Law Dictionary

International Business Corporation (IBC)

(Tax Law)

The term international business corporation or IBC refers to a corporation formed in an offshore financial secrecy jurisdiction which may, but not necessarily, be afforded certain tax advantages and protection as to the disclosure of its beneficial owner in certain cases and depending on the chosen jusrisdiction.
Also, depending on the offshore financial secrecy jurisdiction, shareholders of the IBC may remain confidential through the use of bearer shares. Not all juridictions offer this type of shares and instead shareholders may need to be registered in the corporate books and records. Just as with U.S. corporations, the same person may act as a shareholder, director, president, agent, or as any other officer within the company. Generally, however, for practical reasons, the beneficial owner(s) will appoint resident officers and directors for the IBC. Typically, but not necessarily, an IBC is authorized to do business anywhere in the world except in its home country where it was incorporated (i.e. an IBC formed in The Bahamas may do business anywhere in the world except The Bahamas). Some jurisdictions allow their corporations to do business within their own countries and territories, which facilitates international business operations and foreing investment in highly profitable non-traditional markets. The IBC may purchase real estate, cars, businesses, etc. in any country. 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 right for privacy. It has been reported that there are over one million IBCs formed in offshore jurisdictions worldwide.

Source : Internal Revenue Service - United States Department of Treasury

Language : English

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