Panama IBC Corporations

The territorial source principle is the basis of taxation in the Republic of Panama. This means that any income that is obtained from operations outside of the country of Panama is not taxable. The client must consult with a legal or tax specialist in his country of residence or nationality to comply with his local tax responsibilities.

The registered capital for the corporation is simply a nominal figure that projects the estimated value of the entity and does not need to be paid or deposited.

The directors and shareholders of the company can be members of any nationality and residents of any country.

Incorporation costs in Panama are competitive when compared to other jurisdictions.

Corporations that engage in business outside of Panama are not required to obtain a commercial license or operation notice (this is called “Aviso de Operacion” in Panama).

The approximate time frame to establish a corporation in Panama is four to five business days.

The identities of corporation shareholders are kept strictly confidential and are not registered at the Panama Public Registry. There is a beneficial owner registry of companies, however, it remains private and guarded by a superintendence in case they are required by a Panamanian authority.

Share certificates are issued in private documents, and the officers and directors of the corporation are not required to be shareholders.

Annual maintenance costs for a Panama IBC, such as resident agent fees and annual corporate taxes, are approximately USD 650.

Shareholder and director meetings can be held in the Republic of Panama or they can be held in any other country.

Panama offers a globally recognized financial infrastructure that values and safeguards financial privacy.