| Off-shoring the banking to a tax haven leads to | | | | However if you have decided to offshore your |
| innumerable benefits for the person who is indulging in | | | | company then you should make sure communication |
| it. Few people know that you can even offshore | | | | links to the company are taken care of as crucial |
| companies for tax benefits. Such an arrangement is | | | | instructions need to be transmitted immediately and |
| called an IBC or International business company. This | | | | communication is important for the success of your |
| type of company is created under a company act | | | | business. You should also make sure the privacy of |
| called the Caribbean Style company act. However this | | | | your customers is given due importance since |
| type of act is not used as commonly as the Channel | | | | off-shoring business can cause privacy issues if they |
| Islands model which is used to create off-shored | | | | are not foreseen. |
| companies in Europe, the Turks and Caicos islands | | | | When choosing a tax haven you should make sure |
| and St. Kitts. | | | | the country is stable and that you do not get |
| An IBC or off-shored company can be defined as a | | | | stigmatized because of choosing such a location in |
| company that is created in a tax haven specifically | | | | the future. It is better to choose an old and trusted |
| for the purpose of doing business all over the world | | | | country for opening an international company than a |
| except the country of incorporation. However, the | | | | new one. Countries like Australia, Quebec in Canada, |
| company owner cannot sell items in the off-shored | | | | Ireland, Spain, South Africa, Venezuela, Greece are |
| country but they may lease land for even fifty years | | | | places where the unhealthy trade practices have |
| depending on the country and it may conduct | | | | forced the local people to resort to bank offshore or |
| business with other local IBS's in the same country | | | | maintain bank accounts offshore due to the inherent |
| and even enjoy local banking facilities. Almost all IBC's | | | | risks of banking in their own country where the |
| conduct financial business without any problems from | | | | security or political situation is not conducive. This |
| wherever they are located and this has a lot of | | | | phenomenon of capital leaving the country due to |
| benefits for the parent company. Some of the | | | | certain disadvantages is known as flight capital and |
| benefits are as follows. | | | | this is a major cause of offshore banking. |
| Annual meeting need not be conducted and | | | | Hence it can be seen that the benefits of maintaining |
| telephonic meeting can be held as needed and the | | | | an offshore company will give you a lot of tax |
| directors, shareholders and officers can be of any | | | | benefits but one must be careful of the country that |
| nationality and their names can be kept private if | | | | one chooses to start the company in. You should be |
| needed. Also the company can save money on | | | | fluent in the native language of the country to avoid |
| reduced professional fees in certain countries. | | | | being cheated and it is better to invest in English |
| Depending on your needs you can select a tax haven | | | | speaking countries if you can converse and read only |
| where you have to pay little to no tax and which has | | | | English. |
| no corporate tax imposed on the company. | | | | |