Panama - Offshore company - Overview

Panama occupies an area that connects north and South America, being bordered on all forth sides by Costa Rica, Colombia, Caribbean Sea and Pacific Ocean. Panama jurisdiction has become one of the most important tax havens of the Western Hemisphere, due to its structure, geographical position, political stability and economical characteristics. The country has taken very important steps for economy modernization and promotion of foreign investments, becoming equally well known as a favorable and stable international offshore financial center, with hundreds of offshore banks, and thriving business of offshore incorporations.

Most Panamanian and foreign investors choose to form Corporations. The country does not impose any restrictions on incoming and out coming monetary transfers, no exchange controls, currency limitations and reporting requirements.
Panama jurisdiction is completely sovereign from any other country in the world. There are no any Mutual Legal Assistance Treaties between Panama and any other country. Panama is a genuine international trade and banking center that is well known and respected throughout the world. The original law establish for the formation of Panama Corporation is The Republic of Panama corporation law of 1927.
Panama is classified as a tax haven offering tax reducing opportunities to non-resident investors, and a plethora of offshore entities such as the offshore banks, offshore corporations (non-resident) and the Private interest Foundations(one of the most effective asset protection and real estate planning vehicles available today).

Offshore banks and companies in Panama and Panamanian corporations are used worldwide and well accepted by banks, investors and governments. The main advantages of incorporating an offshore company in Panama are: setting up of an offshore company is affordable and prompt; exemption from all local taxes for income received outside of Panama; the offshore company in Panama activities are not controlled by government; high level of privacy protection; Panama offshore company can be managed from any place in the world; well-developed financial services industry; offers the most strict corporate book secrecy and banking secrecy laws available in the world; no foreign exchange restriction; existence of bearer shares; no capital payment required for the incorporation of Panama offshore company and no limitation on Panama offshore company lawful activities.


General Information

Type of entity


Type of law


Limited Liability


Company Registration Timescale

Two weeks

Foundation Capital minimum


Foundation Capital currency


Publicly accessible records

Foundation Charter


Foundation Regulations




Name of Founder


Officers of Foundation

Protector Required


Corporate Protector permitted


Minimum number of Council Members


Corporate Council Members permitted


Meeting location


Local Requirements of Foundation

Registered Agent


Language of Charter

Any, but a translation is required

Language of Regulations

Any, but a translation is required


Requirements to prepare


Audit requirements



Annual Government Fee

US $300

Change in domicile permitted


Panama Incorporation Costs

Company registration

890  Euro

Bank account

490  Euro

Annual Tax( from 2nd year)

690  Euro

Optional/Additional costs

Nominee Director/year

290 Euro

Nominee Shareholder/year

 290 Euro

Certificate of Good Standing

 150 Euro

Power of Attorney

 150 Euro


 150 Euro

Courier Delivery

 80 Euro