and can provide Bank accounts for your new or existing I-JK or
International Company, with pre-approval before their fees are paid.

 

Choosing The Right Company Jurisdiction For Your Needs

Throughout the many years their trust service firm have been in business, they have worked in most of the worlds offshore jurisdictions, however today they work mostly in what they consider the best jurisdictions available. Many IBC Company jurisdictions have been tainted by bad so called ‘tax haven’ practices which have attracted the wrong sort of client to their shores. This includes many of the I-JK Crown Dependency countries. They favour certain jurisdictions located in different regions ranging from the LJAE, South America and Europe. Their recommended Company jurisdictions are born from many years of experience as Company Service Providers to suit every need and budget.

Bank Account Pre-Approval Service

Many clients tell them that they have purchased IBC Companies from othr organisations who failed to arrange a bank account for the proposed company. This is why they have introduced their bank account pre-approval service 4 years ago. The process is fast and efficient. After an initial application by email or telephone to their Company, they will send you a simple and clear form to complete and return to us with a copy of your passport. They ask you to view this application form as just a document of discussion between you and them. Once they have received the completed forms, they will apply to one of the banks they are licensed to for pre-approval. It is only after they have received approval from the bank that their fees are paid. This is a complete safeguard to protect our new clients. Many clients go for the cheapest option from some company on the internet; it’s usually a bad decision. If you feel that you could benefit from an IBC Company, please contact us and we will be happy to refer you to AMCL. Please note that we are acting as a referral service to AMCL so we won’t be involved in the intricacies of setting up an IBC company. This will be done between you and AMCL whom we are confident will be able to assist you.

 

3 thoughts on “Setting Up An International Business Company (IBC)”

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