Panama IBC Company

A time-tested jurisdiction for private wealth, LATAM business structuring, and international commerce.

Panama is a leading offshore jurisdiction with a modern legal system, strong banking sector, and stable economy. Its Sociedad Anónima (S.A.), or Panama Corporation, is a popular structure for entrepreneurs, private clients, and international investors seeking flexibility, privacy, and favorable tax treatment.

Why Choose a Panama Corporation?

• No corporate tax on foreign-sourced income
• Complete foreign ownership permitted
• No minimum capital requirement
• Confidential: Shareholders’ and directors’ details are not public
• Fast formation process — typically within 2–3 business days
• Well-regarded and bankable jurisdiction in Latin America

Our Panama Company Formation Package Includes

Formation & First-Year Services:

• Name check and company registration
• Drafting and filing of Articles of Incorporation
• Payment of government fees and annual franchise tax
• Registered agent and registered office for one year
• Appointment of nominee directors (optional)
• Digital corporate kit

Standard Corporate Documentation:

• Certificate of Incorporation
• Articles of Incorporation
• First Board Resolutions
• Share Certificates
• Register of Directors and Shareholders

Legal Framework

Panama Corporations are governed by Law No. 32 of 1927, one of the most investor-friendly and enduring corporate laws globally. The structure is extremely flexible and widely used for:

• International trade
• Investment holding
• Asset protection
• Private wealth structuring
• Intellectual property ownership

Panama also offers Private Interest Foundations for estate planning and wealth preservation.

Company Name Requirements

• Must end with: Corporation, Incorporated, Sociedad Anónima, or S.A.
• Certain names (e.g., Bank, Trust, Insurance, Fund) require special licensing
• Names must not imply governmental affiliation
• Any language may be used, provided it uses Latin script

Taxation in Panama

• No tax on income earned outside Panama
• No capital gains tax or withholding tax on foreign income
• No reporting required for foreign-sourced revenue
• Low annual government franchise tax (Flat rate)

Note: Local Panamanian-source income is taxable. Most offshore companies do not conduct business locally and remain fully tax-exempt.

Accounting & Reporting Requirements

• No annual return, audit, or financial statement filing
• Must maintain accurate internal accounting records
• Records may be stored anywhere in the world
• Companies must retain records for at least 5 years

Required Documents for Incorporation

For each Director, Shareholder, and Beneficial Owner:

• Notarized copy of valid passport
• Proof of residential address (dated within 3 months)
• Professional reference letter (from banker, accountant, or attorney)

If corporate entity:

• Apostilled company documents
• Certificate of Good Standing (if over 12 months old)

Why Form a Panama Company with SCG?

• In-depth expertise in Panamanian law and offshore planning
• Service for Latin American and international clients
• Optional nominee director services for privacy
• End-to-end compliance, banking, and structuring support

Interested in Panama for your offshore strategy?