The following questions need to be asked when determining which IBC is best for your specific needs. There is no right or wrong answer to any of these questions. But there are some answers that are better for you, and others that are worse.
Q. What specific kind of IBC do you require? (A corporation, limited liability company, limited liability partnership, to name the most common.)
If the IBC you require is a corporation, these specific questions apply:
Q. Is it organized according to the American model or British model? (The American model will usually have a president, vice president, secretary and treasurer, as well as a board of directors. The British model will usually have a Managing Director, secretary and treasurer, as well as other directors.)
Q. What is the minimum number of shareholders required?
Q. Can all of the officers and directors be either natural persons or entities? If not, which if any can be both?
Q. Must any of the officers or directors be resident within the country of incorporation?
Q. Can all of the shareholders be either natural persons or entities?
Q. Can the company issue both bearer and registered shares? If so, are there any restrictions on the issuance of those shares?
Q. What information regarding the officers, directors, and shareholders is available in public registers?
Q. Do the books and records of the company need to be kept within the jurisdiction of incorporation?
Q. Are audited books required? If so, to whom are they available for review outside the company?
Q. With which other countries does the country of incorporation have tax treaties, or tax information exchange treaties?
Q. In what businesses can the company not engage without additional permission, and/or special licensing?
Q. Is the company required to keep a registered agent, registered office, or both within the country of incorporation?
Q. What annual fees and/or taxes are due to the government of the country of incorporation, and when?
Q. What annual fees, costs and expenses are due to the registered agent and/or registered office, and when?
Q. What other expenses can be anticipated in the usual course of business each year, and when?
If the IBC you require is a limited liability company, these specific questions apply:
Q. Can the LLC be managed by its members, its managers, or both?
Q. What is the minimum number of members required?
Q. Can all of the members and managers be either natural persons or entities? If not, which if any can be both?
Q. Must any of the members or managers be resident within the country of incorporation?
Q. What, if any, restrictions are there in law on the issuance of memberships of LLCs, or the form in which those memberships are issued or held?
Q. Are charging orders permitted with regard to third-party claims against members? Are charging orders the sole remedy of such creditors? Can such charging orders be foreclosed upon by creditors?
Q. What information regarding the members or managers is available in public registers?
Q. Do the books and records of the LLC need to be kept within the jurisdiction of incorporation?
Q. Are audited books required? If so, to whom are they available for review outside the LLC?
Q. With which other countries does the country of organization have tax treaties, or tax information exchange treaties?
Q. In what businesses can the LLC not engage without additional permission, and/or special licensing?
Q. Is the LLC required to keep a registered agent, registered office, or both within the country of organization?
Q. What annual fees and/or taxes are due to the government of the country of organization, and when?
Q. What annual fees, costs and expenses are due to the registered agent and/or registered office, and when?
Q. What other expenses can be anticipated in the usual course of business each year, and when?
If the IBC you require is a limited liability partnership, these specific questions apply:
Q. Can the limited liability partnership be managed by its limited partners, its general partners, or both?
Q. What is the minimum number of limited partners required? What is the minimum number of general partners required?
Q. Can all of the limited and general partners be either natural persons or entities? If not, which if any can be both?
Q. Must any of the limited or general partners be resident within the country of incorporation?
Q. What, if any, restrictions are there in law on the issuance of partnerships of LLPs, or the form in which those partnerships are issued or held?
Q. Are charging orders permitted with regard to third-party claims against partners? Are charging orders the sole remedy of such creditors? Can such charging orders be foreclosed upon by creditors?
Q. What information regarding the limited or general partners is available in public registers?
Q. Do the books and records of the LLP need to be kept within the country of formation?
Q. Are audited books required? If so, to whom are they available for review outside the LLP?
Q. With which other countries does the country of organization have tax treaties, or tax information exchange treaties?
Q. In what businesses can the LLP not engage without additional permission, and/or special licensing?
Q. Is the LLP required to keep a registered agent, registered office, or both within the country of organization?
Q. What annual fees and/or taxes are due to the government of the country of organization, and when?
Q. What annual fees, costs and expenses are due to the registered agent and/or registered office, and when?
Q. What other expenses can be anticipated in the usual course of business each year, and when?
With answers to those questions in hand, you and/or your professional adviser should be able to make the best choice to fit your individual needs.
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