Time of establishment of the company
Panama is located 2 hours flight time with Miami and is famous for the canal connecting both Americas. For a long time it has been a highly valued place for the establishment of foreign companies. In Europe, however, a little less, because Panama is still not widely known in financial terms, probably because of the long distance and language barrier.
Panama is an international centre because of its location, but also retains its popularity as an international offshore jurisdiction. Since the 1980s, Panama has attracted a growing number of companies operating on the international market in various industries. These companies have decided to relocate to Panama because of the many benefits Panama offers to non-residents. Panama and more than 50000 registered companies.
Panama allows the incorporation of companies with a nominee director, which guarantees anonymity in the public register. The shares of the Panama-based company are bearer shares, thus guaranteeing the anonymity of the shareholders.
What to keep in mind
This jurisdiction will correspond to companies operating in industries such as import/export, oil trade, offshore, mining, transport and rental of all types of ships and aircraft.
Type of the company
IBC – International Business Company – is usually established in Panama. You can also use the abbreviation LTD if you want to stick to the English version.
Company registration procedure
Registration of the company:
- Checking the availability of the company name,
- Preparation of the articles of association and the company’s statute,
- Submission of documents to the Public Register of Panama.
No restrictions on the number of shareholders, however, a minimum of one shareholder is required to establish a company. Foreign shareholders and nominated service are allowed.
The Management Board requires the appointment of 3 directors, who may be both natural persons and legal entities.
The company must have a registered address in the territory of Panama, which will appear on the company documents and postal data of the company. It is possible to use the services of a virtual office with a dedicated telephone number.
Time to set up a company:
The time of establishing a company is about 5 days.
No minimum capital required.
Taxes and finances
The tax in Panama is 0% for companies which do not conduct business locally. There is no control over foreign exchange turnover, local taxes or VAT. Invoices for services therefore do not include any tax.
Accounting is not obligatory in Panama due to non-taxation. However, the bank where the account has been opened may in some cases require transactional documentation, including e.g. an invoice explaining the turnover of the account.
Your company will have a multi-currency bank account with Internet access to your account, VISA or ATM MasterCard card (you can obtain several cards). Obtaining an additional, anonymous VISA card is done on demand, and the bank where the company’s account was created is responsible for it.
A company registered in the company is obliged to extend its activity every year, which involves, for example, the payment of stamp duty and the re-establishment of the company’s governing bodies.
We stipulate that the last requirement is the legality of the company’s operations both in Panama and in the country in which it will operate. The creation of a foreign company should not and must not be used to legitimise illegal activities. The regulatory authorities in Panama do not allow financial activities, banking, betting, online gambling and insurance without a licence.
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