Limitation on International Business Company ("IBC")

 

Non Resident Domestic Corporation ("NRDC") or Internatinal Business Company ("IBC") or International Exempted Company ("IC" or "ExCo") is core in offshore company operation. An IBC enjoys exempt status in all kinds of taxes and stamp duties in the country of incorporation. Careful structured offshore company may help the full tax exemption in the country of operations as offshore income.

A typical IBC can -

• Carry on business anywhere except for its jurisdiction of incorporation;
• Acquire land or property anywhere in the world;
• Hold shares of other company (even incorporated in its jurisdiction of incorporation);
• Hold meetings of its directors or members anywhere in the world;
• Maintain corporate bank accounts anywhere;
• Issue bearer shares (subject to the availability in the jurisdiction of incorporation);
• Registers of Beneficiary, directors and members are Not listed in public records;
• No resident director requirement (depends on rules in different jurisdictions);
• No annual return and/or audited accounts required for filing.

However, an IBC can NOT (subject to the availability of specific licence) -

• Have business transactions with persons resident in its country;
• Provide banking, insurance, trust, mutual funds or reinsurance services or other specific services as regulated in its country;
• Share its registered office.

Our aim is to provide a comprehensive service to our clients in Hong Kong and offshore operations. If you find above helpful, please free to contact us.