Panama Fact Sheet
General
| Type of company | IBC |
| Political Stability | Good |
| Common or Civil Law | Civil Law |
| Disclosure of Beneficial Ownership to Government Authorities | No |
| Migration of Domicile Permitted | Yes |
| Tax on Offshore Profits | Nil |
| Language of Name | Any language (Spanish or English translation required). Must have approved ending (Incorporated; Corporation; Sociedad Anonima; Inc.; Corp.; S.A.) |
| Shelf Company Availability | Yes |
Corporate Requirements
| Min. No. of Shareholders | 1 |
| Min No of Directors | 3 (Resident anywhere) |
| Min. Share Capital | None, but all issued shares must be paid up. |
| Corporate Directors | Yes |
| Company Secretary Required | Yes (the same person can be director and secretary) |
| Usual Share Capital | US$ 50,000.00 |
| Bearer Shares | Yes (but immobilized with local registered agent/foreign professional intermediary) |
| Production of Accounts | Discretion of Directors |
| Audit of Accounts | Discretion of Directors |
Local Requirements
| Registered Office | Yes |
| Registered Agent | Yes |
| Company Secretary | No |
| Local Directors | No |
| Local Shareholders | No |
| Local Meetings | No |
| Government Register of Directors | No, but names and addresses of directors and officers are included in Articles of Incorporation, and such data is available to the public, however nominees are allowed. |
| Government Register of Shareholders | No |
Annual Requirements
| Annual Return | No |
| Audited Accounts | No – but accounts must be kept (anywhere) and directors must notify their location to Registered Agent |
| Minimum Annual Tax/Licence Fee | $250 |
Restrictions on Trading
- Cannot conduct banking, trusteeship and trust administration, insurance, assurance, reinsurance, fund management, investment funds, collective investment schemes or any other activity suggesting association with banking, finance, fiduciary or insurance businesses without appropriate authority or licence.
Attractive Features
- Full exemption from taxation on any business activity or transaction carried on outside Panama.
- If the company conducts its business outside of Panama it is exempt from all income tax, capital gains tax, dividend tax, and stamp duties on transfers of shares and other property.
- Speedy incorporation procedures (3-5 working days from receipt of all papers) and simple ongoing administration.
- Reasonable formation and maintenance costs and fees.
- Complete business privacy and confidentiality.
- IBCs may engage in any lawful business in any country and may carry on transactions in whatever currencies they choose.
- Shareholders and /or directors may hold their meetings in any country and they may attend such meetings by proxy.
- There are no exchange controls in Panama.
- Well developed professional infrastructure.
- Same day company incorporation service.
- Neutral tax jurisdiction.
- The Government has established a new programme allowing for multi-year work permits of up to four years duration and relaxed residency rules.