In this article, we’re answering “What is an IBC?” But, instead of keeping you waiting, an IBC is an International Business Company.
For many years, IBCs were associated with fast and loose corporate registration through bearer shares, backwater structuring hubs, and dodgy offshore providers. But, that is certainly no longer the case.
In this article, we discuss where IBCs are incorporated, how they are used, and the benefits that most people can unlock with an IBC.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
What Is an IBC?
IBC refers to an International Business Company, which is a corporate entity registered in an offshore jurisdiction or offshore financial center. IBCs offer a range of benefits, including tax benefits, asset protection, minimal reporting requirements, and minimal disclosure requirements.
IBCs are a popular corporate structure for anyone looking at tax planning. That said, the jurisdiction where an IBC operates is also important. Depending on the business activities and regulatory environment, IBCs may face taxation locally regardless of where incorporation was completed.
Importantly, while IBCs can offer benefits, they can also be expensive to set up and expensive to maintain. In many cases, when dealing outside of the country of registration, banks and service providers require IBCs to provide verified documents from a notary public to support commercial transactions.
Additionally, the specific benefits that offshore lawyers and service providers promote are not always applicable to everyone. Instead, each potential corporate structure needs to be carefully assessed in the context of each individual.
In other words, individuals should be looking for an IBC that directly supports their citizenship, residency, and broader tax planning strategy. Likewise, individuals should consider the ongoing reporting and disclosure requirements that they may have to their home country if they own or control a company outside of their home country.
Example of IBC Banking Services
The specific banking services that are offered to each IBC client will depend on their specific banking requirements, deposit and account balance, activities, and timelines.
Likewise, whether an IBC can access banking, financial, or other commercial services in foreign countries depends on a wide range of factors.
That said, IBCs are generally used as offshore holding companies or as corporate entities to support activities across a number of jurisdictions. Considering these two areas of activities, the IBC banking services that banks will typically offer include the following:
- Private banking
- Wealth management
- Trust and fiduciary services
- Corporate banking
- Trade finance
- Foreign exchange
- Basic banking services
- Offshore debit and credit cards
Again, the specific services each bank will offer clients are different. From the bank perspective, this is due to different capabilities, different client appetites, and different areas of expertise. As for the client, banks will only offer them services that make sense for the financial position of their IBC and their banking requirements.
Do You Want Our Free Non-Resident Banking Guide?
Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:
Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into what an IBC is. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Does an IBC Stand For?
IBC stands for International Business Company, which is a type of offshore corporate structure incorporated in an offshore financial center. IBCs can help their owners unlock a wide range of benefits including tax advantages, enhanced privacy, asset protection, and much more.
What Does IBC Stand For in Business?
In business, IBC stands for International Business Company. When a business owner decides to incorporate an IBC, it is usually because the business operates across a wide range of jurisdictions or requires access to a wide range of foreign currency. Alternatively, IBCs may also be used in business in order to benefit from specific tax treaties and related advantages.
What Company Is an IBC?
An IBC is an offshore corporate entity registered in an offshore jurisdiction or an offshore financial center. IBCs typically offer tax advantages, enhanced privacy, asset protection, and a strong foundation for international business. That said, certain IBCs are better placed to access international banking than others. This is especially true when comparing long-standing offshore entities like the British Virgin Islands BC to a more “difficult to bank” company like those registered in Saint Vincent and the Grenadines.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus, FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
You can learn more on the Products page on our website.
