Should I be a signatory on my IBC’s Bank Account?

When setting up an International Business Company one will need to consider who should be the signatory on the IBC’s Bank account.


Generally speaking if an IBC is seen to be managed and controlled from onshore it may end up being made liable to declare & pay taxes onshore, on its worldwide income.


To reduce the possibility of it ever being alleged that you are controlling the IBC it may not be advisable for you to be the sole signatory on the IBC’s bank account. This is because, if you are sole signatory, it is arguable that you have complete control over the IBC’s funds and that you are effectively, at law, in control of the IBC.


Whilst, from a taxation/legal viewpoint, the most cautious approach might be to appoint the IBC Director as the sole signatory, another option might be to nominate yourself and the Director as co-signatories (meaning that two signatures would be required to move funds).


For some persons it may be preferable however that you not be a signatory to the company account at all.


One should always seek local legal/financial advice in respect of such matters as reporting requirements can and do differ from country to country


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