A Panama Offshore Company, or International Business Corporation (IBC) as they are commonly referred to in other jurisdictions, is one of the longest standing offshore formation jurisdictions in the world.
Established in 1927 the General Corporations Law gave form to the Panamanian Corporation and has since registered some 400,000 corporations and remains one of the premier destinations for offshore business formation.
The Panamanian offshore model has since become the world standard due to its flexible formation structure, methods to ensure customer privacy and supportive legal framework.
If you are looking to open a Panama bank account, they generally accept Americans and non-resident individuals and corporate entities, but must have a Panama Company and provide the necessary documentation and satisfy the KYC requirements.
Panama is strategically located as a bridge between the Americas and has become an international center for trade, finance, and baking services. It offers a range of financial and immigration services that are very popular amongst entrepreneurs investors.
Panama offers a Financial Company that is one of the most competitive non-bank financial entity out there and have very generous residency programs and visas that allow permanent residency and citizenship within as little as 5 years, with minimal requirements.
Thanks to a stable political environment, the Panamanian economy has achieved rapid growth over the last two decades due to its open business environment, free trade zones, and low tariffs that have encouraged investors and business enterprises in the country.
Panama remains one of the best places to due business due its financial opportunities, low risk investments, and thriving banking center.
A Panama Offshore Company gives individuals and corporations the ability to incorporate in a country that has a long reputation for financial and offshore excellence.
Offshore formation in Panama offers complete confidentiality, attractive tax-free opportunities, a favorable legal environment, and a supportive banking infrastructure all of which account for why Panama is one of the premier destinations for offshore corporations.
For more information on the Advantages of Panama as an Offshore Financial Center, click here.
Panama corporations share certificates can be issued in Nominative or Bearer form (Bearer Shares are an anonymous form of ownership), with or without par value.
Panama does not impose any reporting requirements or taxes for non-resident Panamanian corporations.
Panama does not allow "piercing the corporate veil", so your corporate books are maintained 100% private and confidential by law.
We offer our clients the optional service of using our "Nominee Directors" for their corporation(s). For purposes of confidentiality, most of our clients prefer that we provide nominee directors/officers for their corporations, since unlike IBC's set up under Belize, Nevis or other British Commonwealth tax haven corporate laws, directors have to be in the public registry.
When we appoint nominee directors for the entities that we establish for our clients, we always provide our clients with pre-signed, undated letters of resignation from the directors so that our client can replace those directors at any time, without in any way being dependent on our law firm.
Panama offers the most favorable and most flexible incorporation laws available in the world.
Panama continues to maintain what we consider to be the most solid banking and corporate book secrecy laws in the world, which are engraved in its' constitution.
With Britain's proposed regulation for removal of bank and corporate book secrecy in the UK offshore territories, plus considerable dilution of privacy laws in jurisdictions, such as Bahamas, Antigua, St. Vincent etc., it is clear that Panama remains the most secure offshore financial center
In Panama, privacy and confidentiality are not only respected, but also vigorously protected by constitutional law. Panama offers the best bank secrecy and corporate book secrecy laws in the world.
Panama has no mutual legal assistance treaties (MLAT's) for sharing of banking information with any other nation and does not recognize court rulings from other countries.
Panama has what is considered by government analysts to be the most stable government in all of Central or South America.
Panama has a supportive legislative and banking environment making incorporation procedures both easy and flexible for many different business activities. An offshore company can be made for any legal purpose and for any legal activity, including but not limited to:
|Panama Corporation||Corporate Details|
|Type of Entity||Limited by Shares|
|Type of Law||Civil Law System|
|Governed by||General Corporation Law of 1927
Coded Bank Accounts Law 8 of 1959
Commercial Code Law 17
|Registered Office in Panama||Yes|
|Shelf company availability||Yes|
|Our time to establish a new company||3 days|
|Minimum government fees (excluding taxation)||US$250|
|Access to Double Taxation Treaties||Yes|
|Share capital or equivalent|
|Standard currency||Legal tender is the US dollar.
Panamanian Balboa (official currency)
PAB fixed exchange rate of USD $1.00 = PAB 1.00
|Minimum paid up||No minimum|
|Usual authorized||USD $10,000 divided into 100 shares of $100 each|
|Bearer shares allowed||Yes|
|No par value shares allowed||Yes|
|Minimum number||3 Directors/Officers (President, Secretary and Treasurer)|
|Publicly accessible records||No|
|Location of meetings||Anywhere|
|Corporate directorship allowed||No|
|Publicly accessible records||No|
|Corporate shareholder allowed||Yes|
|Location of meetings||Anywhere|
|Local or qualified||No|
|Requirements to prepare||No|
|Requirements to file accounts||No|
|Publicly accessible accounts||No|
|Recurring Government Costs|
|Minimum Annual Tax||USD $250|
|Annual Return Filing Fee||NA|
|Requirement to file annual return||No|
|Migration of domicile permitted||Yes|
Panama corporations must have two subscribers present at the public registry in order to be incorporated. The subscribers are the individuals from our law firm that appear at the Public Registry with the articles of incorporation to incorporate the corporation.
By law, the subscribers have a right to own one (1) share of the corporation. As soon as the corporation is established, the subscribers sign a document where by they resign their rights to one (1) share of the corporation. This document is provided to our client along with the other corporate documentation.
A Panama Offshore Company enjoys a variety of tax exemptions that offer individuals and corporations a number of savings, including:
A Panama Company is not required to file audited financial statements annually with the Financial Services Commission.
The appointment of a company secretary is mandatory.
A panama offshore Company must have a minimum of (3) three Directors (President, Secretary and Treasurer).
Companies incorporated in Panama have equal power as that of a natural person.
Every Panamanian corporation must have a registered office
There are no mandatory local presence requirements
The name of the company may be in any language
There is an annual fee of US$350 with a one time registration payment of US$250.
The name of a Panama Company must include one of the following legal endings: Incorporated, Corporation, Sociedad Anonima, Inc., Corp., S.A.
There must be one (1) shareholder, either and individual or a corporate body, issued one share valued at US$100.
Meetings can take place anywhere in the world.
Panama has signed twelve (12) Double Taxation Agreements with Barbados, South Korea, Spain, France, Italy, Luxembourg, Mexico, The Netherlands, Portugal, Qatar, Singapore and the United States of America.
Join thousands of satisfied clients who have experienced the Offshore-Protection advantage for more than 18 years. When you purchase any offshore company formation products, you'll get FREE support from our lawyers to help answer your overseas company day-to-day management questions.