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.
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