Panama IBC Corporations
Main uses for a Panama IBC Company
Panama is an experienced jurisdiction for setting up an IBC corporation because of all the advantages and benefits it offers. The Panama International Business Corporation (IBC) is an International Operating Company used since various decades in the business and financial communities across the world as a proven structure to carry on all kind of business interests.
All of these inherent benefits mean that there are important and potential uses for a Panama IBC Company, the most common of which are as a holding company (as a shareholder of foreign entities) or to engage in business that does not require a strong physical presence.
“As a holding company, it is possible to own other companies shares, intellectual property rights such as patents and trademarks. It can also be used to hold interests in other legal entities in various jurisdictions.”
It can also serve other businesses such as consulting companies, family offices, shipping and logistics companies, offshore manufacturing, online businesses, startups, apps and software development, licensing and sublicensing companies, real estate ownership and so on.
Let’s break down the advantages and look closer at the main uses for a Panama IBC.
An asset holding company
Panama companies are used to hold interests in other legal entities in various jurisdictions; in these cases the Panama company is appointed as shareholder of the foreign corporation.” Panama companies are used also on behalf of an asset protection Trust or Private Foundation for either privacy and for future estate planning purposes. It could be used to manage the Trust or Foundation assets, or as Council Member, Founder or Protector.
Maritime businesses and ship ownership
Panama has a world-class maritime economy due to its position, the Panama Canal and the world’s largest merchant marine fleet. A Panama company can take title of ownership of a pleasure vessel (for example a Yacht or Catamaran) or a commercial ship. In the case of commercial property, the incomes and dividends generated by the vessel outside of Panama are exempt from Panamanian taxes.
Real estate ownership
A Panama corporation can take title of ownership of real estate assets worldwide. Holding part of your wealth through and IBC company protect your assets against potential litigants and any possible business failure, insolvency or bankruptcy.
Intellectual and Industrial Property Ownership
Panama Inc.’s are frequently used specifically to hold intellectual property rights such as patents, trademarks, licenses or act as a holding company for ownership of other entities industrial rights.
Act as a trading company
As the amount of worldwide exporting and importing increases and complexes, a Panama IBC can play a part by performing the function of trading company. The IBC could use a second corporation as a fulfilment company to take orders from the customer and do invoicing. Profits would then be captured abroad and can go directly to an international bank account on a jurisdiction that would provide good, reliable and fast bank services depending on your region of operation. This could provide costs efficiencies and time advantages for operations.
Tax planning
One important advantage gained by using a Panamanian Corporation is its tax treatment based on the Panamanian tax principle of territoriality. Under this system, only incomes or profits generated within the geographic territory of Panama are subject to tax. Any profit obtained from activities outside of Panama, such as transfers or acquisition of securities, management of bank accounts and investments, the transfer or sale of real property or chattels, and the dividends received from companies operating abroad are exempt from Panamanian taxes. This refer to Panama taxes only and under no circumstances exempt the client to consult with a legal or tax specialist in his country of residence or nationality to comply with his local tax responsibilities.
Investment holding company
As a vehicle for multiple investors to pool their funds and collectively invest around a specific investment objective or strategy, e.g. real estate or a trading account. Essentially, the purpose of a holding company is holding any type of investments.
Do not hesitate to contact us if you have any further questions. We can explain in details about how to incorporate and manage a Panama IBC Company.
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