All the Protection of an Offshore Trust with Greater Flexibility at Lower Cost When most North American think of sheltering their wealth outside the country, they are apt to think of an offshore trust. And there is one controlling reason why attorneys and financial planners tend to recommend these trusts: Trusts are disturbingly expensive to create and result in huge fees for the lawyers and financial planners. An international business company can be set up for a fraction of the cost of most trusts, and provides equal or even better protection with far greater flexibility. A New and Growing Form of Total Asset Protection Since the Bahamian government enacted The International Business Companies Act in January 1990, more than 30,000 IBCs have been formed in the Bahamas. An IBC offers a corporate structure, which is a familiar and comfortable form for most business and professional people. Most IBCs will operate as regular investment or trading companies. It is possible, however, for a professional advisor to produce a "designer" company within the provisions of the Act. With a little effort, IBCs can easily be adapted so that they resemble and function as mutual funds, limited partnerships, limited or unlimited liability companies, or charitable associations. Bearer Shares Permitted The shares of an IBC may be with or without par value. They may be registered, or they may be Bearer Shares - the form of sock best suited to guarantee the owner's anonymity. A Bearer Share stock certificate is issued to the Bearer and may be redeemed by anyone who has it in his or her possession - just like cash. The person who has possession of the Bearer Shares of an IBC is legally the owner of the IBC. In addition to the other safeguards under Bahamian law, this makes it almost impossible for anyone to track down your ownership. It also means that when the Bearer Shares are in someone else's possession, you can truthfully testify that you do not own the IBC or its assets. Other Advantages of IBCs In the Bahamas, an IBC and its shareholders are exempted from the payment of business license fees, income taxes, corporation taxes, capital gains taxes, or any other taxes on income or distribution in connection with any transaction to which the IBC or the share holder is a party. No estate, inheritance, succession, or profits tax is payable in the Bahamas with respect to its shares, debt obligations, or other securities. No stamp duty is payable on a transfer of property to or by an IBC or transaction in respect of shares, debt obligations or other securities of an IBC or any transaction relating to the business of an IBC. The minimum number of subscribers is two and of directors is one. Names of shareholders are not recorded in the public registry. No filing of financial statements or annual returns listing shareholders is required. Meetings of directors and shareholders may be held by telephone or fax or other electronic means. There is a guaranteed tax exemption for a minimum of 20 years. The IBC is not subject to Bahamian currency exchange control regulations. Government registration and annual fees are low.