TBA & Associates

England, London
Phone: +44 203 282 7159
info.uk@tba-associates.com

USA, Wilmington
Phone: +1 (302) 487 0969
info.us@tba-associates.com

We provide FREE consultancy services. Do not hesitate to Contact us for more information or prices!

Panama company formation services

Set up your IBC company in Panama

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 and stable economy.
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. For these reasons, Panama is a great option for those who are looking for set up an ibc company or an offshore ibc incorporation.

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.

Benefits and advantages to register your business company in Panama

  • No reporting requirements.
  • It is possible to keep a business under direct control while maintaining complete confidentiality. Names of beneficial owners are not publicly available.
  • It is not required to file any changes to ownership schedule, after the registration is complete.
  • It is not required to maintain a legal address.
  • No Citizenship or residency requirements or restrictions with respect to Owners, Directors and Officers as with most other tax havens.
  • Stockholders’ and Directors’ meetings may be held anywhere in the world.
  • Capital Shares may be issued in a nominative form, or to “Bearer” – the ideal protection of the Corporation owner’s identity and total privacy.
  • Funds and accumulated offshore profits can be deposited or invested in any country in the world without becoming subject to taxation in Panama.
  • One person might hold all three positions of a President, Corporate Secretary and Treasurer.
Other common advantages of Panama IBC’s are:

Ultimate financial privacy

Asset protection

Income Tax Reduction, or elimination

No inheritance, succession or gift taxes

Protection from inflation

Reduction in legal liabilities

Reduction in operating expenses

Freedom from currency exchange control

Local Government concessions, subsidies and support

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

Easy access to North American and European Capital Markets

No International Trade Tariffs

No annual tax return requirements

Must have a resident secretary.

No import/export quantity limitations

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 your Panamanian International Business Company 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.

Name restrictions

A name that is similar to or identical to an existing company. Names of well known companies incorporated elsewhere or a name that implies government patronage.

Language of name

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

Names requiring consent or license

Bank, building society, savings, insurance, assurance, reinsurance, fund management, investment fund, trust or their foreign language equivalents.

Time to incorporate

One day, subject to name approval.

Suffixes to denote Limited Liability

All Panamanian corporations must end with the suffix Corporation, Incorporated, Sociedad Anonima or the abbreviations Corp, Inc or SA. They may not utilise the suffix Limited or Ltd.

Disclosure of Beneficial Ownership to Authorities

Resident agents of Panamanian entities are now required to file certain information on the Ultimate Beneficial Owner (UBO) of the entity at the local Superintendence of Non-Financial Institutions.

Approved in March 2020, Law No. 129 provides the legal framework for the establishment and regulation of a beneficial owner register in the country and will apply to all entities incorporated and registered in Panama which includes companies, foundations, SRLs, and foreign entities registered at the Panama Public Registry.

The register will not be available to the public and will only be accessible to resident agents, registered legal entities (such as trust companies and banks), and two designated officers of the Superintendence that meet the required security and technical safeguards.

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.

Double taxation treaties

Last two years, 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 Organisation 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.

Taxation

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

Annual government fees

In each anniversary of the date of incorporation the company must pay US$ 300 for the Annual Franchise Tax to the Panama Government.

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.

Are you looking out to incorporate offshore IBC Company? IBC has risen in stature to become one of the most sought after IBCs in the International Financial Services World. It has numerous benefits such as exemption from taxes all income of an IBC, exemption from taxes on all dividends paid by an IBC, exception from taxes on all interests, rent, compensations and other amounts paid by an IBC. TBA & Associates is the optimum online destination that provides finest IBC incorporation services!

Register your Company today!

Our Business Development Team is ready to guide and assist you to discuss all options you have and to provide you with all the support you need to enable you to take the right decision facing your specific needs!

All our Consultancy and Advisory services are completely FREE!

Packages and Prices!

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Inclusions

Year 1 Incorporation and service fees.
Optional Services (Bank Account opening, Nominee services, Certification of documents, amongst others).
Annual Renewal service fees for year 2 and subsequent years, to keep your company in good standing and full Compliant at all times.

Our company licensing services

— What we do and do not do

Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.

TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!

Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.

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