Understanding the Uses of A Belize IBC Company
Basically, IBCs or International Business Companies can be instituted in Belize for many reasons and they certainly can give distinct advantages to business owners and investors that partake in them. Following are some of the most common applications of IBCs in Belize.
Asset Protection and Planning
Offshore trust agreements are probably most beneficial to individuals and corporate entities that wish to protect their assets against the long reach of their local courts and unexpected but crippling litigation. IBCs are also useful if parents would like to make sure that their children will inherit a sizeable nest egg after their death (estate taxes can significantly reduce inheritance). Easy setup is available for these, especially in terms of foreign trusts, which are available to IBCs in Belize.
International trading definitely entails tax. For some trading companies, this may be a big problem. In order to maximize profit and improve trading agreements, offshore trusts can make trading entirely tax-free. Furthermore, the goods purchase are shipped directly between the country of origin and the countries to receive the goods, thus administrative costs are reduced and economies of scale are achieved.
IBCs have access to brokerage accounts through which they can acquire, maintain and easily manage a sizable and varied portfolio of investment instruments. Significant tax exemptions and increase in profit is more than possible. International investments are also efficiently handled even under different jurisdictions.
There are other uses for IBCs in Belize. For instance, through an IBC, an individual or a company can offer consultancy and professional services in exchange for payments in agreements. IBCs are given the capacity to receive maximum profit and significant tax exemptions even if they’re not home-grown companies.
IBCs in Belize are also capable of becoming international sub-licensees for intellectual property rights such as patents, copyrights and royalties. This is amazing, considering that IBCs are not native to Belize and, in other territories, wouldn’t have been granted such a privilege.
Moreover, IBCS can accumulate funds through purchasing capital equipment and leasing the particular equipment to a company in a high-tax nation. This way, one can reduce tax duties.