FAQ's about OFFSHORE IBC
 

1.What is an offshore IBC and what do your clients use their offshore IBC for?

Offshore IBC stands for International Business Company, which can only trade outside the country of incorporation or with the another offshore IBC in the country of incorporation. The majority of our clients are individuals, but we also provide services to corporate clients. The clients use the offshore IBC company for international trading and investment; for ownership of real property and land; for ownership of intellectual property, licensing and franchising; for the employment of staff working on overseas assignments; for personal service by individuals working overseas for more efficient tax planning; for more efficient inter-group treasury management; for asset protection and offshore e-business. The use of the offshore IBC company can only be limited by imagination.

2. How long does it take to set up an offshore IBC?

Once we have received the payment and all the required information from our clients we dispatch the documents by courier post (FedEx or DHL): From Dominica, the same day or not later than the following work day; from Seychelles, BVI and Belize in three working days; from Panama, Gibraltar and USA in eight working days; and the UK in five working days.

3. What proof of identity must clients provide you with in order to start the offshore incorporation or to buy an offshore company (shelf IBC)?

To establish the identity, a client must provide a clear copy (by means of fax or e-mail) of one of the following documents containing a photograph: current valid passport or National ID Card or current drivers' license or social security card. The document containing the information regarding your identity is in strict confidence. It is useful to know that Dominica and most of the other jurisdictions have not got an open Register of Directors or Shareholders and in all jurisdictions confidentiality can be kept by using nominees.

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4. Do I have to fill in any complicated forms?

There are no complicated forms for you to fill in. We offer a professional offshore service to our clients which ensures that we do the work of incorporation and recording initial changes to the structure of the company. This ensures speed and accuracy and compliance with corporate law.

5. Are your offshore services confidential?

We will not disclose any information concerning our clients without their prior written consent. However, this obligation of confidentiality is not applicable when a court order from the jurisdiction is made to disclose such information or if it is not in compliance with the laws of the countries.

6. Can you recommend the best offshore jurisdiction for incorporation?

We incorporate companies in the Caribbean (Dominica and BVI), in Central America (Belize and Panama) in Europe (Gibraltar) and in the Indian Ocean (Seychelles). We also offer LLC's in the USA and Limited Companies and Limited Liability Partnerships (LLP) in the UK. In our opinion, the offshore jurisdictions which we offer in the Caribbean, Central America, Europe and Indian Ocean make sense because they have the best legislation and opportunities for the offshore sector at present. More advisable now, is to incorporate in offshore tax haven Dominica, and for those clients who require two companies in different offshore jurisdictions or need some specific jurisdiction for any reason, we provide a choice.

7. How much does it cost to maintain an Offshore IBC Company each year?

We offer the lowest maintenance fees on the market. The cost for the second year and each year after for Dominica, Belize and Seychelles in USD 395 or USD 590 if nominee services are included. The price includes all fees including Government Fees. Our other jurisdictions which we offer all have low annual maintenance Costs. Check our page Our Offers & Fees for all the prices.

8. Can I get a refund if I change my mind after I have submitted the incorporation form and transferred the funds?

No. Once you have submitted your application for a company and paid for it the process is started immediately. Documents are prepared and filed and Government fees are paid.

9. In what banks do you open an offshore IBC's bank accounts? Do I still have to pay for this service if I decide to open an offshore company bank account myself?

 We offer two main packages, one package provides Nominee Services, and the other package does not provide Nominee Services. Both packages allow the option to open a bank account. The option is yours. If you opt for a bank account, you pay for the service; otherwise you do not pay for what you do not order.

We offer banks in the Caribbean including the main offshore bank in Dominica and others in St.Vincent and Antigua. We also offer very reliable banks in Europe (Latvia, Austria and Lithuania). We recommend these banks for offshore investments and trading.

We open company bank accounts in banks which provide a high level of privacy.

10. Do you set up Offshore Bank accounts as a separate offshore service?

No, we do not. We only assist our clients who used our offshore incorporation services with the setting up of the offshore IBC bank accounts.

11. What is the cost of setting up an Offshore Corporate Bank Account?

The costs of setting up the accounts depend upon the chosen location :

1. In Dominica, St.Vincent 250 USD, £ 160
2. In Europe (Latvia and Lithuania) 250 USD, £ 160. The Latvia bank will also deduct USD75 for supplying you with a secure electronic device for coded account access called DigiPass (you will receive it with incorporation documents kit and bank application forms from us).
3. In Austria 500 USD, £ 300
4. In USA (only for Seychelles IBC's) 500 USD, £ 300 
5. In BVI (only for BVI IBC's) 500 USD, £ 300 
6. In Seychelles (only for Seychelles IBC's) 250USD, £ 160

12. How long does it take to set up an offshore bank account and what are the procedures?

The time it takes to open an offshore bank account depends upon your location and how fast the courier service can deliver the paperwork to your destination. We will send you the application form to fill with your offshore company details. You have to fill the forms and attach the certified photo identity and send it to the bank. When the original forms are received by the bank, the account will be opened. Sometimes during the period between the offshore IBC incorporation and the receipt of such documents by the bank the client urgently requires the bank account. In these circumstances a temporary bank account can be opened. Such account can only be used to receive payments. When the original documents are received the same account will be converted into the permanent bank account.

13. What are the requirements to open an offshore bank account for an offshore IBC?

If you choose to take a package with an offshore bank account on your offshore IBC incorporation, we FedEx you the offshore IBC documents and the application forms from the bank. You have to attach to the filled forms (which are straight forward) a photocopy of your ID (Passport or Driving License) and send it back to the bank. The bank will activate your account upon the receipt of these documents. In addition to the above, you would need to provide two references on the signatory of the account if you decide to open an account in Dominica and USA. One of which should be a bankers reference, another - your employer or professional person (accountant, lawyer, etc) reference. The US bank would also accept two professional references if you have not got a bankers reference. In Europe (Latvia) no references will be required from you. Our reference would be sufficient to open the bank account there.

14. Is it possible to obtain a credit card from an offshore bank?

Yes. All banks that we suggest offer credit/debit card facilities for offshore IBC's.

15. Will my offshore IBC have to keep financial records at the registered office? 

There is no legal requirement to keep the financial records of the offshore IBC company with your registered agent. You can keep offshore IBC records anywhere you wish.

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16. Will my offshore IBC have to prepare and file audited accounts?

There is no legal requirement to file the accounts of IBC's or have an annual audit in the jurisdictions which we offer (Dominica, BVI, Belize, Panama and Seychelles).

Gibraltar non-resident companies have to file annual accounts with the Registry. Small companies are required to file a balance sheet and do not require an audit.

Medium and large companies i.e. (net turnover in excess of £ 4.8 million, balance sheet total in excess of £ 2.4 million and employees in excess of 50 persons) must file audited accounts.

The accounts do not relate to taxation, as all Gibraltar non-resident companies are tax exempt.

A UK limited company must file accounts annually. Audited accounts are only required when the annual turnover is in excess of £ 11.2 million, the assets are in excess of £ 5.6 million and the total number of employees is more than 250.

A UK LLP is required to file annual accounts. Audits are not required providing, the annual turnover is equal to or less than £ 1 million and the balance sheet total does not exceed £ 1.4 million.

A US LLC must file an annual form (1065) with the IRS. This is for information purposes only, as non resident aliens do not pay US taxes on income not derived from the US.

17. Is it possible to transfer the offshore IBC you registered to another offshore jurisdiction and re-domicile from another jurisdiction to Dominica, Seychelles and Panama?

Of course, you can do it without any problems. Dominica, Seychelles and Panama allow transfers of offshore IBCs in and out of the country. However, if you want to re-domicile your offshore IBC from another jurisdiction we recommend that you continue this company in Dominica. We can arrange it for you.

18. What can you say about the American offshore companies offered on the market?

There are no offshore companies in the USA. Companies offered on the market with the endings Corp., Corporation, Inc., Incorporation are not offshore companies whether they conduct business in or outside the US or have accounts in or outside the states. Only the legal entities known as Limited Liability Companies (LLC's), which are properly structured, and incorporated by foreigners and conduct their business activities outside the US, can be considered as tax exempt in the US. We are offering the two best states to incorporate, Oregon and Delaware.

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19. What is your professional opinion on the 100% anonymity and confidentiality offered by some companies/individuals on obtaining the debit/credit cards with an offshore bank on your behalf?

We are aware that some "offshore professionals" offer the opening of an offshore IBC account completely anonymously. In most instances it is a good way of attracting clients with such requirements. But at the very early stages they will ask for some form of identification. So in reality it provides a false sense of anonymity. In order to disguise the real ownership of the card you might decide to issue such a card in a company's name, but it can create a bigger problem when you come to purchase an expensive item. Usually an additional form of identity is required, which you will be unable to produce. But if you insist on it, you can apply for debit cards - Cirrus, Maestro, Visa and Electron without a name on it, but you still have to provide your identity to the bank. You would be able to draw the money from any cash machine anonymously. The bank in Europe (Latvia) issues such debit cards. The drawback to it is that you cannot use it over the Internet.

Another consideration against so called "100% anonymity" is that by doing that you expose your assets to the higher risk. There is a good chance of you being conned. And we do know that it has actually happened. The institutions that offer these services have a very shady reputation and are usually located in the jurisdictions which offer little or no protection to the private investor and have no control at all. You will not be able to produce evidence in court to prove that the money belongs to you as no documents of your identity were produced in the first place.

20. What are the procedures on how to re-domicile the existing offshore IBC to Dominica?

The laws in Dominica allow re-domiciliation. As a main requirement, the original country of incorporation should allow this to happen. At the moment, for example, we are doing a lot of this work for Bahamian IBC's due to the dramatic recent changes in the offshore legislation of the Bahamas.

You would also need to produce the following offshore IBC documents: prepare a Continuance application, which includes its existing Charter documents and all amendments; a decision of the Board of Directors to continue in the Commonwealth of Dominica. After the transfer, a corporation must adopt local bylaws (Memorandum and Articles of Association) to comply with Dominica Laws. The Certificate of Continuance will be issued by the Registrar after filing the above documents. Your offshore company is considered to be valid and existing from then on. Upon receipt of the legal opinion from Dominica you will have to apply in your original offshore jurisdiction for the company name to be struck off the Registry of the companies original domicile.

Unfortunately some countries do not allow re-domiciliation ( E.g. Jersey, Guernsey, Ireland, Bermuda). You might consider another option - straight incorporation of an offshore IBC in Dominica with the same name.

The timescale for offshore IBC formation is two working days after the receipt of all necessary documents.

The cost varies from 395 USD to 590 USD depending whether you use our nominee services or not.

21. What is asset protection?

It is a transfer of the ownership from an individual to a legal entity, like an offshore IBC company. That way you are no longer the owner of your assets and it becomes more difficult to be successful in suing you. But you are still in control of that company.

22. Can a person residing in his home country use offshore facilities?

There is nothing there to stop you from getting involved with offshore facilities.

23. Is it illegal to transfer funds and assets into an offshore jurisdiction?

There is nothing illegal about transferring your assets/funds offshore. No law prohibits that. It is your right to minimize your tax bills to the IRS/IR .You might be breaking the law by not disclosing the information to the tax authorities.

But there are different methods of reducing your tax liabilities by introducing an offshore entity into your business structure.

24. Is there any recommended threshold of money regarding when you should consider going offshore?

No. It is not a question of when to start dealing offshore, but how much money you can save if you do go ahead with it.

25. What is a nominee in context of an offshore IBC?

A nominee is a person who is nominated to fill the position, but who is not the real owner or director of the offshore IBC. In the offshore context it is used to preserve the identity of the real owners of the business (shareholders or directors). By using the power of attorney, the nominee director transfers all the powers to manage the business to a person whom the real owner can trust.

26. Is there any currency risk involved in keeping money in an offshore IBC?

No. You can keep your assets in the currency of your choice. There is no exchange control for offshore companies in Dominica, Seychelles, BVI, Gibraltar, Belize or Panama.

27. If I move my assets to an offshore IBC would it alert the Internal Revenue Service/Inland Revenue?

Moving assets to an offshore IBC is not illegal and does not attract special attention from the IRS/IR, if your activities are legal.

28. Is doing business through an offshore IBC one of the best methods to reduce taxes for individuals/companies?

By operating your business through an offshore structure (offshore IBC) the company can defer profits almost indefinitely by using management contracts, insurance, loans, re-invoicing (more appropriate for international trading activities), factoring your debts, etc. For individuals, the use of offshore facilities would reduce income tax, capital gains tax, inheritance tax, etc. You can defer taxes as well as protect your assets from possible litigation.

Do not hesitate to contact us in case you have not found the answer to your question!