Panama IBC
International Business Corporation incorporated in Panama
Panama IBC Introduction A Panama IBC is an International Business Corporation incorporated in Panama. Most of the 400,000 corporations in Panama are of the anonymous bearer share type and are eligible to conduct business around the world as well as inside of the Republic of Panama.
Panama IBC Limitations To be accurate Panama does not have IBC entities in the strict definition of the term. An offshore IBC is not allowed to do business in the country where it was formed. It can not engage in commercial activities in that jurisdiction. It can not have a bank account in that country. It can not own real estate in that country. It can not have a stock brokerage account in that country. In Panama we generally form a bearer share corporation for our clients. This bearer share corporation can have a Panama bank account, a Panama stock brokerage account, own real estate in Panama or anywhere else, do business in Panama and so forth. The IBC format is a very limited type of corporate structure and Panama only offers a better more flexible corporation.
Panama IBC Bearer Shares Sometimes an offshore IBC can issue bearer shares and sometimes not. It depends on the jurisdiction being used for the corporate formation. If bearer shares are being issued one must pay attention as to whether or not the shares can be issued in blank as they can be so issued in Panama. One must also determine if the shares can be held anywhere in the world or if they must be kept with the registered agent in the country where the IBC was formed. Panama allows the shares to be kept anywhere in the world. One needs to consider what reportage requirements there are for the sale of the corporation and the transferring of the shares. Panama has no such requirements. Whether or not any ownership records are in the public domain is another important question to consider when evaluating a jurisdiction for privacy and asset protection. Panama does not put any ownership records pertaining to any Panama Corporation or Panama Foundation in the public domain in fact the Panama Government never collects any ownership records on the Panama corporations. It is possible to have a Panama Foundation own the shares of the Panama Corporation thus removing one from being in the position of being the owner. Panama Foundations by definition do not have owners and have no share certificates.
Panama IBC Taxation Panama corporations only pay a fixed annual tax of $300 per year if their income is offshore derived. Panama also has no capital gains tax, no inheritance tax and no tax on bank interest income. The lack of taxes applies to the Panama Corporation and to private individuals.
Panama IBC Formation Times A Panama corporation can be formed in 2-3 working days from the time our law firm has received the funds and required documents. One does not have to come to Panama to form a Panama corporation or Panama IBC.
Panama IBC Nominees Panama corporations can use nominee directors who do not know the owners of the corporation. The nominees are trusted by our law firm. One must have at least two nominees. Nominees can also be judicial persons like other corporations.
Panama IBC Real Estate Ownership A Panama IBC can be used to hold real estate anonymously anywhere in the world. Through the use of bearer shares the Panama Corporation is anonymous in that no ownership records appear in any public registry or database and the government does not even have any records showing who owns the corporation.
Panama IBC Banking A Panama IBC can have one or more bank accounts in Panama bank accounts or banks in other countries. The bank accounts would be in the name of the Panama IBC. One need not come to Panama to have a bank account for their Panama IBC or even a personal Panama bank account.
Panama IBC Stock Brokerage Accounts A Panama IBC can have stock brokerage accounts in Panama or in other countries around the world.
About the Author
Smythe Bradley is an expat living in The Republic of Panama. He has published many articles on offshore asset protection in panama, panama visas and residency, as well as many other expat issues
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