Panama Offshore Company Formation
- Last updated on . Written by Offshore Protection.
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, or 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, also called a International Business Companies (IBC) in other jurisdictions is also referred to as a non-resident corporate structure for tax purposes.
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 corporate bank account, they generally accept American and non-resident individuals and corporate entities but you must have a Panama Company entity and provide the necessary documentation and satisfy the KYC requirements.
Panama is strategically located as a bridge between the Americas, known for its Panama Canal 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 and investors.
Panama offers a Financial Company that is one of the most competitive non-bank financial entity out there with some generous Panama citizenship 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 City remains one of the best places to do business due to its financial opportunities, low-risk investments, and thriving banking center. Panama Companies give individuals and corporations the ability to incorporate in a country that has a long reputation for financial and offshore excellence.
An Offshore company 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:
- Tax Advantages
- Top Uses
- Key Corporate Features
- Incorporation Packages
- Registration Requirements
- Corporation Taxation
- Company Corporate Details
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.
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 (MLATs) 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 in Panama 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
- Professional service company
- Holding Company
- Licensing company
- Internet services
- Asset protection Company
Key Corporate Features
|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|
- 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
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 whereby 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 and tax incentives 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 the 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
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Financial Statements Required
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).
Powers of the Company
Companies incorporated in Panama have equal power to that of a natural person.
Registered Office Required
Every Panamanian corporation must have a registered office
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.
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 an individual or a corporate body, issued one share valued at US$100.
Meetings can take place anywhere in the world.
There are no exchange controls of any kind
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 Registration with Offshore Protection
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