What is an IBC?
An International Business Company (IBC) is a legal entity that should not have a principal business activity in the country where it has its registered office. It should engage primarily in "international business" rather than domestic business. It is usually an untaxed company, which is also not required to file annual accounts and annual returns.
When referring to an offshore company or corporation, one is usually referring to an IBC. IBCs are usually located in an offshore financial centre which is "offshore" from where the owners are located. The IBC then also operates "offshore", i.e. in other jurisdictions rather than where the IBC is domiciled.
A series of Jurisdictions offer IBCs and differ little between these jurisdictions. Most typically include exemption from local corporate taxation and sales tax, provided that the company does not carry on a local business (annual agent fees and state registration fees typically amounting to a few hundred EURO per year), maintenance of the confidentiality of the company's beneficial owner, broad powers for the company to engage in various businesses and activities, a reduced requirement to demonstrate corporate benefit, no requirement to appoint local directors or officers, and a requirement for a local registered agent to have a registered office.
The advantages of one jurisdiction over another relate primarily to price, availability of names, familiarity, and speed of incorporation and order processing.