Panama Offshore Company Formation

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.

Advantages of a Panama Offshore Corporation

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.

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 Offshore (IBC) Company 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

Panama Company 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 of a Panamanian Offshore Company