Panamanian Company Investments

What is an IBC and what benefits does it offer?

A Panamanian Company, or Panama IBC (International Business Corporation), is often quoted as an excellent way to reach your monetary goals or as offering many financial benefits as opposed to regular companies. Some of these benefits include lower tax payments, excellent confidentiality laws, and limited personal liability, among others.

Panama is one of the most stable countries in South America, which in turn guarantees the stability of your assets and your IBC.

But, what is a Panamanian Company? It is a foreign company that incorporates Panama in order to take advantage not only of the many benefits this country offers but also of the evident economic and government stability Panama has enjoyed for many years. Actually, Panama is one of the most stable countries in America, which in turn guarantees the stability of your assets and your IBC.

Apart from the various and very advantageous Panama Company laws that guarantee the success of most foreign businesses, the country also has many law firms offering specialized IBC legal advice.

Who should invest in an IBC?

A point worth discussing is who the best candidates are to invest in Panamanian Companies. It takes more than a firm desire to improve your earnings and protect your company from liability and confidentiality breaches.

You should invest in a Panamanian Company if:

• You have cash, equity, properties, or any assets that you which to protect.
• You generate any income outside your country.
• You own an airplane, a yacht, or a ship.
• You are considering remarrying and have had issues with money in your previous relationship.
• You work as an independent professional or contractor.
• You serve as a trustee, registered officer, or director of any type of institution, organization, or corporation.
• You are on the verge of receiving a large inheritance.

These are just some of the main reasons why you should invest in Panamanian Companies. A Panama Lawyer will be able to give you exact advice regarding your particular case and the many ways in which a Panamanian Company may benefit you.

What are the Incorporation Costs of an IBC?

There is a widespread belief that forming a Panamanian Company is inexpensive and that is a really fast legal procedure, and while this is true, exactly what are the costs involved in the creation of an IBC in Panama?

Legal fees charged by Panama Law firms specialized in offering company services may vary from law firm to law firm, but there are certain costs and expenses that are charged by the government and that are fixed.

• There is a yearly fee of US$200.00 charged by the incorporating attorney, who is the liaison between the Panama Government and the IBC.
• There is a yearly fee of US$ 300.00 charged by the incorporation attorney in case you choose the nominee director services.
• There is an annual franchise fee of US$ 300.00 charged by the government as a maintenance fee. Late payments are subject to a US$ 50.00 penalty fee.
• There is a US$ 500.00 one-time charge for the dissolution of an IBC.

All in all, a Panamanian Corporation might spend US$ 1000 at most on annual maintenance fees.

As regards the time it takes to form an IBC, it ranges from 3 to 5 business days.

We strongly recommend working with a professional Panama Law firm to take care of all Panamanian Company related issues.