Offshore Company Formations – Learn the Various Types

An offshore company can be of different types. However, some of the well-known and widely practiced offshore company formations include Internal Business Company (IBC), Limited Liability Company (LLC) or any other type that closely matches one of these two structures.

International Business Company (IBC)

IBC offshore incorporation is prevalent in several jurisdictions like Seychelles, the British Virgin Islands and Belize. It can be distinguished by features such as utmost confidentiality, easy and fast company setup, no taxes on overseas income, freedom from local taxes and stamp duty, limited liability of its members, no capability to trade inside the country where it is domiciled and limited or lack of continuing filing requirements.

Seychelles Special License Company (CSL)

CSL is a mix of offshore/onshore company that can conduct business from Seychelles at a lowered tax rate of 1.5 percent on its gross taxable earnings worldwide. This kind of offshore company formations is eligible to become a tax resident of the country, so it is capable of accessing the mounting list of double taxation treaties between Seychelles and other nations such as South Africa, China and Indonesia. As an investment medium into markets, the CSL can draw advantages from the reduced withholding rates on the return of interest, royalties, dividends, etc., as agreed upon in the Double Taxation Avoidance Agreements. 

Limited Liability Company (LLC)

The LLC offshore incorporation greatly resembles the IBC because both the forms provide limited liability. It has found overwhelming favor in Nevis and the United States where LLCs in states like Nevada, New Mexico, Wyoming and Florida are very popular. Although a Limited Liability Company has quite a few similarities with an IBC, it is a mix of a limited company and a partnership from the structural point of view.