Liveaboard and an IBC

[Geminidawn]

I'm looking at putting the land to my rudder and setting sail to where ever the wind takes me I am also looking to do some work and maybe some chartering along the way. To keep everything legal I was thinking on setting up as an IBC preferably in the same country I'll get my boat registered. What is your opinion on this as I do not have much experience with IBC's?

[capt_douglas]

IBC Baseball League?
IBC Root Beer?
IBC Bank?

IBC = ??

[sck5]

its root beer where i come from but they also make a pretty good cream soda

[skipmac]

Well in my business IBC is intermediate bulk container but doubt that's what the OP means.

Maybe International Business Company?

[Geminidawn]

Originally Posted by skipmac

Maybe International Business Company?

You are correct Sir! Sorry I didn't make that clear in the beginning!
An International Business Company is pretty much an Offshore Business there are many small countries offering this as a service :
International business company - Wikipedia, the free encyclopedia
You still hold the same legal status as a Limited Company but with a lot less paper work.
Just wondering how well these are recieved internationally and are they worth the paper they are written on? Anyone?

[Hud3]

It's a well-accepted principle. As long as the company you create isn't into tax scams or money-laundering it will be perfectly legal and acceptable anywhere. Many "offshore" corporations are registered here in Nevis. It's a major part of the local economy. In the States, Delaware does a thriving business registering corporations set up for owning boats, etc. No sales taxes, either place. Just fees to set it up and then an on-going annual fee.

[skipmac]

Like Hud says, well accepted principal. I would say that almost all of the megayachts are registered through some type of holding companies and most are also registered and flagged in one of the countries that offer what are called "flags of convenience".

For yachts the Cayman Islands seem to be most common country in my area but do see some registered in Panama. Cargo ships are frequently registered in Panama and Liberia.

[Geminidawn]

Why isn't everyone doing it then? What are the negatives?

[stillbuilding]

Well, it costs a bit of $$, energy and time to do, requires survey, annual maintenance fees. An maybe most people are stuck in the grind of living in one country.

[WILDKACTUS]

It's perfectly legal and a good way to go for a cruiser.
I run my business this way and has been working very well for the past 10 years.

one way to do it is to register the company in say belize, Nevis and do your banking through Hong Kong or Singapore, with a virtual office. this way you have a cheapish IBC with first rate banking services.

Happy Cruising
wildkactus.

[osirissail]

The fees, annual costs, and local co-ownerships requirements in some countries makes the hassles of registering your small (under 100ft/30m) vessel not really worth the trouble. Of course there are exceptions, which according to another thread is rather difficult and complicated in Ireland. See the thread: http://www.cruisersforum.com/forums/...t+registration

[Geminidawn]

Originally Posted by osirissail

The fees, annual costs, and local co-ownerships requirements in some countries makes the hassles of registering your small (under 100ft/30m) vessel not really worth the trouble. Of course there are exceptions, which according to another thread is rather difficult and complicated in Ireland. See the thread: http://www.cruisersforum.com/forums/...t+registration

Many thanks but chartering is way far down the line and a small part of the work I'll be offering. Hence I want a business entity that would cover the Boat building, instruction and repairs, Small craft survey and Charter services and still be able to offer these services without getting into any trouble in the countries I'm visiting.

[osirissail]

Originally Posted by Geminidawn

Many thanks but chartering is way far down the line and a small part of the work I'll be offering. Hence I want a business entity that would cover the Boat building, instruction and repairs, Small craft survey and Charter services and still be able to offer these services without getting into any trouble in the countries I'm visiting.

Simply put, you cannot legally do work for money in any country other than your home country unless you have work permits and any needed licenses for each country you intend to be physically present in while doing work for money. Or, in other words, any "face to face" exchange of services for money in a "foreign" country requires the proper licenses and work permits.
- - Every international corporation with a presence in a country has secured the licenses and work permits needed to sell/work in that country. This can be very expensive and involve considerable paperwork and sometimes payments (under the table) to appropriate officials.
- - That said, there are plenty of "pirate" businesses, especially chartering, operating all over the world. The trick is not getting caught or drawing attention to yourself/business. The minute a "local" thinks you are horning in on his turf or perceives you are taking money he should be getting, you are in for a world of trouble.
- - In some Caribbean countries the situation is so onerous that even major international corporations avoid having a business presence in the country. There simply is not enough business to be generated to be worth the hassles.
- - The world is not a simple place anymore - bureaucracy and politicians/warlords, etc. have learned that there is easy cash in international commerce.
- - There are many threads on CF that address the various aspects of "working while cruising" and if you want to settle in a particular country -and- start a business that will employ locals who would otherwise be unemployed then generally your operation will be welcomed with open arms and the open hands of the local politicians and officials.

[Geminidawn]

Originally Posted by osirissail

Simply put, you cannot legally do work for money in any country other than your home country unless you have work permits and any needed licenses for each country you intend to be physically present in while doing work for money. Or, in other words, any "face to face" exchange of services for money in a "foreign" country requires the proper licenses and work permits.
- - Every international corporation with a presence in a country has secured the licenses and work permits needed to sell/work in that country. This can be very expensive and involve considerable paperwork and sometimes payments (under the table) to appropriate officials.
- - That said, there are plenty of "pirate" businesses, especially chartering, operating all over the world. The trick is not getting caught or drawing attention to yourself/business. The minute a "local" thinks you are horning in on his turf or perceives you are taking money he should be getting, you are in for a world of trouble.
- - In some Caribbean countries the situation is so onerous that even major international corporations avoid having a business presence in the country. There simply is not enough business to be generated to be worth the hassles.
- - The world is not a simple place anymore - bureaucracy and politicians/warlords, etc. have learned that there is easy cash in international commerce.
- - There are many threads on CF that address the various aspects of "working while cruising" and if you want to settle in a particular country -and- start a business that will employ locals who would otherwise be unemployed then generally your operation will be welcomed with open arms and the open hands of the local politicians and officials.

Many thanks for your informative reply. Low key building and repair I can do but with the tuition and the surveys they'll all have to be above board as insurance is involved. True in what you say that the world is not a simple place anymore and sadly so. It's a simpler world I'm sailing for.

[osirissail]

The key is staying low and not intruding on somebodies turf. In most islands the operations, if small and employ locals will be enjoyable and much simpler that trying to operate out of a major 1st world country. The little countries have very few extraneous laws and regulations and never heard of occupational safety, environmental impact studies, and a huge host of nuisances related to too many bureaucrats with not enough to do except hassle honest businessmen.
- - You still need to learn the "lay of the land" and how things are done and who is important and who isn't. There is a Jimmy Buffet rock opera called "Don't Stop the Carnival" that pretty much sums up what operating a business in the islands is all about.