Examples of Offshore Companies
If you have thought about forming an offshore company, then you might want to learn about a few examples that can help you decide whether the advantages of forming an offshore organization will benefit your business. Panama offers numerous benefits that could help your organization reach new levels of success. Choosing the best offshore formation type, however, could improve your business' chances of success by helping you earn more money and retaining profits.
International Business Company (IBC)
International Business Company formation is one of the most popular choices for organizations incorporating in Panama and similar offshore jurisdictions. IBCs in Panama do not pay taxes on income that they generate outside of the country.
Panama International Business Company also knows as Offshore Company or Corporation, must be composed of three (3) Directors, which also occupy the positions of President, Secretary and Treasurer. This person can be of any nationality. The client has the option of appointing their own directors or choosing the nominee director service (meaning that the Directors will be members of Delvalle & Delvalle).
International Business Company (IBC) is also composed by shareholders which names are not registered in any public documents. You only need to record them in the business' Stocks Register Book, which can be kept anywhere in the world. The certificates of shares can be issued nominative or to the bearer and they can be transferred in a privately.
IBCs can own assets, including bank accounts, securities and real estate in Panama. By allowing the organization to own assets, individual stockholders can avoid the responsibility of maintaining these assets on their own. Also, shareholders in the IBC are only responsible for the amount of money they have invested in the company.
Limited Liability Company (LLC)
A Limited Liability Company offers many of the same advantages as an IBC, however the structure of an Offshore LLC is a bit different than the structure of an IBC. These small differences, however, can have big impacts on how your organization operates. For example Panama Limited Liability Companies (LLC) must be formed with a minimum of two (2) partners which names and participation fees will appear publicly in the Articles of Incorporation of the LLC. The participation fees cannot be transferred privately. A Board of Directors is not an enforced requirement, and only a minimum of one (1) administrator is required.
The type of business entity better for you will depend on the client’s nationality as well as the type of business and the level of security and confidentiality needed.
A law firm such as Delvalle and Delvalle can look at the details of your organization to determine which approach works best.