Frequently Asked Questions
(International Business Companies)

Topics
International Business Companies (IBCs)
European Corporations
Belize IBCs
Functionality and Structure of an IBC
International Corporate Bank/Settlement Account for Payouts
Belize Banking
Everyone's Main Concerns with International Banking

*FAQ (International Trusts)

International Business Companies (IBCs)

What is an International Business Company, or IBC?
An entity recognized by law as a separate "person" with limited liability. It is essentially an international corporation that has the option to sell shares, the right to sue and be sued, and has perpetual existence.
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How are IBCs used?
They may be used to own and operate businesses, issue shares, bonds or otherwise, raise capital, guarantee obligations, hire employees, buy goods and services, sell goods and services, make contracts, rent office space, maintain checking and savings accounts, open brokerage accounts and maintain retirement plans for employees. Although most international corporations are private and closely held, some are publicly traded on major stock exchanges.
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What does a corporate search under an IBC reveal?
A corporate search will reveal the name of the corporation, the date of existence, amendments, and any other publicly filed document. Different jurisdictions share different information and some share less than others. Under Belize law for example, there is no requirement that the names of corporate officers, directors, or shareholders be filed in any public registry. Such information, therefore, remains confidential.
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European Corporations

Why should I choose a European Corporation?
One form of an international business company, or IBC, is an EU Corporation. An IBC formed in the European Union can act as the governing entity for a merchant account setup anywhere in the EU. Visa/MasterCard regulations state that all merchant accounts must be setup under and governed by a corporation within the country of the processing bank. Our Direct International Merchant Account Solutions are setup through banks we have direct relationships with in the EU. Therefore, any merchant processing directly through the acquiring bank will need to incorporate in one of the EU jurisdictions we offer incorporations in.
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Belize IBCs

Why should I choose a Belize IBC?
Belize is a preferred tax haven for the following reasons:

Belize is an independent country. Colonized by the British and thereby deriving itself from British Commonwealth and having its law based on British Common Law, Belize is one of the most stable democracies in the world.

Belize has a highly developed and reliable international communications system partly because of its large amount of tourism, and its main language is English.

Belize is a desirable place to visit or retire. It can be reached by air or auto...it's two hours south of Cancun on the Caribbean coast.

Belize is an established international corporate banking and financial center.

There are no currency exchange controls or restrictions on the movement of money entering or departing the country.

Belize does not tax income generated outside of the country, whether by local or international corporations. It also has no tax treaty with the U.S. or Canada.

Belize Law protects the anonymity and privacy of banking and corporate operations. Specifically, corporate shareholders are not listed publicly. Moreover, violations of privacy are punishable by jail time and heavy fines.

Belize has not signed the U.S. Mutual Legal Assistance Treaty (Belize is one of few countries left that has not).

*No other jurisdiction has proven that it will back up its privacy laws as strongly as Belize. The only challenge to Belize' sovereignty came in 1995 when the Supreme Court of Belize successfully kept the country's privacy laws from being breached by the United States Securities and Exchange Commission.
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Functionality and Structure of an IBC

What are Registered Shares?
Registered share certificates indicate the name of the owner on the document. The name of the shareholder is also recorded in the internal corporate records of the foreign company. Although the registered owner is recorded in the corporation's internal records, no public registry of shareholders is maintained. The share registry is an internal corporate document available only to directors, officers, and shareholders under conditions specified in the jurisdiction's corporate statute.
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What is a Registered Agent?
An agent established on behalf of the foreign company who is required to ensure that the corporation has an assigned representative at a known address to receive all service of process (legal notices) on its behalf. The registered agent forwards these documents to the address of record for the corporation. Every corporation must have a legally registered agent. We provide this as a service, which is included in your corporate structure costs.
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What is a Nominee Director?
Sometimes also referred to as a Resident Director, a Nominee Director is an individual designated, or nominated, as the director of a corporation to essentially take on the liability in place of the actual individual(s) running the corporation. Every IBC must have a Board of Directors. The Board may consist of one person or many people. For instance, the founder of the IBC may appoint himself/herself as the Director and sole officer of the corporation. However, most IBCs are formed with a Nominee Director.

The nominee may be, but does not have to be, an individual who works and/or resides in the country where the IBC is formed. The nominee may be used to sign (contracts, loans, bank applications, etc.) for the IBC should the founder not want his/her signature to be connected with the corporation. The nominee director has no knowledge of the IBC's affairs or accounts, cannot control or influence the IBC, and will not act unless instructed to by the founder. In the case of a European IBC setup for the purposes of a Direct International Merchant Account, the nominee, or resident, director must reside in the country of the processing bank and be willing to sign the merchant application as well as provide proof of residnency through his or her utility bill and identification.
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Corporate Bank/Settlement Account for Payouts

What Bank Account should I use with my International Merchant Account?
An already existing U.S. Bank Account can be used to accept the funds resulting from the credit card transactions of an international merchant account. However, we provide International Corporate Bank Accounts to which a merchant can have funds from their credit card transactions sent as well. These corporate accounts securely hold funds while offering many of the benefits U.S. bank accounts offer, including online banking & international debit cards for easy access to funds.
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How often will I Receive Payment for Transactions Processed Through my Merchant Account?
Funds will be transferred weekly, unless otherwise stated at the time of underwriting, from your merchant account into the account of the bank that you designate for settlement of funds. For Direct Merchant Accounts setup through IBC Merchant Accounts, you will receive Daily Payouts to your International Corporate Bank Account!
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Belize Banking

How do I know the Belize bank you use is a strong bank?
The bank we use in Belize has been in operation for over 10 years. They are the largest International Settlement Bank in Belize and presently control in excess of eighty percent of the international corporate banking conducted in Belize.
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Everyone's Main Concerns with International Banking

Is it Legal to have an International Corporate Bank Account and/or Brokerage Account?
This depends on the jurisdiction. It has never been illegal for Americans or Canadians to maintain bank accounts or investment banking accounts internationally. Similarly, most countries allow their citizens to own international corporate banking accounts. You should consult a legal expert in your own jurisdiction to find out whether your resident country allows this, and if so, how you would report it.

Earnings in an international corporate bank account are generally considered tax-free in the country where the bank or brokerage account is located. International investors, including U.S. and Canadian residents, are expected to voluntarily report any income earned outside their country (offshore). International settlement banks do not cooperate with, or provide reports to the IRS or Revenue Canada on your income earned from any form of investment, so it is entirely up to you to comply with the reporting requirements of your jurisdiction. Questions surrounding international corporate banking legalities usually arise when a U.S. or Canadian citizen fails to report offshore income to the IRS or Revenue Canada at tax time.

In some cases, there are ways of structuring your affairs using international business companies or trusts that can be used for tax reduction or deferral. The laws in each jurisdiction differ, so you should consult a local tax advisor to find out how.
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How do I utilize international settlement bank account funds in my country?
You can wire money directly from your international corporate banking account or brokerage account into your domestic account. The international settlement banks will allow you to wire transfer through an online international corporate banking system much like the ones you use with your local banks.

International settlement banks and brokerages issue Visa/MasterCard debit cards adn secured credit cards to international corporate bank account holders. These cards may be used to make purchases from merchants or to withdraw cash from an ATM.

The international business company (IBC) or trust may purchase real estate, cars, businesses, etc. Typically, the founder/client acts as an agent of the IBC or trust to purchase assets on its behalf. By this, assets are held under a corporate or trust name, thus helping to protect the client's privacy.

The client may borrow funds from the international corporation or trust. The IBC or trust is a seperate legal entity from an individual and may make loans to individuals or other entities.
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Are my Deposits Insured?
International settlement banks do not carry insurance on non-resident accounts. However, most of the international settlement banks are regulated by a central bank of the country they are in, which sets capital ratios and liquidity requirements in line with International Corporate Banking Standards.

For instance, the capital ratios and liquidity requirements of the bank we use for our clients in Belize are set by the Central Bank of Belize.
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Are there any International Treaties Regulating Depositors from the U.S. signed with countries you use for your clients' international corporate bank accounts?
No. However, it is generally the case that, if the Court of any particular country decide that any depositors funds are the proceeds of crime, they are still bound by the laws of their country to release the source of funds. However again, the Privacy in countries like Belize remains strong for law-abiding clients.
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How long does it take to get an International Corporate Bank or Settlement Account opened?
Once your international corporation is setup, we will send you the international settlement bank application along with detailed instructions on completing the application process. You will then fax us the complete package of documents so that we can review them for any errors or missing information. After you make the necessary changes/additions and send the original documents to the bank, the account can be opened the same day they receive the documents as long as all of the international settlement bank's requirements are fulfilled.
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Can you help the average client or merchant minimize or legally reduce their taxes?
No. We provide corporate structures for merchant processing that maximize access to international investments and expand the scope of a foreign company's credit card processing abilities. We believe taxes are the legitimate way for any community to provide for its basic social services. Some countries like the U.S. and Canada have adopted a tax exploitation policy towards their citizens. For citizens of these jurisdictions, there are minimal opportunities for legal tax reduction by use of international structures. You should consult tax experts in your country of residence for advise on these matters. Your compliance with the tax laws in your country is entirely your responsibility.
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