How to Incorporate a Limited Company/ International Business Company (IBC) in Panama
After you have submitted the proposed name of your IBC to us, approval of the company name can be obtained within several hours. You can carry out a free name check now using our Company Name check service. We then present the Memorandum and Articles of Association of the company to the Registrar, a Certificate of Incorporation will be issued and your new company is incorporated.
All Panamanian corporations must end with the following designations or their abbreviations: Corporation (Corp), Incorporated (Inc) or Sociedad Anónima (SA); the designation Limited (Ltd) may not be used. This name may be expressed in any language but can not be either identical or deceptively similar to a name that is already used by another corporation. Formacompany can reserve your chosen company name for up to 10 ten days.
Formacompany has over 20 years’ experience forming companies in Panama and across the world, and our staff will be available to offer advice and support through the entire incorporation process, from initially selecting a suitable company name through to finally commencing taxable activities.
What you need to set up a Limited Company/ International Business Company (IBC) in Panama
To begin incorporation of your Panamanian IBC we will require the following:
- Your company name
- The full name, date of birth, address and nationality of all directors
- The full name and address of all shareholders
Documents you are required to provide:
- Proof of identity (passport, national identity card, photographic driving licence).
- Proof of residential address (gas/electricity bill or credit/debit card bank statement dated within the last three months)
- All IBCs must have a registered agent and a registered office. The registered office is where documents may be legally served on the company. The registered office must be a physical address in Panama – this is included in our Standard Company Formation Package.
Share Capital requirements
- The standard authorised share capital for your company is US $10,000.
- The share capital is usually divided in to 100 common voting shares of US $100 or 500 common voting shares at no par value. The minimum issued capital is one share.
- Share capital does not have to be paid into a bank account before the incorporation.
- The capital may be expressed in any currency.
Ready Made Companies
- We have shelf companies in Panama currently available, with a standard Memorandum and Articles designed to permit most general activities; making it possible to commence business at very short notice. Our ready made companies are in good standing, are not the subject of any insolvency proceedings and have not entered into any contracts or engaged in any business activities.
What it costs to set up a Limited Company/ International Business Company (IBC) in Panama
Setting up an International Business Company in Panama will cost £1040; this includes all duties, taxes and professional fees.
What you receive after setting up your new business
- Original Certificate of Incorporation
- Original share certificates
- Original government receipt as evidence of payment of annual company registration and license fees
5 Advantages of Registering a Limited Company/ International Business Company (IBC) in Panama
- A Panamanian IBC is exempt from local taxes. There is total tax exemption on all and any business activity or transaction carried on outside the jurisdiction
- Incorporating in Panama ensures confidentiality for the directors and shareholders. There is no requirement to disclose ownership of the company.
- A Panamanian IBC is easy to administrate. There is no requirement to file annual returns or financial statements. Articles of Incorporation may be drafted in any language provided they are filed along with a translation into Spanish
- A Panamanian IBC requires minimal infrastructure. Under Panama's Corporation Law it is possible to have a corporation owned by only one person but the Law requires a minimum of three directors (a president, a treasurer, and a secretary), we can provide nominee services for compliance purposes. In Panama, corporate shareholders are permitted.
- There is minimal ongoing obligation to manage a Panamanian IBC. There is no requirement to hold an Annual General Meetings of shareholders or directors and members or administrators may hold any necessary meetings in any country. All meetings cam be attended by proxy.
Important Information about Incorporating a Limited Company/ International Business Company (IBC) in Panama
- It takes five to seven days to incorporate a company in Panama.
- The company may engage in any type of civil or commercial activities.
- There are no limitations on the maximum number of directors or shareholders.
- It is not mandatory to present the changes of administrators at the Public Registry.
- Panama Corporations are incorporated under the Corporation Statute Law 32 of the 1927 Panama Commercial Code.