Panama International Business Company (IBC)
Panama is an attractive destination for international investors looking to set up a business or invest in the country. One of the most popular ways to do this is by incorporating a Panama International Business Company (IBC). A Panama IBC is a legal entity that offers favorable treatment for foreign investors looking to conduct business overseas. In this article, we will explore how a Panama IBC works and how Delvalle&Delvalle Panama Law Firm can help you set up your own Panama IBC.
What is a Panama IBC?
A Panama IBC is a legal entity that is created under the authority of Panama’s Law 32 of 1927. It is a juridical person with a capital stock divided into shares, and its shareholders are only liable to the extent of their contributions. A Panama company is considered an IBC when it doesn’t conduct business in Panama, which means it is not subject to taxation on income earned outside the country. This makes it an attractive option for investors looking to conduct international business.
How Does a Panama IBC Work?
The process of setting up a Panama IBC is relatively straightforward. Here is a step-by-step guide:
- Choose a Name: The first step in setting up a Panama IBC is to choose a name for the company. The name should be unique and not already registered in Panama. It must have the abbreviation S.A., Inc., or Corp. at the end of the name.
- Choose Directors and Shareholders: A Panama IBC must have at least three directors and one shareholder. These can be individuals from any country.
- Register the Company: Once the directors and shareholders have been chosen, the next step is to register the company with the Panama Public Registry. This process involves submitting the company’s incorporation articles, including details such as the company’s name, purpose, board of directors’ names and addresses, and share capital.
- Registering the Panama IBC in the fiscal authorities as a company that do not do business in Panama.
- Open a Bank Account (optional): To operate a Panama IBC, it is not necessary to have a bank account in Panama, but if a bank account needs it, Delvalle&Delvalle Panama Law Firm can assist with this process and introduce clients to reputable banks in Panama.
- The Panama IBC must maintain accounting records. This records must be done and seal by a licensed accountant, that not necessary must be from Panama. The resident agent (Delvalle & Delvalle) must maintain copy of the balances. Balances must be submitted to the resident agent once a year.
- Finally, it is necessary to file annual reports with the Panama Public Registry to maintain the company’s good standing.
Benefits of a Panama IBC
There are several benefits to incorporating a Panama IBC, including:
- Taxation: As mentioned earlier, a Panama IBC is not subject to taxation on income earned outside of Panama.
- Privacy: Panama has strict privacy laws that protect the confidentiality of a company’s directors and shareholders. This means that it is possible to conduct business anonymously and maintain confidentiality.
- Asset Protection: A Panama IBC can be used to hold assets such as real estate, stocks, and bonds. This can provide asset protection against legal action and creditor claims.
- Ease of Incorporation: Panama has a simple and straightforward process for incorporating a company. This means that it is possible to set up a Panama IBC quickly and easily.
Delvalle&Delvalle Panama Law Firm: Your Partner for Panama Legal Services
Delvalle&Delvalle Panama Law Firm is a leading provider of Panama legal services. We specialize in helping clients set up Panama IBCs, private foundations, limited liability companies, and more. Our team of experienced lawyers can assist with every step of the process, from choosing a name for the company to filing annual reports. Here are some of the services we offer:
- Panama IBC Incorporation: We can help clients set up private foundations, which are legal entities used for holding and protection of assets and family purposes.
- Panama Private Foundations: We can help clients set up private foundations, which are legal entities used for holding and protection of assets and family purposes.
- Limited Liability Companies (LLC.): We can help clients set up limited liability companies in Panama. Limited liability companies offer several benefits, including limited liability for shareholders and favorable tax treatment.
- Introduction to Bank Accounts: We can introduce clients to reputable banks in Panama and assist with opening bank accounts.
- Corporate Governance: We can assist with corporate governance matters, including drafting bylaws and shareholder agreements, and holding board meetings.
- Legal Consultation: We offer legal consultation services to clients who are interested in setting up a Panama IBC or need legal advice on other matters related to Panama law.
Why Choose Delvalle&Delvalle Panama Law Firm?
There are several reasons to choose Delvalle&Delvalle Panama Law Firm for your Panama legal services, including:
- Experience: We have over 17 years of experience in providing Panama legal services to clients from around the world.
- Reputation: We have a reputation for providing high-quality legal services and excellent customer service.
- Multilingual Team: Our team includes lawyers who speak several languages, including English, and Spanish.
- Tailored Solutions: We provide tailored solutions to meet our clients’ specific needs and objectives.
- Competitive Pricing: We offer competitive pricing for our legal services, and we are transparent about our fees.
Contact Delvalle&Delvalle Panama Law Firm Today
If you are interested in setting up a Panama IBC or need legal advice on other matters related to Panama law, contact Delvalle&Delvalle Panama Law Firm today. We offer a free consultation to discuss your needs and objectives and can provide you with a tailored solution to meet your needs. Contact us today to schedule your consultation.
Panama International Business Company
- General Information
- Why Panama?
- Shelf Corporations in Panama
- Plans and Additional Services
- Types of corporations in Panama
- Steps to incorporate an IBC
- Bearer and registered shares transfer
- How to dissolve a Company
- Resident Agent’s Functions and Requirements
- Amendment of the article of Companies in Panama
- Companies in Panama and Stock Capital
- Aspects of Law 32
- More information about IBC Companies