What is a Limited Liability Company (IBC)?
A Limited Liability Company (LLC) is a business corporation in which the social capital is divided into social shares with a value equal to or different from that of the partners. Its main and most important characteristic is that the partners' responsibility is restricted exclusively to the capital provided by each one.
This legal entity is characterized by combining certain characteristics of the corporations with that of the associations between people and adopting characteristics of other legal entities of non-corporative legal entities.
The Panamanian Limited Liability Companies (LLCs) were regulated by Law 24 of 1996. Recently a new law entered into effect; Law number 4 of January 9th, 2009, which has introduced favorable modifications into it.
In a similar fashion to Corporations, they may be formed by people of any nationality. They may be used as Panamanian companies dedicated to the execution of businesses outside of Panamanian territory.