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Panama Company Formation – Offshore Business Registration

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12

years’ experience

1000+

companies registered

Panama Company Formation –
Fast & Private Offshore Setup

Why Register a Company in Panama?

Panama is where global trade happens. Its strategic location and the Canal make doing business in Panama a clear choice for international expansion. This plugs your company directly into global trade arteries, ensuring access to the Americas and beyond.

But honestly, you probably don't care that the Panama Canal is a logistical wonder of the world. Let's be real: you're interested in how Panama can save you money. Аnd we will answer you! The Panama business registry and its legal framework offer robust asset protection and confidentiality. So, if you're too embarrassed to show off your assets, Panama keeps secrets.

However, if shame is just a word to you, try Panama's offshore income tax rate. It's a stunning 0%. Your global profits stay in your pocket. A minimal annual fee keeps your Panama company registration in tip-top, tax-efficient shape.

As they say, it's not tax fraud if you're in the right jurisdiction. Let’s discuss!

Types of Companies in Panama

Panamanian law offers several flexible structures for doing business in Panama. You can pick the one that best suits your Panama company formation strategy.

The International Business Company (IBC) is the most popular choice for a Panama offshore company. It functions as a Sociedad Anónima but is tailored for international operations, offering limited liability. If income is earned outside Panama, it's tax-exempt. With a minimum of one shareholder and three directors, plus 100% foreign ownership allowed, it's incredibly flexible for global business in Panama.

The Limited Liability Company (S.R.L.) is a flexible alternative, similar to US LLCs. It protects owners' assets and limits each partner's liability. An S.R.L. needs a minimum of two founders and is exempt from taxes on offshore income. This type of Panama business is ideal for closely held or family-run ventures where member confidentiality is key.

The Corporation (Sociedad Anónima – S.A.) is the most common company type in Panama, with the IBC being its offshore application. It requires two founders at inception (one shareholder afterward) and at least three directors. The S.A. offers 0% tax on dividends and forms the bedrock for a stable Panama company registration corporate base.

The Sole Proprietorship (Empresa Unipersonal) is the simplest form for starting a business in Panama, but carries unlimited personal liability. It's better for local, low-risk Panama businesses, lack corporate benefits.

Panama also offers private foundations for asset protection and estate planning. A foundation can be an IBC shareholder, adding protection and confidentiality. These benefit from the territorial tax system, optimizing your doing business in Panama for intergenerational wealth.

Panama Company Formation Requirements

Panamanian corporations (IBC/S.A.) require three directors, yet one person can efficiently fill all key roles, streamlining management despite director names being public in the Panama company registry. This also explains the demand for nominee services for those prioritizing privacy for their Panama offshore company during company registration.

To successfully start a business in Panama as a foreigner, it's crucial to select a unique name and add the appropriate legal suffix that denotes your entity type. For corporations, this might be "S.A.", "Corp.", "Inc.", "Limited," or "Ltd."; for LLCs, "S. de R.L."; and for Foundations, "Foundation" or "FP." A welcome perk: most companies face no minimum paid-up share capital requirements, lowering financial entry barriers for business in Panama. However, global standards demand thorough identity and source-of-funds verification, making an experienced local agent crucial for efficient Panama company formation.

Step-by-Step Panama Company Registration Process

Step 1: Define Your Ideal Structure and Secure
a Unique Name

Your journey into successful company formation in Panama kicks off with a truly pivotal decision. Pick the legal structure that perfectly aligns with your Panama business – perhaps it's a flexible IBC/S.A., a practical SRL, or a robust Foundation. And hey, make sure your brilliant company name is unique and ready for you in the Panama company registry.

Step 2: Transform Your Plans into Official Documents

Structure and name locked in? Fantastic! Now, you should transform your business vision into official Articles of Incorporation. These aren't just papers; they're the very foundation of your company, and once properly notarized, they gain full legal power.

Step 3: Official Registration: Your Company Steps into the Spotlight!

Time for the grand unveiling! The next vital stage of Panama company registration involves filing your notarized documents with the Panama Public Registry. After successful registration, your company officially gains its legal status and public recognition.

Step 4: Obtain Your Tax Number (RUC)

Even if your Panama offshore company primarily focuses on international operations, getting your Registro Único de Contribuyente (also known as RUC or tax number, if you don’t like any formalities) is a non-negotiable step. This unique number, issued by the Directorate General of Revenue, will be your essential pass for any local interactions or for opening a bank account in Panama.

Step 5: Secure a Business License (If Necessary)

Planning to truly immerse yourself in doing business in Panama locally? Then you'll need the appropriate business license (Licencia de Funcionamiento). But here's some excellent news for international Panama business: for companies operating entirely offshore, this license is generally not required. Pretty convenient, wouldn't you agree?

Step 6: Open Your Corporate Bank Account

Opening a corporate bank account is a pivotal moment for a successful beginning. Yes, Panamanian banks are known for their high "Know Your Customer" (KYC) standards, which means meticulous preparation of all documents and proof of funds. But don't worry! Engaging an experienced representative will significantly streamline this final, crucial phase of your Panama company formation.

Taxation and Reporting in Panama

Panama beckons international business with its unparalleled territorial tax system. Imagine this: a stunning 0% tax on income generated entirely outside the country! This transforms your Panama offshore company into a magnet for global operations, ensuring your profits stay firmly in YOUR pocket. A 25% corporate tax only applies to locally sourced income, and dividends paid to foreign shareholders face no tax at all. This framework positions doing business in Panama not just as a choice, but as a strategic masterstroke for international investors.

What's more, you'll be pleasantly surprised: there's just a minimal annual franchise fee of 300 USD for corporations, keeping your Panama company registration in tip-top, tax-efficient shape. Yes, VAT rate stands at 7%, but most international transactions and exports are exempt, and capital gains tax is a mere 10%. Local municipal taxes apply to domestic companies, but overall, Panama's tax burden remains incredibly competitive, making company formation a truly smart move!

Despite all the tax advantages, Panama insists on a responsible and transparent approach to reporting. All companies, including offshore entities, are required to maintain accounting records and provide annual copies to their registered agent for the Panama company registry. These IFRS-compliant records can be kept outside Panama, but their accessibility is mandatory, guaranteeing transparency and adherence to international standards. Non-compliance can lead to substantial penalties, so remember: it’s better to comply than to pay!

Panama company registration

Name of the service

Start

Lite

Business🔥

Pro

Company registration, including state duty

Initial AML Compliance and KYC

Share certificate

Legal Address & Resident Agent

(1 year)

Company secretary for 1 year

Three Nominee Directors

Assistance with Opening a Corporate Bank Account

Premium Address for Proof of Address

(1 year)

Nominee Shareholder (1 year)

Shareholders’ Agreement

Total cost

2400 US

$1800

2600 US

$2000

4000 US

$3000

8500 US

$6500

*The offer is valid until 2025-10-31

Taxation and Reporting in Panama

Panama beckons international business with its unparalleled territorial tax system. Imagine this: a stunning 0% tax on income generated entirely outside the country! This transforms your Panama offshore company into a magnet for global operations, ensuring your profits stay firmly in YOUR pocket. A 25% corporate tax only applies to locally sourced income, and dividends paid to foreign shareholders face no tax at all. This framework positions doing business in Panama not just as a choice, but as a strategic masterstroke for international investors.

What's more, you'll be pleasantly surprised: there's just a minimal annual franchise fee of 300 USD for corporations, keeping your Panama company registration in tip-top, tax-efficient shape. Yes, VAT rate stands at 7%, but most international transactions and exports are exempt, and capital gains tax is a mere 10%. Local municipal taxes apply to domestic companies, but overall, Panama's tax burden remains incredibly competitive, making company formation a truly smart move!

Despite all the tax advantages, Panama insists on a responsible and transparent approach to reporting. All companies, including offshore entities, are required to maintain accounting records and provide annual copies to their registered agent for the Panama company registry. These IFRS-compliant records can be kept outside Panama, but their accessibility is mandatory, guaranteeing transparency and adherence to international standards. Non-compliance can lead to substantial penalties, so remember: it’s better to comply than to pay!

Panama Foundation 

Name of the service

Business🔥

Pro

Fund Registration, Including State Duty

Corporate Set of Incorporation Documents

Initial AML Compliance and KYC

Legal Address & Resident Agent (1 year)

Nominee Director

Nominee Protector

Total cost

6000 US

$3000

26000 US

$20000

*The offer is valid until 2025-10-31

Taxation and Reporting in Panama

Panama beckons international business with its unparalleled territorial tax system. Imagine this: a stunning 0% tax on income generated entirely outside the country! This transforms your Panama offshore company into a magnet for global operations, ensuring your profits stay firmly in YOUR pocket. A 25% corporate tax only applies to locally sourced income, and dividends paid to foreign shareholders face no tax at all. This framework positions doing business in Panama not just as a choice, but as a strategic masterstroke for international investors.

What's more, you'll be pleasantly surprised: there's just a minimal annual franchise fee of 300 USD for corporations, keeping your Panama company registration in tip-top, tax-efficient shape. Yes, VAT rate stands at 7%, but most international transactions and exports are exempt, and capital gains tax is a mere 10%. Local municipal taxes apply to domestic companies, but overall, Panama's tax burden remains incredibly competitive, making company formation a truly smart move!

Despite all the tax advantages, Panama insists on a responsible and transparent approach to reporting. All companies, including offshore entities, are required to maintain accounting records and provide annual copies to their registered agent for the Panama company registry. These IFRS-compliant records can be kept outside Panama, but their accessibility is mandatory, guaranteeing transparency and adherence to international standards. Non-compliance can lead to substantial penalties, so remember: it’s better to comply than to pay!

Government Fees and Franchise Taxes: What's Your Ticket to Panama Cost?

When planning your company formation in Panama, it's crucial to clearly understand the key government payments involved. For standard company registration as an IBC/S.A., the initial government fee is just 375 USD, and the annual franchise tax for corporations is a mere 300 USD. For foundations, this annual tax is slightly higher at 400 USD.

Launch Your Panama Business
with Icon.Partners!

At Icon.Partners, we simplify company formation in Panama into a straightforward path to success. We offer personalized consultations, helping you choose the ideal structure for your business to maximize Panama's tax advantages for your offshore company. Our comprehensive support and local agent collaboration ensure fast, fully remote incorporation, handling all documentation and compliance for you. Choose Icon.Partners – and we'll make doing business in Panama easy and efficient, allowing your business to thrive! The only thing you'll need to worry about is how to spend all that saved money.

5.0

case-4

"Their adept use of technology for communication and project management streamlined the entire process."

Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.

Oleksandr Platonov
CEO, VorfahrQR UG

Germany📍
Apr 10, 2024

5.0

case-5

"They have a modern and technological approach to doing business."

The client is satisfied with Icon.Partners' work, whose documentation is a vital part of their success. The client resolves legal and financial issues with the help of the team. Their excellent communication skills, timely delivery, modern approach, and diverse expertise make them a great partner.

Anton Tkachov
CEO of Gotoinc LTD

Cyprus📍
Jan 18, 2024

Reviews

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5.0

case-17

"Their adept use of technology for communication and project management streamlined the entire process."

Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.

Oleksandr Platonov
CEO, VorfahrQR UG

Germany📍
Apr 10, 2024

Reviews

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