What is an IBC Company? An IBC Company can trade across International borders, free of Corporation Tax and local taxes, such as, VAT in Europe. If an IBC trades in the country where the Company is registered in. it will be required to pay taxes to its resident tax authority, if tax is applicable.
Personal tax liabilities of beneficial owners of an IBC Company. We are not qualified to give advice on tax matters, but the general rule Internationally, is that beneficial owners of IBC Companies will have a personal tax liability for profits and funds repatriated to the beneficial owner of the Company. If you are unclear of your personal tax liabilities in your personal country of residence, we recommend talking to a suitably qualified accountant. We are happy to work with your professional advisers if you wish.
Our message to our clients is quite clear, take maximum advantage of your proposed IBC, but act in a compliant way, to ensure you are acting in a safe and responsible manner.
Now let’s look at the choices available to you for the location and jurisdiction of your prosed new Company:
- RAKICC. Our most favoured jurisdiction without a doubt is the United Arab Emirates RAKICC. RAK International Corporate Centre, Ras Al Khaimah. There are several reasons for this. Whilst RAKICC Companies are completely free of corporation tax and VAT, the jurisdiction is not tagged with the stigma of being a ‘Tax Haven’. The jurisdiction has a great corporate image and with the added benefit of confidentiality. In November 2019 after being a RAKIICC licensed agent for six years, our Company were appointed as ‘Main European’ agent for RAICC, testimony to our belief that RAK Companies are the best available today. More details here
- Seychelles IBC Companies. Our second recommendation is a Seychelles IBC Company, again free of corporation tax and VAT and a more budget friendly option. A modern jurisdiction and as with RAKICC companies, the Seychelles has not been tarnished the an obvious #Tax Haven’ image. More details here
- UK Limited Companies. We specialise in opening UK Limited Companies for foreign nationals who are not resident in the United Kingdom. Whilst it is a fairly easy process to set up a UK Limited Company, it is not possible to open a UK Bank account when the directors and shareholder of the Company are not resident in the UK. Our answer to this problem is simple. We can open a UK Limited Company with a registered office in London and arrange a bank account for the Company, in a jurisdiction outside of the UK. More details here
- Belize IBC Companies. We are happy to form Belize IBC Companies; formation time is rather slow and can be difficult. A better option would be a RAKICC or Seychelles IBC.
- Cyprus Companies. Due to recent Cyprus Central Bank rule changes, to form a Cyprus Company and open a Bank account, you are required to have a staffed office in Cyprus and be able to evidence this by providing an office lease and possibly utility bills evidencing that the Company is resident in the jurisdiction.
Other Jurisdictions. Whilst we are happy to form Companies in other jurisdictions, we really advise clients to really consider why you wish to base your business in a jurisdiction that has a bad passed record of shady dealings, which many of the so called ‘Tax Havens’ have. We firmly believe that many of these jurisdictions will fail in the next 2-3 years. Please feel to discuss this with us, so we can perhaps provide a better jurisdiction for your proposed new Company.
Amanda J Molyneux & Company Limited have been trading since 1994, and we are proud of our outstanding reputation as Company Formation Agents and Banking Introducers. Our advice is given freely and in an honest and straight forward manner. Do not hesitate to contact us to discuss your requirements.
Honour in Business
Decus is the Latin for 'honour' or 'dignity'. The basic word for 'business' in Latin is negotium, however, while this word can refer to business in general, it more often implies a particular employment, commission, or business transaction. So in our motto we've used the much rarer word negotiatio, which in classical Latin always referred to the business of banking in particular.This isn't something that some marketing guy came up with - it's the way we work.