International Business Company (IBC)

Also known as Offshore Company or Personal Investment Corporation (PIC).

A corporation formed (incorporated) under a Company Act of a tax haven, but not authorised to do business within that country of incorporation (i.e. an IBC formed in The Bahamas may do business anywhere in the world except The Bahamas). It is a company designed for foreign companies and individuals to the jurisdiction, in which it is registered, providing a maximum of privacy, combined with a comprehensive freedom from local taxation.

Common to all IBC's are the dedication to business use outside the incorporating jurisdiction, rapid formation, secrecy, broad powers, low cost, low to zero taxation and minimal filing and reporting requirements. An IBC pays governmental fees and domiciliary fees each year in order to remain registered. In some jurisdictions an additional tax-exempt charge payable.

Depending on the offshore financial secrecy jurisdiction, shareholders of the IBC may remain confidential through the use of bearer shares. Generally, the beneficial owner(s) will appoint resident officers and directors for the IBC, although the same person may act as the shareholder, board of directors, president, agent or as any other officer within the company. The beneficial owner may act as an agent of the IBC to purchase assets on its behalf. By this means, assets are held under a corporate name, thereby helping to protect the beneficial owner's privacy.