IBC TERMS AND INFORMATION
We at www.Finor-Group.com believe that educating oneself is the key to successful offshore structuring. Other offshore services providers refrain from publishing information or providing in depth explanations to their clients stating that their structuring method is a trade secret. At Finor-Group.com this is not true. We know the importance of educating clients so that they may reap all of the possible benefits from the implementation of their offshore structure. We have taken the time to define some commonly used offshore expressions which are related to IBC's in order to provide you our clients with more knowledge. Remember the old saying "Knowledge is Power".
Expressions Defined
What Is A Corporation?
A corporation is an entity recognized by law as a separate "person" with limited liability. A corporation has the option to sell shares, the right to sue and be sued, and has perpetual existence.
What Is An IBC or Offshore Corporation?
An IBC (International Business Company) is a usually tax-exempt corporation which can do business all over the world except in the country where it has been incorporated.
How Are Offshore Corporations Used?
Offshore corporations 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, and maintain retirement plans for employees. Although most offshore corporations are private and closely held, some are publicly traded on major stock exchanges.
What Are Articles Of Incorporation?
The Articles of Incorporation is the document which establishes the corporation and contains basic information such as the name, share structure, and purpose of the corporation.
What Are By-Laws?
The By-laws, or in some jurisdictions "Articles of Association", are rules the corporation creates for its shareholders, officers, and directors. By-laws are adopted by the Board of Directors as one of the first organizational steps in setting up a corporation. Upon instruction, we can adopt a standard set of By-laws for a new corporation. Unlike Articles of Association, By-laws are usually maintained internally but may be publicly filed if requested.
What Does A Corporate Search Reveal?
A corporate search will reveal the name of the corporation, the date of existence, amendments, and any other publicly filed document. Under many offshore jurisdictions, there is no requirement that the names of corporate officers, directors or shareholders be filed in any public registry. In other jurisdictions, nominee officers can be used. Therefore, the actual beneficial owner's identity remains a secret.
What Are Bearer Shares?
Bearer share certificates do not indicate the name of the owner. The certificate is endorsed in blank such that the person having physical possession of the document is the owner. Bearer shares facilitate the transfer of assets because transfer of ownership is accomplished simply by the transfer of the certificate.
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 company. Although the registered owner is recorded in the corporation's internal records, no public registry of shareholders is maintained in Panama. The share registry is an internal corporate document available only to directors, officers and shareholders, under conditions specified in the jurisdiction's corporate statute.
What Are Off-The-Shelf Companies?
Off-The-Shelf Companies are ready-made, never used corporations that have been created to meet a client's immediate needs.
What Is A Registered Agent?
A Registered Agent 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 of the corporation.
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