IBC Corporations in Panama
Overview
Law 32 of February 26th, 1927 created the International Business Corporations (IBC) in Panama, leading it to be one of the most popular legal entities for Asset Protection in the world.
Basically, the Panamanian IBC (or S.A. for Anonymous Society in Spanish) is a “Shares Company”, whose shares can be issued either nominative or to the bearer, being this last option the one that gives this entity its quality of anonymity.
Among its benefits are that there is no requirement of publicly disclosing the shareholders; and that the shareholders’ assets are legally separated from the company’s assets.
Nowadays though, with the new international banking regulations, if the corporation is holding a bank account, it is mandatory to disclose the corporation’s shareholders information to the bank, or even to have the shares issued nominatively instead of to the bearer.
Benefits
- Shareholders’ personal assets are protected from Corporation’s liabilities, and vice versa
- It has a legal identity for business and civil acts
- The recommended capital investment of USD $10,000.00 can be less or more and is not required to be paid up front
- Accounting books and corporate meetings can be held anywhere in the world
- Minimum 3 board members are required
- Shares can be issued nominative or to the bearer
- Excellent legal instrument for asset protection, either real estate, banking or brokerage worldwide
- Excellent for new or on going businesses
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Visit our Frequently asked questions to find answers to common concerns from our clients.
Frequently Asked Questions
A: IBCs and LLCs share some similarities. Both are legal entities and they limit a member’s responsibility to his participation as a shareholder or partner. However, the IBC requires at least 3 directors and 1 or more shareholders who don’t have to be publically disclosed – for this reason, IBCs are also known as Anonymous Corporations. On the other hand, the LLC requires a minimum of 2 Managers and 2 or more Partners. Their names must be publicly disclosed in all registration documents, providing more transparency.
A: An IBC incorporation takes approximately 7 business days.
A: The minimum capital must be $10,000.
A: There is an annual government fee that must be paid to maintain your entity in good standing. However, the taxes over the income earned are approximately 25% if you have an ongoing operation.
A: A corporation can be formed by only one shareholder.
A: Shareholders do not necessarily have to be Panamanian, they can be natural or legal persons of any nationality and domiciled anywhere in the world.
A: Shareholders must comply with any applicable legal and regulatory requirements. Their liability is limited to the amount they owe on their shares and does not extend beyond their investment, except in exceptional circumstances.