Panama IBC what you need to know about the jurisdiction and requirements

Nikita Veremeev

05.11.2025 | 6 min read

Updated: 05.11.2025

Panama IBC (International Business Company): is a versatile corporate form that allows conducting international activities with minimal tax obligations and a high degree of confidentiality. An offshore company in Panama is traditionally used for global asset management, international trade, digital commerce and investment funds.

Benefits of Panama IBC for entrepreneurs from Europe, Asia and the CIS:

Panama’s territorial tax system: income earned outside of Panama is not taxed, which opens up broad opportunities for tax planning and optimizing a holding structure.
Flexibility of corporate governance: corporate structure of an IBC allows the use of nominee directors and shareholders, enabling the preservation of confidentiality and simplifying management.
Confidentiality and asset protection: Panamanian legislation provides a high level of protection for owners’ data, and bearer shares (registered shares) can be used for additional anonymity.
International reputation and access to global markets: the Panama Canal plays a key role in international trade, and the jurisdiction itself is recognized by global financial institutions and banks.

The practice of COREDO confirms that Panama IBC is in demand for structuring cross-border transactions, managing intellectual property, digital business models and e-commerce. For example, for one client from the Czech Republic we developed a scheme to integrate a Panama IBC into the international supply chain via the Panama Canal, which made it possible to reduce operating costs and speed up logistics.

Requirements for Panama IBC registration in 2025

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registration requirements Panama IBC in 2025 include a number of formal and legal procedures that must be followed to lawfully operate and retain all the benefits of the offshore jurisdiction. Before proceeding with company registration in Panama, it is important to understand the key steps, required documents and specifics of the business formation process.

Company registration in Panama: documents and process

Registering a company in Panama requires the preparation of a full package of incorporation documents:

Articles of Incorporation (company charter), where the objectives, rights and obligations of the participants are set out.
Minutes of the first meeting of directors and shareholders.
Confirmation of a unique company name (search in the public register).
Details of the registered address and the secretariat.

COREDO’s solution for clients from the United Kingdom and Estonia includes automation of document preparation and remote application submission through a licensed registered agent. The role of such an agent is critical: they are responsible for the correctness of documents, maintaining registers and liaising with the regulator.

Panama IBC registration timeline – usually up to 2 weeks, provided full compliance with the requirements and prompt submission of information. All documents must be notarized and translated into Spanish.

Requirements for directors and shareholders of Panama IBC

Minimum number of directors: one, shareholders: one. The use of nominee directors and shareholders is permitted, which allows beneficiaries to remain anonymous. Nevertheless, since 2020, under the influence of international standards and Law 129, Panama IBC is required to maintain a register of beneficial owners and disclose them upon request by regulators.

KYC and AML procedures have become an integral part of registration: verification of identity, source of funds and address of all participants is required. The COREDO team implemented a comprehensive KYC screening for clients from Singapore and Dubai, integrated with banking and legal services.

Impact of Law 23 (2015) and Law 129 (2020) on company compliance

Law 23 of 2015 tightened AML (Anti-Money Laundering) policy requirements, obliging companies to implement customer identification procedures and transaction monitoring. Law 129 of 2020 introduced a mandatory register of beneficial owners, which increased the transparency of corporate structures.

COREDO’s practice has shown that non-compliance with the new requirements leads to account freezes, fines and even license revocation. For one client from the CIS we developed a comprehensive compliance program including maintaining the register, regular reports and internal audit.

Panama IBC Tax Regime: Tax Planning

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The Panama IBC tax regime opens up broad opportunities for international business and effective tax planning. Thanks to the features of the territorial tax system, income earned outside Panama is fully exempt from local taxes, making the Panama IBC one of the most attractive tools for optimizing corporate structures and reducing tax burden.

Panama’s Territorial Tax System

The main advantage of a Panama IBC is exemption from tax on income from foreign sources. This means that profit earned outside Panama is not subject to corporate tax. However, the company is obliged to pay an annual franchise tax and government fees.

For COREDO clients from the Czech Republic and Slovakia, we have structured holding schemes that legally allow the use of Panama IBC for international investments and trading operations, minimizing the tax burden.

Such a structure makes Panama IBC an effective instrument of international tax planning; below we will consider CRS and tax transparency issues for such companies.

CRS and Tax Transparency for Panama IBC

Since 2018 Panama has joined the Common Reporting Standard (CRS), which obliges companies to disclose information about beneficiaries and financial transactions at the request of foreign tax authorities. This has increased transparency and reporting requirements.

The COREDO team has integrated CRS reporting procedures into the corporate processes of clients from the EU, ensuring compliance with international standards of financial transparency and minimizing the risks of automatic information exchange.

Thus, increased transparency requirements and the integration of CRS procedures have become an integral part of effective work with Panamanian corporate structures.

Tax Optimization with Panama IBC: Strategies and Methods

Panama IBC remains an effective tool for international tax planning, especially for structuring cross-border transactions, managing funds, and intellectual property. At the same time, it is important to consider risks: tightened control, restrictions on activities in certain areas, and reporting requirements.

COREDO’s experience shows that tax optimization is possible only with strict compliance, proper preparation of statutory documents, and transparency of the corporate structure.

Corporate governance and compliance in Panama IBC

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Corporate governance and compliance in Panama IBC provide transparency, stability and legal protection for business at the international level. Proper organization of Panama IBC management includes a clear division of roles, compliance with corporate standards and legal requirements, as well as measures to maintain corporate identity and ensure compliance.

Management organization of Panama IBC

The corporate structure of a Panama IBC includes directors, shareholders and the secretariat. Maintaining registers of shareholders and directors is a mandatory requirement, and the legal liability of directors is enshrined in law.

For COREDO clients from Singapore and Dubai we implemented digital registers, which simplified corporate risk management and ensured compliance with international standards.

AML and KYC requirements for Panama IBC

AML (Anti-Money Laundering) policy and KYC (Know Your Customer) procedures are key elements of compliance for Panama IBC. Each company is required to identify clients, monitor transactions and maintain internal reports.

The role of the registered agent is not only document preparation but also supporting compliance, regular audits and interaction with regulators. COREDO’s solution for clients from the EU includes automated KYC procedures and integration with banking platforms.

Panama IBC reporting in 2025

Since 2025, new requirements for financial reporting have been introduced: Panama IBCs are required to maintain accounting records, file annual reports, and undergo audits at regulators’ request. Simplifications apply to low-turnover companies, but reporting for international structures is becoming increasingly detailed.

The COREDO team implemented a remote accounting and reporting preparation system for clients from Asia and the CIS, which allowed them to reduce operating costs and increase transparency.

Practical tips for entrepreneurs

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Practical tips for entrepreneurs are especially relevant if you want to effectively use international tools to grow your business and reduce tax burden. Below are step-by-step recommendations that will help organize the registration of a Panama IBC company and avoid common mistakes at the start.

Panama IBC registration

Define the goals and business model of the Panama IBC (trade, investments, e-commerce).
Prepare the package of incorporation documents: Articles of Incorporation, minutes, beneficiary information.
Check the company name in the public register.
Choose a registered agent with a license and experience.
Conduct KYC/AML checks on all participants.
Submit documents and pay government fees.
Obtain the certificate of registration and open a bank account.
Implement registry, accounting and compliance procedures.

How to choose a registered agent and partner

COREDO’s experience has shown that the key criteria are licensing, experience working with international clients, the presence of compliance expertise and transparency of processes. For clients from the United Kingdom we developed an agent checklist that includes analysis of reputation, reviews and legal guarantees.

It is also important to take into account the requirements for financial monitoring and reporting, which we will consider in the next section.

Advice on AML, KYC and tax reporting

Implement automated KYC procedures.
Regularly update the register of beneficiaries.
Maintain internal audit and reporting.
Use digital platforms to manage corporate risks.

How to protect the privacy of assets and owners?

Panama IBC allows the use of nominee directors and shareholders, maintaining a closed register and applying bearer shares. Still, under CRS and AML, it is important to maintain a balance between confidentiality and transparency.

The COREDO team implemented a case for a client from Slovakia, where a Panama IBC structure made it possible to protect intellectual property and commercial assets while maintaining compliance with international requirements.

Scaling business through a Panama IBC in Europe, Asia, and the CIS

Panama IBC integrates with global markets, supports digital commerce and blockchain projects, allows structuring cross-border investments and managing funds. For companies from the CIS and Asia, Panama IBC opens opportunities to enter EU and Middle Eastern markets.

Risks and limitations of Panama IBC

Tightening of international transparency standards (CRS, AML).
Restrictions on activities in certain areas (finance, crypto).
Requirements for reporting and auditing.
Possible consequences of the Panama Papers and legislative reforms.

COREDO’s practice confirms: effective risk management requires regular auditing, updating corporate documents and interaction with professional legal advisors.

Frequently Asked Questions about Panama IBC

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What documents are required to open a Panama IBC?

Articles of Incorporation, minutes, beneficial owner information, proof of address, KYC forms.

What licenses are required for business activities?

For financial, crypto, and payment services: separate licenses that the COREDO team helps obtain.

How does Panama IBC help with international investing?

Fund structuring, asset management, tax optimization.

What are the specifics for e-commerce companies?

Flexible corporate structure, ability to integrate with digital platforms, data protection and confidentiality.

How to choose a registered agent for Panama IBC?

Assess the license, experience, compliance expertise, and transparency of processes.

What are the requirements for maintaining the register of shareholders and directors?

Mandatory maintenance of the register, regular updates, compliance with Law 129 of 2020.

What are the consequences of the Panama Papers for Panama IBC owners?

Tightening of transparency requirements, introduction of a beneficial owners register, increased compliance standards.

In conclusion, I want to emphasize: Panama IBC is not just an offshore structuring tool, but a full-fledged platform for international business, investments, and asset protection. The expertise and experience of the COREDO team make it possible to implement projects of any complexity, ensuring compliance, transparency, and long-term resilience of corporate structures in the context of global changes in 2025.