Republic of Panama

The Republic of Panama is situated close to other offshore jurisdictions in Caribbean area. Its Companies Act allowes formation of tax-free companies and was adopted already in 1920´s. Panama is therefore considered to be the oldest tax haven.

Investors settle in Panama especially for its high level of privacy, tradition as offshore jurisdiction and beneficial tax legislation. Panamanian legislation recognizes several types of companies types, e.g.: International Business Company („IBC“), foundations, insurance companies or banks.

Legal formInternational Business Company
LegislationLey 32 de 1927 sobre Sociedades Anónimas
Foundation timeOnce received all required documents from a client, a new IBC is incorporated within 4 - 6 days and documents are delivered within 2 weeks.
ShareholdersMinimum required: 1
Form: physical person/corporate body (both possible)
Nationality: Any (Panamanian nationality is not necessary)
DirectorsMinimum required: 3
Form: physical person/corporate body (both possible)
Nationality: Any (Panamanian nationality is not necessary)
Others: local director recommendable to ensure higher anonymity
Share capitalNo specific requirements
Bearer sharesAllowed
TaxesA Panamanian International Business Company is not subject to any tax or duty on income or profits provided it does not carry on business in Panama (taxation is based on territorial principle). IBC is not considered a tax resident. IBC does not have to file a tax returns, has no TIC and does not pay VAT.
AccountancyFilling of accounts not required
AuditNot required
Anonymity and confidentialityCompanies register is not publicly accessible (details of shareholders are only known to the licensed Registered Agent and is therefore kept in complete confidentiality). Names and addresses of directors have to be stated in Articles and Memorandum of Association. (anonymity is ensured by nominee service)
OtherRegistered office: must be maintained in Panama
General meetings: Could be held anywhere in the world
Ready-Made company: Yes

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