A Limited Liability Company (LLC) is a business corporation in which the social capital is divided in social shares with a value equal to or different from that of the partners. Its main and most important characteristic is that the responsibility of the partners 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, as well as 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 in effect; The Law number 4 of January 9th 2009, which has introduced favourable modifications in to it.
In a similar fashion to Corporations they may be formed by people of any nationality and may be used as offshore companies dedicated to the execution of businesses outsider of Panamanian territory.