We often hear clients asking us that very question.  Like you, they want to know which is really better.  The answer is that it
honestly depends upon what you are trying to accomplish and if you in fact prefer the attributes of one in comparison to the other.
In other words, neither can be called equivalent.  There are both benefits and detractions to each one.
 
 

Ascot Advisory Services Santo Domingo, Dominican Republic Panama, Republic of Panama Telephone  809-334-5387 Click Here to Send Email

 
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One advantage that the Bahamas IBC may have over the Panamanian Incorporation is of course that the documents are in English.
If a client may be looking to use the corporation as a vehicle for business in other English speaking jurisdictions, then the
Bahamian IBC may be preferable for this purpose.  Also, the Bahamas IBC requires only one director where as the
Panamanian Company does require three.  In addition, directors do not have to be recorded or indicated in the public registrar,
where as Panamanian directors are mentioned in the corporate documents filed with the registrar.  Is this a positive or a negative?
 Well, if the director is not mentioned in the corporate filing, then who actually can attest to the person holding rights and responsibility
for the directorship.  The answer is the attorney doing the incorporation.  So, while the director's name is not a public record, the
proof of who is the authorized directory may be in soley in the files of a local barrister.  This may be both a positive and a negative,
depending upon your point of view.   
 

Another key difference with the Bahamas IBC is that is receives a tax exemption, but only for twenty years.  In addition, the
Bahamas IBC is forbidden to engage in business with Bahamian citizens or to own property in the Bahamas.  This means
that the Bahamian IBC can own bank accounts or investments tax free for the first twenty years, but it cannot own land or engage
in a traditional business enterprise in the Bahamas.  Since there is no distinction in Panama between a corporation that may be
established for asset protection purposes or for an actual business enterprise in Panama, there are no such divisions under the law.
In other words, a Panamanian Corporation enjoys a tax-exempt status as long as its business activities and income are derived
from sources outside of Panama.   So while a Bahamas IBC enjoys a twenty-year tax exemption, A Panamanian Company enjoys
a permanent one as long as the previous mentioned conditions are met. In addition, the Panamanian Corporation can own real estate
in Panama without restriction.  Both of course enjoy the benefits of receiving local bank account interest free from taxation. 

This discussion is not meant to allude that one jurisdiction is better than the other - just different.  For example, we know that the
law in the Bahamas is based upon Common Law while law in Panama is based upon Civil Law. Which in reality is a better domicile?
Again, that depends. The Bahamian IBC may be a better choice for such issues as protection of patents and other intellectual property,
while Panama may be a better choice if the concerns are for protection from frivolous lawsuits or divorce actions (see information
about the Panamanian Foundation).   So in reality, it is not just a question of one jurisdiction that speaks English vs. another that
speaks Spanish.  It really comes down to which one serves the needs of the client.
 
 
   
For Additional Information Regarding the Use of a Foundation and other vehicles for asset protection, please send us an Email.