There are currently about 300,000 IBC,s registered and this figure increases by approximately 2,000 per month.

An IBC is a corporate entity which is totally exempt from BVI income tax and stamp duties. It is very flexible in its nature making it an ideal corporate vehicle for international trading , asset protection, investment management, trustee arrangement and e-commerce.

The basic procedures for incorporation are:

• The words "Limited", "Corporation", "Incorporated", "Société Anonyme", "Sociedad Anonima" , or their usual abbreviations must be part of the name.
  
  
• The Government registration fee is
  US$300 for authorised share capital of less than US$50,000;
  US$350 if authorised share capital consists of no par value shares or
  US$1,000 if the authorised share capital is greater than US$50,000.
  
  
• The memorandum of association must contain the name and address of the BVI registered agent.

An IBC is prohibited from carrying out any business with persons residing in the BVI or own an interest in real property in the BVI.

However the following are not construed as carrying on any business in the BVI.

• Maintaining a bank account.
  
  
• Using the services of a professional firm.
  
  
• Maintaining accounting records.
  
  
• Holding meetings of shareholders and directors.
  
  
• Holding a lease of property for use as an office.
  
  
• Holding shares or other securities in another BVI company.

Advantages of IBC's

Apart from being tax free, IBC's have many other advantages:

• Only one founder, shareholder, and director is required, which can be a corporate entity.
  
  
• The minimum issued and paid up capital can be one share.
  
  
• Bearer shares can be issued, as well as shares with variable voting rights and they can acquire their own shares.
  
  
• Shares can be denominated in any currency and have no par value.
  
  
• There is no requirement to file any information with the Registrar of Companies relating to shareholders, mortgages and charges, deeds and other instruments of transfer.
  
  
• There is no requirement to disclose any particular information on the Company's letterhead.
  
  
• Flexibility to re-domicile. Continuation into and out of the BVI are very simple procedures under the IBC act.
  
  
• There are no requirements to prepare financial statements or appoint auditors.