Panama IBC Corporations


15 Advantages of a Panama IBC (International Business Corporation)

The process of forming a Panama IBC is a relatively straightforward, simple and cost-effective course of action, and the results can be extremely beneficial for your operations.

The most common form of entity is known as an International Business Company (IBC), and the Corporation Law of Panama was drafted with special characteristics to streamline the registration, operation and management of these organizations for both nationals and foreigners. This has made Panama a thriving business hub that provides an ideal environment for a variety of investment vehicles.

The benefits of a Panama IBC, though, go beyond the ease of setup and management. The list below outlines many of the advantages of forming a Panama company.

No Currency Restrictions
The U.S. dollar is standard in Panama, but there are no currency restrictions.
Personal Presence is Not Required
Interested parties do not need to be present in Panama in order to form a corporation. This is achieved with the use of appointed incorporators in Panama who act on behalf of the interested parties by executing the Articles of Incorporation.
Reasonable reporting requirements.
Accounting records must be kept. Records associated with international corporation activities can be kept anywhere in the world; however, the Resident Agent must have copies of said records and be shared if required by a Panamanian authority. An annual government franchise tax is also required keep the corporation in good standing.
Tax Advantages

The territorial source principle is the basis of taxation in the Republic of Panama. This means that any income that is obtained from operations outside of the country of Panama is not taxable. The client must consult with a legal or tax specialist in his country of residence or nationality to comply with his local tax responsibilities.

No Need to Deposit or Pay Registered Capital

The registered capital for the corporation is simply a nominal figure that projects the estimated value of the entity and does not need to be paid or deposited.

No Nationality Restrictions

The directors and shareholders of the company can be members of any nationality and residents of any country.

Low Incorporation Costs

Incorporation costs in Panama are competitive when compared to other jurisdictions.

Accounting Flexibility
The accounting books of the corporation may be managed within Panama, abroad or even by electronic means.
Commercial License Not Required for Extraterritorial Activities

Corporations that engage in business outside of Panama are not required to obtain a commercial license or operation notice (this is called “Aviso de Operacion” in Panama).

Fast Incorporation Time Frame

The approximate time frame to establish a corporation in Panama is four to five business days.

The Shareholders’ Identities are Private

The identities of corporation shareholders are kept strictly confidential and are not registered at the Panama Public Registry. There is a beneficial owner registry of companies, however, it remains private and guarded by a superintendence in case they are required by a Panamanian authority.

Share Certificate Security

Share certificates are issued in private documents, and the officers and directors of the corporation are not required to be shareholders.

Low Maintenance Costs

Annual maintenance costs for a Panama IBC, such as resident agent fees and annual corporate taxes, are approximately USD 650.

Meetings Flexibility

Shareholder and director meetings can be held in the Republic of Panama or they can be held in any other country.


Panama offers a globally recognized financial infrastructure that values and safeguards financial privacy.

The elements of a Panama IBC company create an environment in which many companies can greatly benefit. Contact Mata & Pitti Attorneys at Law for a consultation on our services and discover how you can experience these advantages for yourself.


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