(PANAMA COMPANY FORMATION)
Panama Company
A Panama Corporation is created under Law 32 of 1927. Panama pairs a century-old corporate statute with genuine territorial taxation, which makes it a durable holding and trading domicile rather than a creditor-defence vehicle. We coordinate direct, licensed Panama registered office relationships, formation inside 3 to 5 days, and optional banking or Cook Islands or Nevis Trust pairing, with pricing available on application.
Specialist jurisdiction
Offshore Companies · Panama Company
Central America
Panama
Latitude
00.0000° N
Longitude
000.0000° W
(PANAMA COMPANY OVERVIEW)
A Panama company structure for territorial taxation and international trading
A Panama corporation is created under Law 32 of 1927, a statute that has been in continuous force for nearly a century and is one of the most widely recognised corporate frameworks in Latin America.Panama runs a genuine territorial tax system: only Panama-source income is taxed, at 25%, and foreign-source income falls outside the tax net entirely. Incorporation is filed electronically at the Public Registry and does not require a visit to Panama.Directors and officers appear on the public register, though shareholders do not. For adversarial creditor protection Panama is not where we point clients. Where creditor protection is the main objective, compare the Cook Islands Company and Nevis Company.
Governing law
Law 32 of 1927, as amended
Entity type
Sociedad Anónima (corporation); an LLC form is also available
Minimum directors/shareholders
Three directors and one shareholder; directors may be corporate
Public register
Directors and officers are on the public register; shareholders are not
Formation time
3–5 days from KYC clearance
Primary use
Trading, holding and international contracting
General summary only. Panama is a long-established corporate domicile with territorial taxation; it is not a purpose-built creditor-protection jurisdiction. What suits you turns on the client, the assets and the objectives.
(WHAT IS INCLUDED)
A complete formation service for Panama companies
Take a standalone Corporation (Sociedad Anónima), a Company with banking, or the complete Total Protection Package
Flat, all-in fees covering every government registration charge and the first-year registered office cost — nothing hidden, no invoices you didn’t expect.
Panama Corporation
On application
3–5 days
A standalone Panama Corporation. Panama pairs a century-old corporate statute with genuine territorial taxation, which makes it a durable holding and trading domicile rather than a creditor-defence vehicle.
Certificate of Incorporation and constitutional documents
All Panama government registration fees
First-year Panama registered office and agent
Apostilled corporate documents
Company + Banking
On application
3–5 days + 4–10 weeks banking
A Panama Corporation bundled with an account at one of our partner institutions — offshore banks, private banks, Swiss banks, and institutional custodians.
Panama Corporation — registered and operational in full
An offshore bank account at whichever partner institution you prefer
All company documents
All government fees plus first-year agent costs
Trust + Company + Banking
$12,000
first-year fees all included · formation timeline coordinated throughout
The full structure. A Cook Islands or Nevis Trust, a Cook Islands or Nevis Company (LLC or IBC), and a bank account — the strongest asset protection combination on offer, built on our two core jurisdictions.
Cook Islands or Nevis Trust — registered and operational in full
Cook Islands or Nevis Company (LLC or IBC) — registered and operational in full
Every trust and company formation document
All government fees plus first-year trustee and agent costs
An offshore bank account at whichever partner institution you prefer
Each package covers drafted formation documents, apostilled copies, and hands-on coordination with licensed Panama registered offices and agents.
(PANAMA COMPANY GUIDE)
Understanding the Panama Corporation structure
How does a Panama Corporation work?
A Panama Corporation is owned by its shareholders, who appoint directors to run its affairs.
The company is created under Law 32 of 1927 and registered through a licensed Panama registered office or agent. It can hold bank accounts and investments directly, own shares in subsidiaries, and carry on international business.
A Panama corporation is created under Law 32 of 1927, a statute that has been in continuous force for nearly a century and is one of the most widely recognised corporate frameworks in Latin America.
- Shareholders: own the company and hold its economic and voting rights.
- Directors: run the company's affairs and banking relationships.
- Registered office: keeps the company's registration and statutory records in Panama.
- Constitutional documents: set out the share structure, governance and shareholder rights.
We coordinate the entity formation, the registered office, the due diligence and the banking.
Discuss your structureWho controls a Panama company?
A Panama company can usually be arranged so that you keep direct control over its banking and investment decisions.
Most Panama companies used for holding or investment have the beneficial owner closely involved in governance, so everyday banking, investment and operating calls stay with you.
Where a trust is placed above the company, day-to-day control does not change — what changes is who legally holds the shares a creditor would need to reach.
- Director authority: covers routine banking, investment and operational decisions.
- Shareholder rights: cover dividends, voting, and amendments to the governing documents.
- Trustee ownership: where a trust holds the shares, adds a jurisdictional barrier without altering daily management.
- Governance: Law 32 of 1927 allows board and committee structures where something more formal is wanted.
What can be held in a Panama company?
A company becomes operational once accepted assets are properly transferred and recorded as its property.
Common uses include cash and bank deposits, investment portfolios, intellectual property, and shares in operating subsidiaries. We coordinate the bank or custodian introduction, with every institution reviewing the proposed assets, source of funds and supporting documentation.
Panama runs a genuine territorial tax system: only Panama-source income is taxed, at 25%, and foreign-source income falls outside the tax net entirely. Incorporation is filed electronically at the Public Registry and does not require a visit to Panama.
- Cash and deposits: held through approved offshore or institutional banking arrangements.
- Investment portfolios: held through approved custodian or brokerage arrangements.
- Subsidiary shares: brought together under a single holding layer.
- Holding and trading companies earning entirely foreign-source income: the jurisdiction’s most common application.
Why pair a Panama company with a Cook Islands or Nevis Trust?
Panama gives you the strengths set out on this page; a Cook Islands or Nevis Trust adds the dedicated creditor-protection statute it lacks.
A Panama company on its own has no dedicated charging-order or creditor-bond statute of the sort the Cook Islands and Nevis provide. Putting a Cook Islands Trust above the Panama company shifts the shares a creditor would need to reach to an independent, licensed trustee working wholly outside US jurisdiction.
Daily control does not change: you carry on running the Panama company's banking and investment activity exactly as before. What changes is what happens under real legal pressure, when the trust deed's anti-duress provisions tell the trustee to refuse any instruction given under compulsion.
- Practical control preserved: day-to-day management carries on exactly as it did before formation.
- Shares relocated: held by an independent trustee rather than by you personally.
- Dedicated statute added: the trust supplies the purpose-built creditor protection Panama itself lacks.
- Jurisdictional strengths retained: the Panama entity still does the job you formed it for.
We coordinate Panama companies with Cook Islands and Nevis Trusts as a single engagement.
See the Cook Islands TrustWhat are the limits of Panama company protection?
A Panama company is a structuring vehicle, not a purpose-built creditor-protection statute.
Transfers made after a claim has already arisen, while the transferor is insolvent, or for an improper purpose can be challenged — there is no criminal burden of proof or short statutory limitation period of the kind the Cook Islands and Nevis provide.
Panama does not impose the OECD-style economic substance regime found in the British Overseas Territories, but banks apply full beneficial-ownership and source-of-funds review, and a resident agent is mandatory.
- No dedicated creditor statute: protection rests on general common law, not on purpose-built legislation.
- No secrecy from authorities: home-country tax and reporting duties carry on in full whatever the structure.
- No guaranteed outcome: the facts, the timing and the applicable law stay decisive in any dispute.
- Strongest when paired: a Cook Islands or Nevis Trust adds the statutory protection Panama alone lacks.
When should a Panama company be set up?
The strongest planning is done while finances are stable and before any specific dispute or claim exists.
Formation usually finishes within 3 to 5 days once KYC is cleared. Panama taxes only Panama-source income, at 25%. Foreign-source income is outside the tax net.
Opening an offshore bank account generally takes a further four to ten weeks, particularly where the structure calls for additional due diligence.
- Plan before pressure: do not wait until a transfer becomes urgent or contested.
- Prepare documentation early: certified passport, proof of address and source-of-funds evidence should be current.
- Confirm the tax position: territorial — foreign income untaxed — check how that fits with your own residence.
- Consider a trust pairing: if creditor protection, not just the company itself, is a priority.
What tax and reporting obligations apply?
Offshore does not mean unreported. What is owed depends on the shareholders, the assets and the countries involved.
The Panama registered office or agent and any bank run KYC and beneficial-ownership checks as standard. Panama does not impose the OECD-style economic substance regime found in the British Overseas Territories, but banks apply full beneficial-ownership and source-of-funds review, and a resident agent is mandatory.
US persons typically file Form 5471 each year for the company, along with an FBAR for offshore accounts. These obligations are non-negotiable, and every structure we form is built for full home-country compliance from day one.
- Form 5471: yearly US reporting for foreign corporations.
- FBAR: applies to offshore bank and financial accounts held by the company.
- Substance and residence: where the company is managed and controlled can decide its tax outcome.
- Professional advice: should be obtained before formation and before any assets are funded.
Who might consider a Panama company?
Panama pairs a century-old corporate statute with genuine territorial taxation, which makes it a durable holding and trading domicile rather than a creditor-defence vehicle.
Why Panama? Territorial taxation and durability. Foreign-source income is not taxed in Panama, the statute has survived a century of political change, and the jurisdiction has the banking, shipping and legal infrastructure that comes with being a regional financial centre. Panama corporations are frequently paired with a Panama Private Interest Foundation for succession planning.
It is a poorer fit as a standalone structure where dedicated creditor protection is the main objective — pairing with a Cook Islands or Nevis Trust closes that gap directly.
- Best fit: holding and trading companies earning entirely foreign-source income.
- Also suited to: businesses wanting a statute with a century of continuous operation behind it.
- And: structures pairing a corporation with a Panama Private Interest Foundation.
- Clients wanting Total Protection: via a Panama company paired with a Cook Islands or Nevis Trust.
Before we recommend a structure, we set Panama honestly against the Cook Islands and Nevis.
Book a consultation(WHY CLIENTS CHOOSE OFFSHORE COMPANIES ONLINE)
Panama company formation with a cross-jurisdiction perspective
We coordinate Panama companies and Cook Islands or Nevis Trusts as one engagement. This is not a referral service — we run the whole formation ourselves and pass on the keenest pricing available.
Direct Panama registered office relationships
Ours are direct, licensed Panama registered office and agent relationships — no referral middleman — the same team that builds Cook Islands and Nevis structures in 20+ jurisdictions.
First-hand jurisdictional knowledge
Our specialists know the practical realities of Panama structuring, not generic offshore formation scripts.
Fixed-fee formation
All government fees plus first-year agent costs are built into the price — nothing hidden, no invoices you didn't expect.
Honest jurisdiction guidance
We set Panama honestly against the Cook Islands and Nevis, so a jurisdiction's strengths are not mistaken for adversarial creditor defence.
Full compliance from day one
Optional legal and tax advisory keeps you in full home-country compliance — every structure is built to be reported correctly, not concealed.
(WHO SHOULD FORM A PANAMA COMPANY?)
A natural fit for territorial taxation and international trading
Panama pairs a century-old corporate statute with genuine territorial taxation, which makes it a durable holding and trading domicile rather than a creditor-defence vehicle. For dedicated creditor protection, pair it with a Cook Islands or Nevis Trust.
Territorial taxation and international trading
Panama pairs a century-old corporate statute with genuine territorial taxation, which makes it a durable holding and trading domicile rather than a creditor-defence vehicle.
Holding and trading companies earning entirely foreign-source income
Businesses wanting a statute with a century of continuous operation behind it
Structures pairing a corporation with a Panama Private Interest Foundation
Owners who value Panama's regional banking and shipping infrastructure
When Panama alone isn't the strongest choice
Panama has real strengths, but it is not built around dedicated creditor-protection statutes.
No dedicated charging-order or creditor-bond statute like the Cook Islands or Nevis
Directors and officers appear on the public register
Panama-source income is taxable at 25%; only foreign income is outside the net
Best paired with a trust where creditor protection is the real priority
For creditor protection specifically, compare the Cook Islands Company and Nevis Company, or the Cook Islands Trust where the exposure is serious. For territorial taxation and international trading, Panama is frequently the stronger fit.
(TOTAL PROTECTION PACKAGE)
The Panama Total Protection Package
A company on paper achieves nothing — the structure only works once it is funded and running. We handle the bank introduction, matching your entity profile to institutions actively onboarding Panama entities. Opening an account usually takes four to ten weeks.
- Panama registered agent and incorporation handled from start to finish
- Government, registration and third-party charges set out line by line in the written quote
- Panama-compliant constitutional documents and share structure drawn up where needed
- Company registered and ready for banking and asset transfer
(PANAMA COMPANY EXPERTISE)
Meet our company formation specialists
John Evans
Forbes Business Council Founder & Chief Executive Officer
Rarotonga, Cook Islands
More than two decades of experience across offshore banking, asset protection, international companies and trusts.
Melanie Tetuaiteroi
Sales Assistant
Rarotonga, Cook Islands
Supports client onboarding, communications, documentation and operational coordination, backed by fiduciary administration experience.
(FORMATION PROCESS)
01
Initial consultation
We talk through your objectives, whether a Panama company or a Cook Islands or Nevis structure best suits you, and where you stand for tax at home.
02
Confirm structure and complete KYC
We settle the structure, check that the name is available, and give you a tailored KYC checklist — certified passport, proof of address and source of funds.
03
Draft, sign, and register
We draw up your constitutional documents, file with the Public Registry, and settle all government fees. Formation is done inside 3 to 5 days.
04
Receive documents and open banking
You receive the full corporate document pack, ready to open a bank account. We carry the bank introduction through to a live, funded offshore account.
(PANAMA COMPANY INSIGHTS)
Panama Company Insights
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(ABOUT PANAMA COMPANYS)
What is a Panama company?
A Panama corporation, or Sociedad Anónima, is created under Law 32 of 1927. It needs three directors and at least one shareholder, with no nationality or residency restriction on either, and can be incorporated through same-day electronic filing at the Public Registry.
Why Panama? Territorial taxation and durability. Foreign-source income is not taxed in Panama, the statute has survived a century of political change, and the jurisdiction has the banking, shipping and legal infrastructure that comes with being a regional financial centre. Panama corporations are frequently paired with a Panama Private Interest Foundation for succession planning.
Panama does place directors and officers on the public register, and it is not built around the charging-order and creditor-bond statutes that make Cook Islands and Nevis companies effective against live claims. It does not carry the charging-order and creditor-bond statutes that make Cook Islands and Nevis companies so effective against live claims, so pairing a Panama company with a Cook Islands Trust above it is how the two are usually combined.
(PANAMA COMPANY QUESTIONS)
Common questions about Panama companies
(CONTACT US)
Speak to a specialist. Let’s build your structure.
Book a confidential, no-obligation consultation with a senior member of our team to discuss your objectives and the services we have available.
