Types of Offshore Company Formations

Each company has a variety of unique features and structures dependent upon the jurisdiction and its unique corporate laws. In this section, we’ll cover two main offshore formation vehicle

International Business Company (IBC)

• An International Business Company (IBC) refers to a type of offshore company, which engages in international business activities in trade or investment and remains exempt to local corporate taxation, provided that its revenues does not come from local sources.
• Jurisdictions provide varying degrees of tax benefits, though most usually offer exemption of corporate tax, income tax and stamp duty. An IBC also benefits from confidentiality of ownership, asset protection, a wide versatility of share issuance, flexible management arrangements, and minimal financial reporting requirements.
• There are many such structures available, some of the more popular being Panama, BVI, Belize, Dominica and St. Vincent. For all options featured by Sovereign, view the Corporations (IBCs) menu at right. 

Limited Liability Company (LLC)

• A Limited Liability Company (LLC) is a company different from a corporation that provides limited liability to its owners and partners. It is a hybrid business entity with a flexible arrangement, allowing power and responsibilities to be named and distributed through its charter.
• An LLC provides a tax-neutral vehicle that bypasses corporate taxation due to its existence as a partnership. Therefore, the burden of tax falls upon the individual members of the company rather than the entity itself.
• A Member of an LLC has the same responsibilities as a shareholder in a normal company, which may include individuals, companies or trusts and allows for flexible levels of ownership and remuneration.
• The flexibility of an LLC is ideal for structuring international orientated joint venture arrangements, as the company can enjoy all of the benefits of incorporation, without any tax liability.
• Read Benefits of an Offshore LLC for more details and information. For all options featured by Sovereign, view the Limited Liability Companies (LLCs) menu at right.