Company Formation in Panama: A Strategic Business Hub

Start Your Business in Panama with Ease and Efficiency

Looking to expand your business internationally? Company formation in Panama is a strategic choice, offering numerous advantages for global entrepreneurs. Panama’s favorable business environment, tax benefits, and straightforward incorporation process make it an attractive destination for new companies.

Panama for Offshore Company Formation

Panama is one of the most attractive locations in the world for offshore company formation, offering unparalleled benefits for international investors and entrepreneurs. With its strategic geographic location, stable political environment, and tax-friendly policies, Panama has become a preferred destination for those looking to establish businesses outside their home countries. Whether you’re an individual or a business seeking tax advantages, privacy, or global trading opportunities, Panama’s offshore corporate structure is designed to facilitate international business while ensuring confidentiality and security.

Why Choose Panama for Offshore Company Formation?

Favorable Tax Environment
Panama operates on a territorial tax system, meaning that foreign-sourced income is not subject to local taxation. This makes it an ideal jurisdiction for those seeking to minimize tax liabilities. Offshore companies in Panama are exempt from income, corporate, capital gains, and estate taxes as long as they do not engage in business within Panama itself.
High Level of Confidentiality One of Panama’s key attractions for offshore company formation is the level of privacy and confidentiality it offers. The personal information of shareholders and directors is not publicly accessible, ensuring that your identity and business dealings remain private. Furthermore, Panama does not require financial reporting or audits for offshore companies.
Flexible Corporate Structure
Whether you opt for a Corporation (Sociedad Anónima – S.A.) or a Limited Liability Company (LLC), Panama’s corporate laws provide significant flexibility. Offshore companies can be managed directly by the owner or through a nominee director, offering more options depending on the desired level of involvement and privacy.
Ease of Incorporation
Setting up an offshore company in Panama is a relatively straightforward process, which can be completed in as little as 3 to 5 days. The process requires one shareholder, and the company must have three directors (which can be individuals or corporations). The company’s capital can be easily divided into shares, and shares are fully transferable, adding further flexibility.

Types of Offshore Companies in Panama

Corporation (S.A.): The most popular form for offshore companies, offering limited liability, flexible corporate management, and anonymity for shareholders and directors.
Limited Liability Company (LLC): Combining the features of both a corporation and a partnership, the LLC is favored for smaller entities looking for liability protection without the complexities of corporate governance.
Private Interest Foundation: While not a traditional business entity, these foundations are often used for asset protection and estate planning, providing flexibility for wealth management.

How to Set Up an Offshore Company in Panama

Steps to Open a Bank Account in Panama

Here’s how to open a bank account in Panama:

Choose Your Bank: Panama has a variety of banks, including local and international institutions, offering different levels of services and fees.
Top 10 banks in Panama:
- Banco General.
- Banistmo.
- Banco Aliado.
- Banco Nacional de Panama.
- Credicorp Bank
- BAC International Bank.
- Citibank.
- Santander
- Global Bank Corporation
- Atlantic Security Bank and more
Choosing the right bank depends on your specific needs—whether it’s for personal banking or your offshore company.
Prepare Your Documentation: The documents required to open a bank account in Panama usually include:
- A valid passport.
- Proof of residential address (like a utility bill).
- Bank references from your home country.
- Financial statements or proof of source of income.
Some banks may request additional information, especially if you’re setting up a business account. It’s important to check with your chosen bank for their specific requirements.
Account Setup Process: The process for opening a bank account typically takes a few weeks. While some banks in Panama may require in-person visits, others offer remote account opening options, especially for offshore companies. It’s advisable to consult with a legal advisor or registered agent in Panama to ensure the process runs smoothly.

Panama Bank Account for Foreigners

For foreigners looking to open a bank account in Panama, the process is relatively simple, but it’s essential to prepare all the required documents in advance. Panama’s banking system is highly regarded for its stability and ability to accommodate foreign investors and expatriates. The ability to bank remotely or set up accounts without being physically present makes Panama a convenient option for international clients.

Costs of Offshore Company Formation in Panama

The cost of incorporating a Panama offshore company varies depending on the type of entity you choose. Generally, the first-year costs for forming a company are around $1,500 to $2,000, including government fees and legal services. Annual maintenance costs, including the registered agent fee and corporate taxes, typically range between $500 and $1,200 per year.

Industries Suitable for Offshore Companies in Panama

Panama is particularly favorable for companies engaged in international trade, e-commerce, financial services, and shipping. Offshore companies can also be structured for wealth management, offering significant benefits in asset protection and estate planning.

Take the First Step Toward Panama Offshore Success

Whether you are looking to optimize your tax strategy, ensure confidentiality, or expand your global footprint, Panama is the perfect jurisdiction for your offshore business. Contact us today to learn how we can assist you in setting up a successful offshore company in Panama.