General information about Panama offshore company and Panama IBC
Panamanian corporation law is one of the most liberal and stable in the world. It has not changed for over 80 years and is dating back to the 1920s.
Offshore company in Panama and Panamanian corporations are used worldwide and are well accepted by banks, investors, governments. It is estimated that there are around 400,000 registered companies in Panama, with a significant proportion being offshore companies making it one of the largest offshore financial centers in the world. Panamanian international companies are most popular and widely used in countries such as the United States, China, Venezuela, Colombia, and Mexico. These countries benefit from Panama's favorable tax laws and business-friendly environment, as well as its strategic location as a hub for trade and commerce between the Americas. Additionally, Panamanian companies are often used for asset protection, estate planning, and international structuring purposes.
Panamanian offshore company advantages:
- Setting up offshore company in Panama is affordable and prompt.
- Income derived using a Panama IBC but outside of Panama is not taxed.
- Government does not control the offshore company in Panama activities.
- Confidential information is neither required nor registered.
- Panama offshore company can be managed from any place of the world.
- Bearer shares may be issued at owner's option.
- No paid - in capital required for incorporation a Panama IBC.
- No limitation on Panama offshore company lawful activities.
Panama IBCs can be used for a variety of purposes, including:
International Trade: Panama IBCs can be used to engage in international trade activities such as import/export, e-commerce, and international logistics.
Asset Protection: Panama IBCs offer strong asset protection features, including strict banking secrecy laws, which can protect the assets of the company and its shareholders from potential legal actions or creditors.
Tax Optimization: Panama IBCs offer favorable tax laws, including a territorial tax system and no tax on foreign-source income, which can allow companies to optimize their tax structure and reduce their tax burden.
Holding Company: Panama IBCs can be used as a holding company to hold and manage assets, including real estate, intellectual property, and financial assets.
International Investment: Panama IBCs can be used as a vehicle for international investment, including investments in other companies, stocks, bonds, and other financial instruments.
Offshore incorporation fees will depend on your order configuration. Please get in touch and we will send you an exact quotation. It will take about 5-7 business days to register an offshore international business company in Panama.
Personal details of the company owners, directors, shareholders will be required for the incorporation and these details are public. You may use our nominees if you wish to maintain your privacy.
Please send us a message if you are interested to incorporate in Panama or have any queries. We will be pleased to advise.
What is a Panama IBC?
A Panama IBC (International Business Company) is a type of offshore legal entity incorporated in Panama, which provides a number of advantages for international businesses and investors. Panama IBCs are exempt from local taxes on foreign-sourced income, can be owned and managed by non-residents, and offer a high degree of confidentiality and privacy.
What is the difference between IBC and LLC in Panama?
An International Business Company (IBC) and a Limited Liability Company (LLC) are two types of business structures available in Panama with some key differences.
IBC (International Business Company):
- An IBC is a type of offshore company that can be owned by non-residents and used for international business activities.
- An IBC in Panama is not taxed on its worldwide income, only on its local income.
- An IBC is not required to file annual financial reports, and its meetings can be held anywhere in the world.
- An IBC can issue shares or guarantee fees to its shareholders.
LLC (Limited Liability Company):
- An LLC is a type of company that can be owned by non-residents and used for local and international business activities.
- An LLC in Panama is taxed on its worldwide income.
- An LLC is required to file annual financial reports and to hold meetings within Panama.
- An LLC is owned by members, rather than shareholders.
In summary, an IBC is a more flexible and less regulated business structure that is ideal for international business activities, while an LLC is a more traditional business structure that is ideal for both local and international business activities.
What does IBC mean in tax?
In tax, IBC stands for "International Business Company." It is a type of offshore company or corporation that is formed in a jurisdiction with favorable tax laws and regulations. IBCs are often used for international business and investment purposes, as they can provide significant tax benefits and asset protection.
Why is Panama a tax haven?
There are several reasons why Panama has become a tax haven:
1. Tax laws: Panama has a territorial tax system, which means that income earned outside of Panama is not subject to Panamanian taxes. This has made Panama an attractive destination for international businesses looking to reduce their tax liability.
2. Banking secrecy laws: Panama has strict banking secrecy laws that protect the identities of bank account holders and their financial information. This has made Panama an attractive destination for wealthy individuals and corporations looking to keep their financial affairs private.
3. Geographic location: Panama is strategically located at the crossroads of trade routes between North and South America. Its location makes it an attractive destination for international businesses looking to establish a presence in the region.
4. Political stability: Panama has a stable political and economic environment, which makes it an attractive destination for foreign investment.
However, it is important to note that Panama has been taking steps to increase transparency and combat tax evasion in recent years. It has signed several international agreements to exchange financial information with other countries and has implemented stricter regulations on its banking industry.
Is Panama really tax-free?
Panama is not entirely tax-free, but it does offer some tax advantages to individuals and businesses. Here are some key points to keep in mind:
Panama does not tax income earned outside of Panama. This means that if you are a non-resident who earns income from sources outside of Panama, you will not be subject to Panamanian income tax.
Panama has a territorial tax system, which means that only income earned within Panama is subject to Panamanian income tax.
Panama has a relatively low income tax rate compared to other countries. The maximum income tax rate for individuals is 25% for income above $500,000, and the corporate income tax rate is 25%.
Panama does not have inheritance or estate taxes.
Panama offers a number of tax incentives to certain types of businesses, such as those involved in tourism, manufacturing, and international services.
It is important to note that while Panama offers some tax advantages, it is still important to comply with local tax laws and regulations, both in Panama and in your home country. Additionally, tax laws and regulations can change over time, so it is always a good idea to consult with a tax professional before making any decisions based on tax considerations.
How to set up an offshore company in Panama?
Setting up an offshore company in Panama can be a complex process, and it is important to follow all relevant laws and regulations. Here are some general steps you may need to follow to set up an offshore company in Panama:
Choose a name for your company: Choose a name for your company that is not already registered in Panama.
Choose the type of company: Choose the type of company you want to set up. In Panama, the most common types of offshore companies are Private Interest Foundations and Corporations.
Hire a registered agent: You must have a registered agent in Panama to represent your company. The registered agent must be a Panamanian resident.
Register your company: Register your company with the Public Registry of Panama. You will need to provide the name of your company, the names of the directors and officers, and the purpose of your company.
Open a bank account: Open a bank account in Panama to operate your company. You will need to provide identification documents and other information required by the bank.
Obtain necessary permits and licenses: Depending on the type of business you plan to conduct, you may need to obtain permits or licenses from government agencies in Panama.
Pay fees and taxes: You will need to pay fees and taxes associated with setting up and operating your offshore company in Panama.
It is important to note that the process of setting up an offshore company in Panama can vary depending on the specific circumstances of your situation. Additionally, there may be legal and tax implications associated with setting up an offshore company, so it is always a good idea to consult with a lawyer or tax professional who is familiar with the laws and regulations in Panama before proceeding.