What is International Business Company Act of 1990

International Business Companies, or IBCs, are private companies that are well-known for their advantages as a tax-haven. Of all of the vehicles available for offshore business formation, IBCs are the most popular choice of investors. They are formed in different jurisdictions throughout the world, but Belize is of the most popular of these locations.

IBCs are formed in Belize under the International Business Companies Act of 1990. The law is considered one of the most progressive, easy-to-utilize pieces of legislation of its kind. Made with investors in mind, the law helped make Belize the popular jurisdiction for offshore business formation that it is today.

Officials sampled all of the best pieces of legislation from other offshore jurisdictions in order to create the IBC Act of 1990. In doing so, they created a law which provided privileges previously unheard of in the offshore business world, particularly in regards to confidentiality.

In order to receive all of the benefits of a Belize IBC, companies must be incorporated in Belize by a registered agent within the jurisdiction; however, companies may only engage in business outside of the jurisdiction.

Companies are guaranteed absolute privacy, whether they are involved in tax planning, real estate holdings, asset protection, investment purposes, or international flow of capital or financing.

Other advantages to an IBC in Belize through the International Business Companies Act of 1990 include tax exemption from all income earned by the IBC. IBCs are also exempt from taxes on all dividends paid; on interest, rent, or other compensations paid out; and on capital gains on shares, debts, or other securities.

Additionally, officers need not reside in Belize and shareholder meetings can be held anywhere in the world. Attendance can even be made by proxy, further easing an investor’s responsibilities.

The International Business Companies Act of 1990 not only benefited Belize as an offshore business jurisdiction, but also benefits any investor seeking to find the best solution for their offshore business needs.

To learn more about offshore business formation in Belize please leave a comment with your contact info and we will get back to you.

http://www.incorporatebelize.com/belize-ibc.php

Offshore Business Formation in the News – Foreign Property in Dubai

A popular reason for offshore business formation is to invest in over seas property. Investors interested in owning property in Dubai will need to take into consideration a new ban put in place by the Dubai Land Department. According to Clyde & Co, the new restrictions are on companies that are not registered in Dubai or offshore with the JAFZA (or Jebel Ali Free Zone Authority). The policy does not apply to individuals, but to offshore companies only.

Prior to this ban, Law No 7, created in 2006, allowed “foreign persons” to acquire property in Dubai as long as they were granted approval by the Ruler of Dubai. The term “foreign persons” was defined as both natural and legal persons, including foreign companies. Initially, it was assumed that those companies registered with other free zones, such as Shariah airport free zone, would be permitted, but this has proved false.

Clyde & Co clarifies that the Dubai Land Department “will register property in the name of a JAFZA offshore company that is owned by a foreign offshore company (i.e Cyprus or British Virgin Islands) provided the foreign offshore company is owned by individuals and the identity of those individuals is disclosed to the Land Department at the time of registration.”

Companies that have already purchased property in Dubai prior to the new law may still be affected by it. Law No 13, passed in 2008, required land to be registered on the interim property register, and when complete, it would then be posted on the main registered with the Land Department. Those companies with property listed on the interim register will find that they must be registered with JAFZA or they will not be granted a title deed.

The new ban only applies to your offshore businesses set up after January 1, 2011 and does not affect foreign companies which already hold title deeds to land in Dubai.

Resources:

http://www.clydeco.com.

http://www.bi-me.com/main.php?id=50864&t=1&c=33&cg=4&mset=

http://www.clydeco.com/knowledge/articles/real-estate-alert-policy-changes-affecting-foreign-companies-registering-property-in-dubai.cfm