Panama Offshore Company Formation

Last updated on 09 May 2022. Written by Offshore Protection.

What is a Panama Offshore Company?

A Panama Offshore Company formation is one of the longest standing offshore formation jurisdictions in the world. A Panama Offshore Company can be used for many purposes including as a holding company, to open an investment account or offshore bank account, to hold real estate or non physical products.

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.A Panama Offshore Company are often called an International Business Corporation (IBC) in many other jurisdictions is a non-resident corporate structure for tax purposes that give individual a number of benefits.

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 or if you are looking to retire in Panama go here.

Table of Contents:

What is a Panama Offshore Company?
Advantages of a Panama Company
Tax Advantages
Top Uses
Key Corporate Features
Incorporation Packages
Registration Requirements
Corporation Taxation
Company Corporate Details

Advantages of a Panama Company

Anonymous Ownership

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.

No Reporting Requirements or Taxes

Panama does not impose any reporting requirements or taxes for non-resident Panamanian corporations.

No Piercing the Corporate Veil

Panama does not allow "piercing the corporate veil", so your corporate books are maintained 100% private and confidential by law.

Nominee Directors

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.

Favorable Incorporation Laws

Panama offers the most favorable and most flexible incorporation laws available in the world.

Strict Privacy Laws

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.

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No Sharing of Information Treaties

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.

Stable Government

Panama has what is considered by government analysts to be the most stable government in all of Central or South America.

Panama Tax Advantages

No tax reporting requirements
No income tax
No capital gains tax
No sales tax
No tax on issuance of corporate shares
No tax to shareholders
No stock sale or transfer tax
No capital stock tax
No property tax
No estate tax
No gift tax
No stamp tax
No succession tax
No inventory tax

Top Uses

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:

Offshore savings and investments
Private Interest Foundations
Forex and stock trading
E-commerce
Professional service company
Holding Company
Licensing company
Internet services
Asset protection Company

Key Corporate Features

Panama Corporation	Corporate Details
General
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
Corporate Taxation	No
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
Permitted currencies	Any
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
Directors
Minimum number	3 Directors/Officers (President, Secretary and Treasurer)
Local required	No
Publicly accessible records	No
Location of meetings	Anywhere
Corporate directorship allowed	No
Shareholders
Minimum number	1
Publicly accessible records	No
Corporate shareholder allowed	Yes
Location of meetings	Anywhere
Company Secretary
Required	Yes
Local or qualified	No
Accounts
Requirements to prepare	No
Audit requirements	No
Requirements to file accounts	No
Publicly accessible accounts	No
Recurring Government Costs
Minimum Annual Tax	USD $250
Annual Return Filing Fee	NA
Other
Requirement to file annual return	No
Migration of domicile permitted	Yes

Incorporation Packages

Includes:

Government Registration Fee (First year)
Registered Office Address (First year)
Registered Agent Services (First year)
Company Secretarial Maintenance
Certificate of Incorporation
Memo & Articles of Association
Appointment of 1st Directors
Consent Actions of the BOD
Share Certificates
Register of Directors
Register of Officers
Register of Shareholders
FREE Phone and/or email consultations

Panama Offshore Company Registration Requirements

Name of the corporation
Name and domicile of the subscribers of the corporation
Corporate objectifies
Corporate Capital
Duration of corporation
Name and address of Directors and dignitaries
Name and address of the registered agent

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.

Panama Corporation Taxation

A Panama Offshore Company enjoys a variety of tax exemptions that offer individuals and corporations a number of savings, including:

No tax reporting requirements
No income tax
No capital gains tax
No sales tax
No tax on issuance of corporate shares
No tax to shareholders
No stock sale or transfer tax
No capital stock tax
No property tax
No estate tax
No gift tax
No stamp tax
No succession tax
No inventory tax

Panama Offshore Company Formation Corporate Details

Required Capital

No minimums

Financial Statements Required

A Panama Company is not required to file audited financial statements annually with the Financial Services Commission.

Company Secretary

The appointment of a company secretary is mandatory.

Directors

A panama offshore Company must have a minimum of (3) three Directors (President, Secretary and Treasurer).

Powers of the Company

Companies incorporated in Panama have equal power as that of a natural person.

Registered Office Required

Every Panamanian corporation must have a registered office

Local Presence

There are no mandatory local presence requirements

Language of Name

The name of the company may be in any language

Annual Government Fee

There is an annual fee of US$350 with a one time registration payment of US$250.

Name Restrictions

The name of a Panama Company must include one of the following legal endings: Incorporated, Corporation, Sociedad Anonima, Inc., Corp., S.A.

Shareholders

There must be one (1) shareholder, either and individual or a corporate body, issued one share valued at US$100.

Corporate Meetings

Meetings can take place anywhere in the world.

Double Taxation Agreements

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.

Panama Offshore Company Formation with Offshore Protection

Join thousands of satisfied clients who have experienced the Offshore-Protection advantage for more than 25 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.

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