International Business Corporations (IBC)
The Corporation is an effective means of asset protection. A Natural Person and/or a Panamanian Legal Person only pays taxes on their profits produced or generated in Panama.
Profits obtained abroad do not pay taxes in Panama. A Corporation is an appropriate or suitable instrument for doing business. It is constituted in approximately four (4) business days. By paying shift alteration, it can be constituted in one (1) business day.
The company mentioned above is the correct means of protecting assets and doing business since it only assumes the commercial risk. The shareholders and/or representatives of the company, as mentioned earlier, have no liability towards third parties except in fraud cases.
REQUIREMENTS FOR ESTABLISHING A CORPORATION
- Fill out the attached form (Download PDF here).
- A full copy of passports, second identification, and two (2) vouchers for payment of public services of their representatives and shareholders.
- Three (3) name alternatives in any language of the Latin alphabet, being able to combine it with letters and/or numbers.
- Name and address of the subscribers, directors, shareholders, and/or representatives of the Corporation.
- Main objectives of the Corporation.
- Share capital, amount, share distribution, and share classes.
- Two (2) bank references and two (2) commercial references
- Payment of expenses and fees for the Constitution of the Corporation.
SOME OF ITS ADVANTAGES ARE:
- It is an effective way to protect assets.
- It is not necessary that your share capital is paid when the company is incorporated.
- You do not pay tax on your earnings obtained outside the fiscal territory of Panama.
- Meetings can be held anywhere in the world or by telephone and/or any other electronic means that allow partners to be in direct communication.
- The corporation may have one (1) or more shareholders.
- The company may engage in any lawful activity, even if it is not indicated in the Company’s Articles of Incorporation.
- It is not necessary for the Company’s Articles of Incorporation to indicate who or whom the company’s shareholders are, nor is it necessary to indicate the share-holding proportion.
- It gives enough anonymity of who or whom the owners of the company are.
- The commercial risk is assumed by the corporation, the shareholders and/or representatives of the corporation do not have to answer for it, except in case of fraud.
- Their representatives and/or shareholders can be of any nationality.