Offshore Company Formation, What Is Offshore Company Formation?

By Author: Mr Dimitri Rusca
Total Articles: 55
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An IBC is a corporation that is incorporated (formed) in a zero tax or low tax jurisdiction and is typically authorized to do business anywhere in the world except its home country (i.e., an IBC formed in St Vincent and the Grenadines may do business anywhere in the world except St. Vincent and the Grenadines). Just as with U.S. corporations, the same person may act as the shareholder, director, officer of the company. As long as the Company has only one shareholder, one person may act for the company. If the Company has more than one shareholder then a minimum of two directors is needed.

So, during the Swiss company formation you are creating an entity that has been granted a charter by a foreign government to conduct a commercial enterprise. You have created a legal foreign "person" who you control. You can open a bank account in the name of your IBC in a foreign country. Your international business company can receive income. Your international business corporation can operate a business.

With the advent of the Internet, a business location is really not nearly as significant as it has been traditionally. The ...
... location may now be no more digital data that can be accessed from an Internet server located anywhere in the world.

We have all heard the stories of attorneys who have their own full-time private investigators. They are hired by many law firms to track down assets of people who have lost legal battles. They are also hired to uncover the assets of potential legal targets. They can even find your bank balances down to the penny.

Attorneys use this information to decide whether or not to accept a case. Especially on a contingent-fee basis, it would be likely an attorney would not accept the case if assets cannot be located.

This is where the International Business Company comes in. The IBC allows you to hold assets out of your name in a safe, secure financial centre. The IBC at the same time also allows you to retain 100% control of your IBC's assets. When an attorney hires a private investigator to locate assets, it is extremely unlikely that they will be discovered. Keep in mind, in the offshore jurisdictions in order to open an IBC bank account there is no social security number or social insurance number required. It is a crime for a banker to reveal your association with a bank account to an individual outside of the bank. In any public record your ownership of an IBC is not recorded.

Taking privacy very seriously there are countries with IBC laws. The asset protection provisions in some countries are extremely strong. Many of these countries by offering a safe-haven in which to store one's money are island nations that have become financially strong.

St Vincent and the Grenadines IBC law makes it extremely difficult to establish who a director or principal of a company is since the Swiss Trust Bank has to abide by the Swiss Banking code and deny the existence of the company, its directors and who its customers are. A Virtual office in Switzerland is also essential to be present in a company. You can also take the help of Swiss Bank for more discussions. Therefore, in two ways assets such as offshore bank accounts can be protected from judgment creditors:

1. Privacy because St Vincent and the Grenadines IBC law protects the owner of the LLC from being revealed.

2. Asset protection, because St Vincent and the Grenadines IBC law protects the assets within the LLC from being associated with a member of the LLC.

Rusca Dimitri works in for a trade finance company for more than 20 years. He has good management skills and during his free time he writes short articles on Swiss company formation, and virtual office in Switzerland.