Such a company is often part of a trust structure which can be used for tax planning or where the ownership of an asset cannot be registered directly in a trustee's name. The IBC can also function as a quasi-Trust in the holding of assets anonymously, while still providing a certain degree of control over the assets by the settlor/owner.
With MSI, an IBC can:
- Provide shelter and anonymity for assets and investment portfolios.
- Enjoy maximum growth in the absence of tax on income or capital gains.
- Transfer valuable ownership rights, including copyrights and royalties on patents, thus reducing some rates of withholding tax.
- Accumulate increased profits over time which can be reinvested or used as working capital.
- Provide operational freedom by not requiring the need for the company to specify the nature or purpose of its business in its incorporation documents.
- Be incorporated within 24 hours.
- Eliminate onerous regulatory requirements such as filing annual returns or financial statements, and holding annual general meetings of shareholders or directors.
- Take advantage of full exemption from taxation in The Bahamas.
- Engage in any lawful business in any country and carry out transactions in any currency.
- Hold its books, records and minutes in any place or country at the director's discretion.
- Hold meetings of shareholders and/or directors in any country, by proxy, or by electronic means.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances