We can assist with the formation of companies for the following:
International business companies (“IBC”)
Perhaps the most widely used and universally popular structures used to hold and accumulated foreign sourced income, to preserve wealth, guarantee privacy or simply trade. IBC are a low-cost, user-friendly alternative in a world of increasing regulation.
The movement of goods across international borders offers many opportunities for the use of IBC. This may take the form of legitimate transfer pricing structures, commission agencies, the provision of confirming finance, the hire or leasing of capital assets and many more related activities.
The provision of engineering, financial, IT consultancy or management or services to overseas contractors or foreign clients can be routed through foreign companies. An IBC may also be used to provide the services of entertainers or sportsmen to global promoters. Where one operates in an environment of high risk of litigation or claims, it may be appropriate to sing-fence certain corporate activities away from other business interests.
Intellectual property such as copyrights, patents, computer software, technical know-how, designs, and image rights, may be owned by an IBC and licensed to third party licencees or sub-licencees. International franchises can be similarly structured through an IBC. For consideration of some double taxation avoidance treaties, IBC can sometimes own subsidiary companies in “onshore” jurisdictions to minimize withholding taxes.
IBC are very often used as investment companies for foreign based subsidiaries holdings or associated companies, foreign real estate assets, equities or bonds quoted on overseas or domestic stock exchanges, and foreign joint venture projects.
Finance and banking
Inter-company loans may be routed through an IBC acting as a private finance company or a “captive” overseas bank to rationalise finance costs and to centralise funding controls. Financing of overseas subsidiaries or joint ventures may be more efficient if directed through an IBC. An IBC acting as a private finance company or “bank” may also be used to centralise treasury or money management activities, to raise syndicated loan funds, or to provide finance to group entities, subsidiaries or clients.
IBC companies are very frequently used for the ownership or chartering of vessels registered on international shipping registries. Ship management and other maritime services are often provided through IBC. Private yachts and motorized vessels may also be owned by IBC.
One of the more sophisticated uses of an IBC is to effect insurance arrangements through a captive insurance company. The captive insurance company will insure the related company’s risks either on a self-insured basis or under cost effective reinsurance arrangement.
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