For many years now, Panama has been a desirable location for investment, international business, and for offshore incorporation in Panama City. These days, however, the rise of international business has brought more opportunities, and more complications. Businesses get discouraged as they discover just how complicated international law can be to learn. Many countries cannot offer the privacy, asset protection, or ease of setting up an IBC as Panama does.
Investing in Panama with an IBC is a strategic option for investors and companies when looking for full privacy and tax advantages. Panama offers more features under its taxation and privacy laws for IBCs than other countries. As well, three-fourths of Panama’s GDP is in the service sector, reflecting the strength of banking services and IBC formations. The strength of the banking sector rests also on the U.S. dollar based economy, making Panama an inviting prospect for offshore business. Panama’s history in the creation of IBCs is reflected by the strength of its service sector, displaying the full potential available to companies to Panama.
There are certain advantages in setting up in Panama an IBC, including complete privacy. Panamanian laws completely protect the privacy of shareholder identities, recordkeeping, directors’ identities, and earnings. Panama does not require any accounting or audits therefore recordkeeping is at the discretion of the directors and cannot be released for public view. The identities of shareholders and directors are also kept from public release, allowing for complete privacy of ownership and direction. As well, there is no need to travel to Panama to set up the IBC, to conduct meetings, or to be present for banking transactions, which helps create a completely private association. Panama’s laws also allow anyone to be a shareholder or director, no matter their country of origin or nationality. Finally, an IBC in Panama is not required to report earnings, so there is no public disclosure of those earnings, keeping them private.
Since Panama does not require disclosure of recordkeeping or earnings, there is no way to tax those earnings. The only number needed by the Panamanian government is an estimation of the company’s worth. Otherwise, there is no capital gains tax, inheritance tax, and no tax on bank interest income. An IBC is exempt from local taxes, as long as the income received by the company is from outside Panama. Panama is unique in exempting IBCs from their local taxation policies, which gives it an advantage in offering offshore incorporation.
It only takes 4 to 5 business days to incorporate a company as an IBC in Panama. The result is complete privacy and asset protection for companies set up in Panama. For seventy five years, Panamanians have delivered several advantages of creating an IBC investment within their country. These advantages are beyond what other countries can offer companies, and the IBC can rely on the strength of the service sector and the U.S. Dollar circulation in Panama, making it a leader in the servicing and creation of IBCs.