Inexpensive to form & maintain.

Only 9 TIEAs.

Panama IBC Jurisdiction facts guide

Panama, located between Costa Rica and Colombia is famous for its Canal which joins the Atlantic and Pacific Oceans. It is a constitutional democracy with a presidential style of government.

Panama’s legal system is based on Spanish Civil Law with many Common Law influences, particularly regarding Company Law, which is based on the Delaware Model.

Zero taxation.

Strong privacy.

Taxes & Accounts

The Panama corporation (sometimes referred to as a Panama IBC) is a tax exempt entity, provided that the company income or profits are earned outside of Panama. There is no requirement to file accounts.



The identity of the directors is a matter of public record, but nominees are generally used.

Caution. In common with all jurisdictions offering IBCs, Panama has entered into a number (currently 9) of ‘Tax Exchange Information Agreements’ (known as TIEAs). Clients should avoid establishing companies or bank accounts in jurisdictions where a TIEA has been signed with their home country. For further information, please visit the OECD website and sort by both jurisdiction and ‘type of EOI arrangement’, you are looking for TIEA (not DTA which are Double Tax Agreements), or please contact us for advice.

Directors and Shareholder requirements

A minimum of three directors is required. The directors may be corporations or individuals and can be of any nationality or residency. Panama companies are also required to appoint a minimum of three officers (president, secretary and treasurer) who may also be the directors. The minimum number of shareholders is one.  Non-voting shares, common shares, preferred shares, bearer shares and registered shares are allowed.

Formation Time

Company formation can be undertaken within 4 to 6 days.  Documents are normally delivered to our offices in 10 to 12 days. Panama allows almost any corporate indicator to be used and in any language including: Limited, Corporation, Incorporated, Societe Anonyme and Sociedad Anonima.

Bank account

A Panama company may open a bank account worldwide. We are agents for a number of banks. We are able to introduce Panama companies to banks in several countries; all with Internet banking and debit cards in any major currency.

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Nominee Services

We offer nominee director(s) and shareholder services for Panama companies. This allows, for example, a local director to sign sale or purchase contracts without your name appearing on the record.

Contact us to form a Panama company

Excellent for online business including software / apps developments / web design etc. Often used as holding companies both for investments and for Intellectual Property (IP).

Our rating: still privacy orientated, but best not used for direct trading (B2B) in to high tax areas (OECD member states)

Panama at a glance

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Copyright © 2013 - 2020. is a trading name of Tai Pan Management Services Ltd.
Company Service Provider Licence No. TC004077 Registered in Hong Kong. No 1942748
All rights reserved.

Please note that Tai Pan provides an execution only service in respect of the formation of companies, opening bank accounts and related services.
Therefore comments or suggestions made by us should not be considered as formal advice.
Should you require formal structuring advice, please visit our sister company TaiPan.