The creation of an IBC in Panama is a very straightforward process and such a company will be free of all Panamanian taxes as long as its business activities are carried on outside of the country.
When it comes to a Panama IBC and offshore banking, a company can of course request an offshore bank account be opened at a Panamanian bank and because such entities are regarded as being some of the most stable international banks in the world this option is often ideal. This article looks at the features and benefits of both Panama IBCs and Panama offshore bank accounts.
The Republic of Panama is a Central American country bordered by the Caribbean Sea, The North Pacific Ocean, Columbia and Costa Rica. It is of major strategic importance particularly to the US because of the Panama Canal and it has a very strong service sector based economy. The law in Panama is actually based on the Spanish Civil Code, however when it comes to company law the structures and legislations applicable have been developed from the corporation law of Delaware. Although the country’s official language is Spanish, both English and Spanish are used side by side in the business community.
The features and benefits of a Panama IBC are
When it comes to the taxation of an offshore company established in Panama that company will be free of all taxes so long as the company’s business activities are conducted outside of Panama with the exception of the yearly franchise tax which is applied to all companies but which only amounts to a nominal fee of USD 150.
A Panama IBC must have at least one shareholder and because the shareholders’ names appear on public records it is usual for a company to use nominee shareholders and then exact a transfer of shares as such action does not have to be officially registered.
When it comes to the directors of a company, their names also have to appear on public records and they have to appoint a company president, secretary and treasurer. These offices can be held by one person and can be held by a nominated individual or even by the directors themselves.
When it comes to reporting requirements as long as all business is conducted outside of Panama no reports or records need to be filed. The only major requirement that the Panamanian authorities insist upon is that the company has a Resident Agent in Panama who must be a Panamanian registered lawyer or firm of lawyers.
Offshore Banking in Panama
Panama is home to the second largest offshore banking centre in the world after Switzerland and is considered to be a stable and secure international banking jurisdiction. The banking secrecy laws in Panama are almost impenetrable which previously made the country a target for close OECD and US inspection. In 1999 Panama introduced changes to their banking laws to bring them in line with the European and American regulatory standards for banking centers and there now exists legislation to ensure any suspected criminal activity be subject to full exposure and prosecution for example.
The banking laws remain incredibly secretive however allowing for the protection of legitimate account holders and as a result offshore banking in Panama is very popular. It’s possible to access the full range of offshore company services and to establish offshore corporate accounts in Panama to be used in conjunction with a Panama IBC, furthermore it is also possible to open personal bank accounts in Panama, to have access to credit cards, debit cards, time deposits, savings accounts and local or international checking accounts.
All of the Panama IBC incorporation and bank account opening services as detailed in this article together with such services as mail forwarding and company administration services are supplied by a large number of the best intermediaries in the business and fees start from USD 500 for a simple offshore bank account introduction and USD 750 for straight forward company incorporation.
