Information Guides

Understanding Panama IBC Options

Understanding Panama IBC OptionsIf you have heard that forming a Panama IBC could help your business reach its goals, then you should learn more about these organizations and the benefits that they offer.

What is a Panama IBC?

A Panama IBC is a company that incorporates Panama to take advantage of various benefits, such as lower tax burdens and fewer operational restrictions. Panama IBCs are incorporated in Panama’s jurisdiction, so they are allowed to engage in business in Panama as well.

Panama IBC might generate revenue by selling products in Europe, Asia, Australia, North America, or South America (other than Panama, of course). If you can find clients in Antarctica, you could do business with them. As long as an IBC doesn’t make money by selling goods or services in Panama, you don’t have to worry about paying taxes in Panama even if your profits are deposited in a Bank in Panama.

Panama isn’t the only jurisdiction that allows international business companies. IBCs can form in jurisdictions all over the world like Belize and Hong Kong.

Panama also has the benefit of a stable economy and government. In addition Panama uses the U.S. dollar as its official currency.

Location, however, plays a key role in making Panama IBCs successful. Each jurisdiction has its own rules and regulations. Panama’s make it easy for companies to take advantage of benefits without compromising privacy.

Panama also has the benefit of a stable economy and government. In addition, Panama uses the U.S. dollar as its official currency. While many jurisdictions in South America raise concerns about government rebels and currency fluctuations, Panama remains stable because it’s built on laws that have worked well in other countries.

What are the Benefits of Forming a Panamanian Corporation?

Many businesses get interested in starting a Panamanian corporation because they want to save money on taxes. It doesn’t take long before they see that forming a Panamanian corporation offers more benefits than just lower taxes.

Some of the advantages of incorporating in Panama include:

  • Minimal government regulations so you can make business choices based on market trends and profits rather than what the government dictates
  • Confidentiality – Panamanian corporations aren’t required to keep a public record of shareholders
  • The option of protecting your privacy with nominee directors.
  • Limited personal liability
  • Privacy so others don’t know what innovative approaches your business uses

Obviously, these are attractive benefits for companies that want to make the most of their investments and business strategies.

Instead of paying taxes, Panamanian corporations pay a flat rate of $300 per year. That’s it. It doesn’t matter how much money you make, you only pay $300 to the Panamanian government. That brings significant savings to corporations used to operating in North America and Europe.

Now, how can you make sure you’re taking all the necessary steps to incorporate Panama in a time-efficient and secure manner?

Forming a Corporation With Panama Lawyers

With so many benefits, it makes sense for companies to incorporate in Panama. The incorporation process, however, can become confusing, especially for people living in other countries who don’t understand the laws in Panama, also strictly you will need a lawyer o law firm which assists you in the proceeding. It’s even more confusing for business leaders who don’t speak fluent Spanish.

That’s why so many IBCs choose to incorporate with the help of Panama lawyers. Panama lawyers who specialize in businesses can make the process much easier.

There are some basic steps that you will have to follow, however. When you work in conjunction with Panama lawyers, though, these steps become incredibly simple. Before you can form an IBC you will need:

  • A name for your corporation that ends in “S.A.,” “Corp.,” “Corporation,” Sociedad Anonima,” “Inc.,” or “Incorporated.” Other than that, you can choose any name you want in any language you prefer.
  • At least three directors (your Panama lawyers can act as nominee directors)
  • At least one shareholder for your company must be the client or a person or entity of any nationality appointed by the client.

When you contact the lawyers at Delvalle and Delvalle, they will help you gather the information you need to complete these steps and get your company functional. In many cases, you can form a corporation in less than a week.

If you need more detailed information, don’t hesitate to contact our office. We have worked with many individuals and organizations, so we can answer your questions thoroughly.

Please call us to +507-390-2890, use the chat system or the contact form below if you have any questions or requests concerning our services.

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