Panama Company Formation

One of the most established offshore jurisdictions with strong privacy laws and territorial taxation.

Panama has been a leading jurisdiction for international company formation since 1927. The country offers one of the world's most favorable legal frameworks for offshore companies, combining strong privacy protections with political and economic stability.

The Panama Corporation (Sociedad Anónima or S.A.) is the most popular structure for international business activities. It provides complete tax exemption on income generated outside of Panama under the territorial tax system.

Key Advantages

• Complete Tax Exemption – No taxes on income from foreign sources under the territorial tax principle
• Strong Privacy Protection – Bearer shares available (held in custody), no public beneficial owner registry
• No Minimum Capital – No requirement to deposit or maintain minimum share capital
• Asset Protection – Robust legal framework protecting company assets from foreign creditors
• Quick Formation – Complete incorporation within 5-7 business days
• Remote Formation – No travel to Panama required, entire process handled remotely

Formation Process

Our complete formation package includes everything you need to establish and operate your Panama Corporation:

• Name reservation and registration with the Public Registry
• Preparation of Articles of Incorporation
• Appointment of three nominee directors (if required)
• Registered agent and registered office for one year
• Corporate kit including share certificates, corporate seal, and minute book
• Bank account introduction (subject to bank approval)

Corporate Requirements

Understanding the requirements helps you determine if a Panama Corporation is the right structure for your needs:

• Directors: Minimum of 3 directors required (can be non-residents)
• Shareholders: Minimum of 1 shareholder (can be corporate)
• Share Capital: No minimum required, typically USD 10,000 authorized
• Annual Meetings: Can be held anywhere in the world
• Accounting: No requirement to file accounts with authorities
• Annual Fee: Franchise tax of approximately USD 300 per year

Compliance Note

While Panama does not require local accounting or auditing, beneficial owners may have reporting obligations in their country of residence. We strongly recommend consulting with a tax advisor familiar with your jurisdiction's CFC rules and reporting requirements before establishing an offshore structure.

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