Panama IBC Corporations
15 Advantages of a Panama IBC (International Business Corporation)
The process of forming a Panama IBC is a relatively straightforward, simple and cost-effective course of action, and the results can be extremely beneficial for your operations.
The most common form of entity is known as an International Business Company (IBC), and the Corporation Law of Panama was drafted with special characteristics to streamline the registration, operation and management of these organizations for both nationals and foreigners. This has made Panama a thriving business hub that provides an ideal environment for a variety of investment vehicles.
The benefits of a Panama IBC, though, go beyond the ease of setup and management. The list below outlines many of the advantages of forming a Panama company.
No Currency Restrictions
Personal Presence is Not Required
Reasonable reporting requirements.
The territorial source principle is the basis of taxation in the Republic of Panama. This means that any income that is obtained from operations outside of the country of Panama is not taxable. The client must consult with a legal or tax specialist in his country of residence or nationality to comply with his local tax responsibilities.
No Need to Deposit or Pay Registered Capital
The registered capital for the corporation is simply a nominal figure that projects the estimated value of the entity and does not need to be paid or deposited.
No Nationality Restrictions
The directors and shareholders of the company can be members of any nationality and residents of any country.
Low Incorporation Costs
Incorporation costs in Panama are competitive when compared to other jurisdictions.
Commercial License Not Required for Extraterritorial Activities
Corporations that engage in business outside of Panama are not required to obtain a commercial license or operation notice (this is called “Aviso de Operacion” in Panama).
Fast Incorporation Time Frame
The approximate time frame to establish a corporation in Panama is four to five business days.
The Shareholders’ Identities are Private
The identities of corporation shareholders are kept strictly confidential and are not registered at the Panama Public Registry. There is a beneficial owner registry of companies, however, it remains private and guarded by a superintendence in case they are required by a Panamanian authority.
Share Certificate Security
Share certificates are issued in private documents, and the officers and directors of the corporation are not required to be shareholders.
Low Maintenance Costs
Annual maintenance costs for a Panama IBC, such as resident agent fees and annual corporate taxes, are approximately USD 650.
Shareholder and director meetings can be held in the Republic of Panama or they can be held in any other country.
Panama offers a globally recognized financial infrastructure that values and safeguards financial privacy.
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Advanced Tower, 1st Floor
Panama City, Panama
+507 264.5570 | 264.5931