Some Basic Characteristics of an International Business Company (IBC) in Belize

Belize is a popular jurisdiction for incorporating offshore companies and IBC’s incorporated in Belize are often used by high net worth individuals to lease and own property, estate planning, tax optimization and also in conjunction with trust and by international companies in cross border transactions.

A Belize IBC is a tax-free and exchange control-free Limited Liability Company, incorporated under the laws of Belize. However all its profit-earning activities must be conducted outside Belize. A foreign company also has the option to continue under the law of Belize as an IBC and would still have all the benefits provided by law.

A fundamental feature of the IBC in Belize is how the law was specially designed to be cost saving. Because there are no minimum capital requirements, no need for audited accounts, no annual returns, no requirement for a local director or secretary and no requirement for an annual general meeting, the costs of maintaining a Belize IBC are kept to a minimum.

Another feature that makes a Belize IBC attractive is its flexibility. Only one director and one shareholder are necessary and it may have bearer shares or registered shares, voting or non-voting shares as well as the authorized share capital may or may not have a par value. The IBC may conduct any business that is not prohibited under the laws of Belize save and except for banking, insurance, trust management and collective investments, which requires a license. The IBC may also purchase its own shares and redeem its own shares.

Although the Belize IBC must conduct all its profit earning activities outside Belize, it may lease an office in Belize, obtain the services of Belize professionals and trust companies, keep its company records and hold meetings in Belize, operate an account with a local Banking institution, hold shares in another Belize IBC and own vessels registered in Belize.

To register a company in Belize proper due diligence is carried out by the registered agents in compliance with The Money Laundering Act and Code of Conduct in Belize. A company may choose to have nominee directors or nominee shareholders; however, the only document presented for public filing at the registry is the Memorandum and Articles of Incorporation. There is no requirement for public disclosure or annual filing of accounts under the act. The Financial Intelligence Unit of Belize and the International Financial Services Commission of Belize are the only two organizations that have privy to client’s information upon request.

Why Offshore Tax Haven Company Incorporation

Why Incorporate an Offshore Tax Haven Company?

An Offshore, International Company is commonly set up in a tax haven like the British Virgin Islands, Bahamas, Caymans Islands etc, where there are no corporate or personal income taxes, capital gains taxes, reporting requirements, or restrictions on company employment policies.

As the “world” becomes global, fewer businesses are local and many corporations are increasing going internationalization. Corporate structuring and planning have achieved higher levels of complexity than ever before while the need for anonymity remains strong.Corporation must keep pace and be constantly on the look out for new ways to profit. One way is to have a clear understanding of the characteristics offshore foreign corporations and how they may be put to advantageous use.

Offshore Companies are only applicable if you are doing business overseas and not in the country where you’re offshore was incorporated. All income derived in and from the incorporated country is normally taxable. eg. An offshore incorporation in Bahamas, doing business in Bahamas will require to pay taxes in Bahamas, where else, if the business was done in USA or Hong Kong, all profit are not taxable.

Singapore and Hong Kong although not typically regarded as tax haven, has a favourable tax regime which effectively means that correctly structured, managed and administered these companies can be utilised for offshore business and international business without paying tax in Singapore or Hong Kong provided that any profits arising are not made in the respective country (non resident company) and the earned money can be remmitted back. This type of tax regulation is known as “territorial taxation”. With the strict rule in place for prevention of money laundering and terrorist financing, opening bank account for other tax haven jurisdictions can be difficult. On the contrary, to open a corporate bank account for companies in Singapore or Hong Kong is easier as these companies are more transparent due to the strict compliance control by the government.

What is Tax Haven?

A tax haven is normally known as a jurisdiction, which actively makes itself available for the avoidance of taxes, which would otherwise be paid in a higher tax jurisdiction. A more correct term to use would be tax mitigation or planning, because there are ways of mitigating taxes without breaking the law, whereas tax avoidance is generally classified as a crime.

Is it legal for me to have offshore companies, and bank accounts?

Yes, because most nations encourage international trade and enterprise, there are usually no restrictions on residents doing business or having bank accounts in other countries. Reporting requirements on such accounts however, differ from country to country. Sophisticated and reputable high-net-worth individuals and corporations routinely use offshore investment vehicles worldwide.

Main keys benefits for having your an offshore company.

The main reasons to incorporate offshore are:

Asset Protection – Protect assets in combination with a Trust, an offshore company can avoid high levels of income, capital and death taxes that would otherwise be payable if the assets were held directly. It can also protect assets from creditors and other interested parties. From competitors, adverse claimants and other parties from whom you wish to keep your business interests private and to secure against future claims such as bankruptcy, judgment creditors and other litigants, etc.;

Confidentiality – Keep business affairs confidential, Offshore Companies offer complete privacy. If the company shares are held by a Trust, the ownership is legally vested in the trustee, thus gaining the potential for even greater tax planning advantages.

Estate Planning – Family and Protective Trusts (possibly as an alternative to a Will) for accumulation of investment income and long-term benefits for beneficiaries on a favorable tax basis (without income, inheritance or capital gains taxes);

Simplify the transfer of assets and properties held in several countries: The sale or probate of properties in different countries can become complex and expensive. If an offshore company collectively holds these, ownership can be transferred by company shares rather than transferring the actual properties owned by the company.

International Tax Planning – Conduct business without corporate taxes: Tax havens, such as British Virgin Islands, allow the formation of International Companies that have no tax or reporting responsibilities. This means you save money not only from the absence of corporate taxes, but also from reduced compliance and other regulatory costs. Reduce payroll and travel expense administration: Allow employment or consultancy fees to accumulate in a low tax area: Offshore corporations can contract the services of professionals to employers resident in high tax locations or politically unstable areas. This allows the fees to accumulate in a low tax jurisdiction.

Conduct business as an international entity: International Companies have the same rights as an individual person and can make investments, buy and sell real estate, trade portfolios of stocks and bonds, and conduct any legal business activities – so long as these are not done in the country of registration. Offshore Companies set up in offshore need not pay social security, withholding tax, or associated expenses of employees working in other foreign countries.

Major savings for companies that have staff working on overseas projects. Minimize tax exposure when dealing with international transactions: An offshore corporation can buy or lease products from one country and then sell or lease them to a company in another country so the profits of the transaction are accumulated in the offshore company where there is no taxation on profits. Maximize profits from intellectual property rights, franchising and licensing: An offshore company can franchise or license intellectual property rights in other foreign countries allowing the profits to accumulate in a tax-free environment.

Protect investments in other foreign countries: International Companies can loan funds to corporations in other foreign countries. Investors may set up, but not directly own, an offshore company that loans funds to a development company set up in another country and charge interest rates that will lower tax obligations and protect the long term ability to repatriate investment funds. This can be especially important when working in countries with strict exchange controls and high tax profiles.

Own or lease ships or pleasure craft: Shipping companies may own or lease ships or pleasure craft and pay no taxes on income derived from the vessels. Registration fees are low and vessels are welcomed in ports worldwide.

Set up an Offshore Company:

Rikvin International will set up an offshore company anywhere in the world on your behalf. It normally takes 24 hours to register an offshore company. An offshore bank account can be set up, although it will take longer for full access due to the need to have original signature cards (providing you wish to have direct access to the bank account in your own name.

Rikvin Offshore offers a convenient way to incorporate your company. We provide a comprehensive range of services to both local and international clients. When you want to set up an offshore company, you can rely on us to be there every step of the way for you.

For more information, please visit http://www.rikvinint.com or call us at 65- 64388887

Tags: offshore Incorporation, offshore business registration, setup offshore company

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Article Source: http://www.articlesbase.com/ – Why Offshore Tax Haven Company Incorporation

Is it expensive to create an offshore company?

Not long ago it could be quite expensive to create an offshore company. And rather complicated too. But this changed a lot with the arrival of the Internet. Today it is easy to find a lawyer or any other consultants that are willing to assist you in creating your offshore company. However, find a good one can be a completely different issue.

Only creating an offshore company is in many offshore jurisdictions not very expensive and you can easily create a company for less than 1500 USD or 1200 Euros in several jurisdictions. The problem is that this amount only covers the creation of the company without any services included. Often it is not sufficient to only create the company, you will also need someone to take care of certain paper work, a nominee shareholder, a nominee board member and maybe the offshore company should be owned by a trust or an offshore foundation etc and of course none of these services are for free.

As always when considering an offshore solution it is vital to analyze your own situation and your purpose with going offshore. Only when you have done this analysis you can estimate the total cost creating an offshore solution that fit your specific needs.

But in order to answer the question in the title – no, generally speaking it is not especially expensive to create an offshore company. At least not when comparing the prices with similar ‘onshore’ services in Northern America or Europe.

What is an Offshore Company Mill?

Something anyone interested in creating an offshore company will get in touch with is the “Offshore Company Mills”. An Offshore Company Mill is an affiliate or a re-seller of offshore companies that is not a law firm and most often has almost no legal knowledge whatsoever concerning offshore legislation. They could be selling almost any other product or service on the Internet but have for some reason decided to go for selling offshore companies.

Besides the danger with buying from someone that does not know what they are doing a problem that often is foreseen is the fact that there are no attorney client privilege between the Offshore Company Mill and the client. The Offshore Company Mill can thus use the client information against the client, they can sell the information to a third party and if the authorities demand client information from the Offshore Mill they most often have no choice to hand it over to the authorities.

If a strong secrecy is an important factor for you in your future offshore structure you should deal directly with a registered and recognized law firm and not use an Offshore Company Mill or any other service provider that not can grant you complete secrecy by law.

Offshore Company – Where to Incorporate?

When considering incorporating an offshore company there are several alternatives with regard to in which jurisdiction the offshore company should be incorporated. Some of the jurisdictions that often are used as the venue for incorporating an offshore company are for example Bermuda, Belize, British Virgin Islands (BVI), Cayman Islands, Mauritius, Cyprus, Malta, Panama etc.

Often one will hear or read recommendations about a certain jurisdiction being the “best” one for incorporating an offshore company. The problem is that there is no one ‘best’ jurisdiction that fits all. The choice of jurisdiction depends completely on the purpose with the creation of the offshore company. Is the purpose to minimize the taxes? Or is it to protect certain assets? Or maybe the purpose is to run a trading company offshore?  Without knowing the purpose of creating the offshore company it is simply not possible to say that a certain jurisdiction is the best choice.

However, knowing the purpose with the incorporation is not sufficient. Another determining factor is where the owner of the company is domiciled and if there are any other jurisdiction where the owner might be held responsible for certain liabilities. Most often the ‘best’ jurisdiction for incorporating an offshore company is not the same for an US citizen as for a Russian or someone living in the Middle East.

Accordingly with what has been said above there are no such thing as one best offshore jurisdiction for incorporating an offshore company. Which jurisdiction that should be chosen depends completely on the circumstances in each and every individual case. Thus, you must first off all analyze the purpose with the incorporation and thereafter do a risk analysis of your personal situation with regard to the jurisdiction where you are domiciled or any other jurisdiction where you can be held liable. When this is done you can start analyzing all the different offshore jurisdictions that are available for incorporating an offshore company.

Features of International Business Companies (IBC’s) in Belize

There are many features that set Belize apart from other locations for IBC creation and incorporation. Below are some of the major features:

• Competitive prices for incorporation and annual fees for a Belize IBC;
• The incorporation process for Belize Offshore companies will not take longer that 3 working days;
• A Belize offshore company is exempted from all taxes;
• The names of the shareholders and directors for offshore Belize are not a part of the public record;
• The bearer share is allowed for offshore Belize;
• Minimum of one director and shareholder required for Belize incorporation;
• To incorporate in Belize, the director(s) and the shareholder(s) can be physical person or a company;
• The director and the shareholder can be the same person;
• There is no requirement to appoint a local or any secretary for Belize companies;
• The first director of the company is appointed at the organizational meeting of the Belize corporation;
• For Belize corporations, there is no requirements to file any accounts or to provide annual audits reports;
• The register of shares has to be kept and up to date;
• A registered agent and a registered office are required;
• Annual fees are due to be paid by the 31st of July, starting from the second year of incorporation and each subsequent year thereafter;
• The Belize IBC cannot derive any income from activities in Belize;

How and where to create an offshore company

When selecting some service online what is the first thing we pay attention to? Yes, exactly, company origin. When some new online payment system appears, what do we check first of all? Yes, registration. So, in any case those few lines of address play a great role for us, and we perceive them as a key factor determining our choice. However, when choosing some product, e.g., a pack of milk in supermarket we tie the country of the manufacturer with some quality level and make purchases basing on it. But then it comes to some internet financial service we in most cases find some obscure names and addresses in some unknown countries, widely known as offshore countries. So, why are those countries are so attractive for the online businesses? Why do they need it? And how much does it cost to run business in some exotic country?

First of all let’s go to the term “offshore business” itself. According to encyclopedia offshore company is a company which is incorporated outside the jurisdiction of its primary operations. There are three characteristics of offshore companies:
• it should be incorporated under the offshore companies regulations of relevant offshore jurisdictions.
• it should be incorporated by incoporators outside the offshore jurisdiction where it is incorporated.
• it should not conduct substantial business within the offshore jurisdiction where it is incorporated.
Today there is a great number of territories have officially a status of the offshore zone: Andorra, Anguilla, Antigua, Aruba, Bahamas, Bahrain, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Cook Islands, Costa Rica, Cyprus, Djibouti, Dominica, Dublin, Ghana, Grenada, Guam, Guernsey, Hong Kong, Isle of Man, Israel, Japan, Jersey, Labuan, Malaysia, Lebanon, Liechtenstein, Luxembourg, Macau, Malta, Marianas, Marshall Islands, Mauritius, Micronesia, Montserrat, Nauru, Netherlands Antilles, Niue, Palau, Panama, Philippines, Puerto Rico, Samoa, the Seychelles, Singapore, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Switzerland, Tahiti, Tangier, Thailand, Turks and Caicos, Uruguay, Vanuatu and the United States (particularly, Delaware, but some other states have offshore characteristics).

The main advantage of offshore companies is easiness of running the business. The benefits of offshore companies are evident: easiness of business set up, low taxation, loyal laws and protection of the foreign jurisdiction. Such form of business became a real heaven for the organizations and especially for financial institutions such as online payment systems. Being protected by the law of some offshore country such companies can operate worldwide without any fear of being prosecuted.

So, how to open a company in offshore? Actually it is not a long procedure. You needn’t to go to any exotic country and to speak to local agencies in their language to get the desired address. Today it is enough just to open your favorite browser, choose one of the numerous companies dealing with registration in offshore jurisdictions, select the offshore country you like and contact the registering company. What happens later is not your trouble since the company will do everything itself.

Today the most popular offshore jurisdictions are Panama, the Seychelles, Costa Rica, Singapore, Switzerland, Belize, Cyprus, Hong Kong, USA Delaware and others. Every customer has his or her own preferences and the choice of the jurisdiction depends solely on the consumer, since only he/she knows what will be the best for their business.

What about the registering companies? As we have already stated today there is a great number of companies providing services in the sphere of offshore business registrations. One of such companies is CSR-corporation offering registration and formation of offshore companies in all reputable jurisdictions. The company offers a full rage of services starting from consultations and ending with additional services to your company, such as virtual office and etc. Besides CSR today we can see significant activity of such companies as OCRA, SeychellesOffshore, FletcherKennedy, and others. Actually all of them have almost the same range of services, however the prices varies.

Usually the formation of offshore company is performed as follows:

If you are a newbie and do not anything it would be better for you to address the company advisors. They, knowing the offshore jurisdictions to a nicety will help you to find the best jurisdiction for your business, including money aspects.

Having chosen the company you need to make a written request, or order the company. Usually companies provide ready made forms and you will need just to complete them and indicate such key factors as prices, services and terms, and your precise contact details. Also, here you can choose where to select from the list of ready-made companies or to create a new one. Actually all the companies have that list of ready-made companies. Those ready-made companies are the same companies that have already been created but have the so-called “open” configuration, and are to be finalized in accordance with client’s requirements. Having made an order you need to wait for a while to let the company staff to process your order. Usually this procedure takes up to one business week however, the terms depend on the company.

After completion of your order processing the company will address you for payment. Here, advance payment is a usual thing and not a single company will work under other terms and conditions. The only exception is the regular customers. For payments the companies send the invoices and there specify all the payment options available. Usually payments are made via bank transfers, or credit cards. However, the latter ones are not so popular along with the online payment systems.

The prices of the companies range. First of all they depend on the company type, jurisdiction chosen, additional services and the registering company itself. Usually the prices for the whole registration start from $600, the upper level is determined by the customer. However it rarely exceeds 10-12 thousand USD. The most common price is about $1,000. However, some companies offer special suites which include various services and provide some discount. So, for example, SeychellesOffshore offers its clients wishing to open business in the Seychelles Premium Incorporation Package for $999 which includes all the fees, preparation of all documents, legalization, provision of a corporate nominee director and shareholder, registration of office and provision of Registered Agent, delivery cost. CRS corporation offers to register your company in the Seychelles just for 680 Euro.

Once the payment is accepted the registering company starts fulfilling its obligations. The registrar collects the necessary papers (in addition to the papers provided by you), files them to the appropriate government bodies and pays all the necessary fees and capital duties.

Usually such procedure lasts 1-10 business days, sometimes longer. The period needed for company formation depends on the created company itself. Sometimes, especially if it comes to some financial institutions it is necessary to pass several certifications and verifications which are carried by various bodies, hence the registration and company approvals may be drawn out.

After obtaining the necessary approvals and passing the certifications the registrar sends you by a regular mail or courier all the documents confirming your authority and legality of the company.

And… our congratulations! You’ve become the owner of the offshore business with all its benefits and advantages. Now you can run your business and get great profits from it however you should keep in mind that some jurisdictions such as the Seychelles, for instance, demand paying annual renewal fees. However it doesn’t mean that you will be required to pay the whole amount you paid to get the registration. It usually varies from $500 – $3000 depending on company type and jurisdiction. Non-payment of those fees results in annulment of the registration and loss of the offshore registered company status. Though usually government thinks of its “businessmen” who usually busy and sometimes forget paying their taxes and fees and changes them together with your professional fees.

And if the government of the offshore cares about you, why not to care about yourself and make your company even more profitable by lowering your taxes and obtaining more freedom in business? Of course, offshore businesses have such disadvantages as impossibility to make deals with the local companies. But actually having refused servicing the population of Panama, for example, you open new horizons and eliminate the borders of all the countries worldwide. And it makes sense to consider…