Jurisdiction

Setting up your business in Panama
Most relevant features

Set your business in Panama

An excellent Latin America and the Caribbean option for international trade.

Panama has become a popular destination for individuals seeking to protect their wealth through estate planning and asset protection.

Panama offers several advantages, including

Favorable tax system – Strong privacy laws – Stable economy.

Affordable
and prompt

Managed from any place in the world

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No paid-in capital required

See all Advantages

Why register your company with us?

We make incorporating a company as easy as possible, so you can focus on the important things.

We have a full suite of startup services, like banking, bookkeeping and tax planning consultancy, which means Eurofinanzza not only helps you get started, but supports you in your continued success as your one-stop shop.

Tell us about your
business

We’ve taken the complexity out of forming your business company. Our online form can be completed in less than 10 minutes.

We take care of the
paperwork

Based on the information you provide, we prepare all required documents and file them directly to the appropriate entity.

Receive your
documents

Once your incorporation documents have been approved by the state, you’ll receive your completed company package by email.

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How to incorporate your business company in Panama

For over 80 years the Panamanian Corporation (“Sociedades Anónimas”) have been recognized, worldwide, as a corporate vehicle that can be successfully used in a variety of International Business, Asset Protection, Estate Planning Structures, among others.

Incorporating an IBC company in Panama

International investors, financiers and businessmen find Panama an ideal foreign base country for world-wide operations and transactions. Panama taxes according to the territoriality principle (that is, it does not tax foreign-source income), only the income produced locally is taxable, disregarding the citizenship of the taxpayer. Dividends are not included as income subject to income tax.

Due to its structure, geographical position, political stability and characteristics of its economy, Panama has become one of the most important tax havens of the Western Hemisphere. It has excellent international transportation and communication systems; the United States Dollar has been a currency of legal tender for more than ninety years.

Panama has taken several steps to modernise its economy and promote foreign investment. Most Panamanian and foreign investors choose to form Corporations. There are no exchange controls, currency restrictions or reporting requirements, and Panama imposes no limits on monetary transfers to and from the country.

Why registering your business company in Panama?

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Incorporation in 24-48 hours.

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Panamanian Companies can be incorporated without regards to the nationality of its directors and shareholders.

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Incomes generated by a Panamanian Corporation outside of the Panamanian territory are tax exempted.

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The authorized capital does not have to be paid in full or partially.

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There is no need to file any financial reports or tax returns with any government entity in the Republic of Panama, provided that the company does not receive income from Panamanian source.

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Legal entities of any jurisdiction may act as directors, officers and shareholders of a Panamanian Corporation.

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There is no need to hold annual meetings of Directors or Shareholders.

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Directors and Shareholders may attend to the meetings personally, by proxy, by phone or by any other electronic means.

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Three (3) directors are required, either natural persons or legal entities.

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The officers (President, Secretary and Treasurer) do not have to be directors and one person can occupy several or all offices. Physical persons or legal entities can also be appointed as officers. Officers are not mandatory.

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Shares may be issued to the bearer or in nominative form. In any event, the name of the shareholder is not required to be registered in the Panamanian Public Registry, thus, ensuring total anonymity.

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A corporation can effectuate transactions and have assets in any part of the world without the obligation of maintaining assets in the Republic of Panama.

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Panamanian Corporations are empowered by law to conduct any lawful act.

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Absence of exchange control.

Panama is not on the OECD blacklist and will soon be off the blacklist of many countries, thus allowing the company to operate and go into transactions with more freedom.

Other benefits of Panamanian Corporations

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Ultimate financial privacy

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Asset Protection

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Income Tax Reduction or elimination

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No inheritance, succession or gift taxes

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Protection from inflation

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Reduction in legal liabilities

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Reduction in operating expenses

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Freedom from currency exchange control

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Local Government concessions, subsidies and support

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Data on Owners and Directors is not publicly available and remain confidential

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Easy access to North American and European Capital Markets

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No International Trade Tariffs

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No annual tax return requirements

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No import/export quantity limitations

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No costly bureaucracy

Company Formation

Type of company for International Trade Investment

Generally, corporations are incorporated under the Corporation Statute Law 32 of the 1927 Commercial Code. Limited Liability Companies and Limited Partnerships are used also.

Procedure to incorporate

You can incorporate an IBC by presentation of the proposed corporation’s signed Articles of Incorporation before a Notary Public who creates a Public Deed for registration at the Public Registry.

Restrictions on Trading

Cannot undertake the business of banking, trusteeship and trust administration, insurance, assurance, reinsurance, fund management, investment funds, collective investment schemes or any other activity that would suggest an association with the banking, finance, fiduciary or insurance businesses.

Language of Legislation and Corporate Documents

Spanish and certified English translations.

Registered Office required

Yes, must be maintained in Panama at the address of the Registered Agent.

Name Approval required

Yes.

Time to incorporate

One day, subject to name approval.

Language of Name

Names may be expressed in any language using the Latin alphabet. The Registrar may request a Spanish or English translation.

Disclosure of Beneficial Owner to Authorities

No.

Compliance

Authorised and Issued Share Capital

The standard authorised share capital is US$10,000 divided in to 100 common voting shares of US$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.

Classes of Shares permitted

Non-voting shares, preferred shares and registered shares. Bearer shares can be issued but no-par-value and bearer shares must be fully paid when issued. The registered agent must keep the bearer shares certificate in safe custody and must notify the Registrar that the shares have been issued.

Taxation

No corporation tax is levied on non-Panamanian sourced income.

Double Taxation Treaties

In the last twenty months, the Republic of Panama has signed several double taxation treaties with countries such as Mexico, Barbados, Netherlands, Portugal, Spain, Singapore, France, Ireland, Israel, Italy, South Korea, Czech Republic, Qatar, United Arab Emirates and Barbados. They were duly ratified by the Panamanian congress and in consequence are considered local laws of Panama. Recently, the United Kingdom has signed a treaty and is pending to be ratified by Panamanian Congress soon. In the case of Austria and Vietnam they are at different stages of negotiation.

The purpose for the Republic of Panama is triple: First, to cooperate in the implementation of regulations against international tax evasion. Second, to fulfill international requisites with the Organization for Economic Cooperation and Development in order to be considered as non-taxation sanctuary of international tax evasion. Third, to avoid the double payment of taxes of foreign citizens or companies domiciled in Panama and in their countries of origin as well.

License Fees

Annual Franchise Tax of US$400 is payable – please check remarks below.

Financial Statement requirements

No requirement if income is of non-Panamanian sources.

Directors

Both corporations and natural persons may act as directors and the minimum number of directors is three. They may be of any nationality and need not be residents of Panama. Panamanian companies are also required to appoint a minimum of three officers (president, secretary and treasurer) who may also be the directors.

Company Secretary

A company secretary must be appointed, who may be a natural or corporate person. The company secretary may be of any nationality and need not be a resident of Panama.

Shareholders

The minimum number of shareholders is one. Shareholders’ records are not publicly accessible; however, all relevant information and identification documents must be deposited at the local registered agent’s office.

Which jurisdiction best suits my business?

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