international business company (IBC)

Corporation formed under the corporate legislation of a tax haven (such as Bahamas, Panama, Turks & Caicos). IBCs are not authorized to do business in the country of formation (incorporation) but can have offices that manage global operations. In addition to the usual benefits accruing from incorporation (such as limited liability), IBCs also enjoy banking and corporate secrecy, rapid formation, low cost, little or no taxation, and minimal filing and reporting requirements. Some tax havens also allow nominee shareholders and directors.