Panama International Business Company (IBC) Company Formation
Panama is a popular offshore jurisdiction because of the large number of privacy and tax advantages from which offshore companies incorporated there benefit. Incorporating an IBC in Panama provides extensive confidentiality for the beneficial owners as company registers are not available for public inspection, and shareholders enjoy exemption from all local taxes and duties, including income tax, capital gains tax and corporation tax.
A Panamanian IBC can have a name in any language provided that it is unique and that it ends with the following designations or their abbreviations: Corporation (Corp), Incorporated (Inc) or Sociedad Anónima (SA); the designation Limited (Ltd) may not be used. Formacompany can reserve your company name for up to 10 ten days.
It is a requirement that a Panamanian IBC must have a registered agent and a registered address in Panama; this is where all official correspondence is sent. These are both provided as part of our incorporation service.
A Panamanian IBC requires three directors. Director details are not filed on the public register.
A Panamanian IBC requires a minimum of one shareholder. Shareholders’ names are not filed on the public register.
The standard authorised share capital is US $10,000 divided into 100 common voting shares of USD 100 each or 500 common voting shares of no par value; the capital may be expressed in any convertible currency. The minimum issued capital is either one share of no par value or one share of par value. Share Capital does not have to be paid into a bank account before the incorporation.
There is no need to file any company tax returns in Panama if all the income was derived from offshore transactions. There is no requirement to file financial statements if the income is from sources outside of Panama.
The incorporation of a new company takes approximately one week from the date we receive proof of address and identification.
Proof of Identity
As part of our due diligence we require proof of identity in the form of a passport copy for all directors and shareholders of the company.
A visit to Panama is not required to incorporate your company.