Examples of Panamanian Companies
International Business Company (IBC)
International Business Company formation is one of the most popular choices for organizations incorporating Panama and similar jurisdictions. IBCs in Panama do not pay taxes on income that they generate outside of the country.
Panama International Business Company also known as a Company or Corporation must be composed of three (3) Directors, which also occupy President, Secretary, and Treasurer’s positions. This person can be of any nationality. The client can appoint their own directors or choose the nominee director service (meaning that the Directors will be members of Delvalle & Delvalle).
International Business Company (IBC) is also composed of 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 nominatively or to the bearer, and they can be transferred 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 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 a Panamanian LLC is a bit different than the structure of an IBC. These small differences, however, can have a big impact 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 and the type of business, and the level of security and confidentiality needed.
A law firm such as Delvalle and Delvalle can look at your organization’s details to determine which approach works best.