The IBC act prohibits an IBC from:
Holding equity shares in an offshore company in a jurisdiction where there are no taxes on the company, no reporting, where shareholders may be nominees and management can be provided through Power of Attorney offers many advantages. With communication facilities being what they are today and the existence of the ability to trade immediately from just about any point on the Globe, the IBC has become a major vehicle where efforts to minimize taxes and to maintain confidentiality are important.
Depending upon the jurisdictions involved in a trade or in trading, a jurisdiction can be selected where taxes can be minimized or completely eliminated. The existence of the VAT, the intrusion of the EU, withholding provisions, reporting requirements, licensing demands, etc. will dictate the jurisdictions. Generally however trade between South Africa and just about any jurisdiction can be conducted through a Seychelles IBC with great advantage. The country's status provides access to European, African, Asian and other countries with great facility and potential to maximize profits and avoid taxation.
The simple holding of Intellectual Property in an IBC can account for significant profit increase, tax savings and minimization of reporting and regulatory compliance.
Precious Metals, Land, Improved Property, Valuable Collections, Shares of Beneficial Interest can be held by an offshore company. This will facilitate transfer of ownership and translation of ownership to heirs if the trust is not in use. Look at the Features of An IBC and see how they apply to you and your financial planning approach. It is always good to consult with professionals in your home jurisdictions. Unfortunately, the so called professionals are limited in their scope of understanding of business or the need to look offshore for solutions.
An offshore company holding title to machinery and equipment can lease the same to a company in your jurisdiction where profits for the operation are maintained offshore, unreported and untaxed.
A loan and interest from an offshore company can be collected from a company in your jurisdiction. The earnings can remain offshore.
Register your ship or yacht abroad for minimum tax and liability. Operation costs are minimized when using personnel from developing countries. There are other benefits that accrue. Such benefits become obvious as you review the laws and regulations related to vessel registration in Seychelles and other jurisdictions and the
Companies Act and its ramifications for offshore operations.
Setting up your consultant service in an offshore jurisdiction will enhance your visibility and increase your earning potential by minimizing taxes and operating expenses
If you are operating offshore, or have set up offshore you can provide services worldwide allowing income to be reported from an offshore company. Ease of operation, minimal accounting and retention of earnings can all work toward maximizing income. The individual is in actuality an employee of the offshore company.
If you or your company have an offshore contract and must hire people to fulfill the details of the agreement, then it might pay to retain the employees or consultants where there is minimal or no need for payroll taxes, etc. The employee might benefit also from earning offshore.