The IBC Act (International Business Companies Act), 1984 was a statute of the BVI (British Virgin Islands) that legalized the incorporation of International corporations/businesses. After the adoption of the BVI IBC, it was considered as the model status in the international companies and is also the basic building block of the international financial business industry. Basically, an IBC is a private organization that is relieved from taxation and is suitable almost for any international business activity.
BVI IBC has a flexible organizational structure, maintains a strict provision for confidentiality and hence are easily operated, controlled and maintained. The IBC Act is made especially for the requirements of international businesses. The administration of an International Business Company is conducted either in the BVI or in any other jurisdiction. There are many benefits of British Virgin Islands over many other international financial centres. One of the major benefits is that US dollar is the official currency of BVI and hence the local government doesn’t supply any artificial manipulation of money. Another benefit of BVI IBC is that it is a British Overseas Territory, thus has a better political stability.
Moreover, it is an independent judicial system and its laws and regulations are regularly designed in consultation with the private sector. As per a new act, BVI IBC is now a BVI Business Company (BVI BC) that means the differences between offshore and onshore legal entities has been removed and hence continues to be to benefit all the substantial advantages along with taxation.