What Is an IBC? | Free Guide on IBCs and Their Benefits

In this article, weโ€™re answering โ€œWhat is an IBC?โ€ But, instead of keeping you waiting, an IBC is an International Business Company.

Below, we discuss where IBCs are incorporated, how they are used, and the benefits that most people can unlock with an IBC.

This article is part of our free series on international banking ranging from our free guide on bearer shares to opening accounts remotely.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. What Is an IBC?
  2. Frequently Asked Questions
  3. Do You Want Help Opening Bank Accounts?

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.ย 

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, it is possible that IBCs will 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. 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.

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.

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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, donโ€™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 โ€œdifficult to bankโ€ company like those registered in Saint Vincent and the Grenadines.

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