Panama IBC

A private, multi-purpose vehicle ideal for non-resident foreign citizens.

Own an entity in Panama Sociedad Anónima! Instantly incorporate with model or tailored articles, select your preferred registered address, and appoint your local agent to activate your company. If you are looking for different residency options, then Panama is a great option. Its close proximity to the United States along with its favourable tax climate makes it a popular jurisdiction to reside. There are a number of options how to apply for residency: Investor, Foreign Professional or Retiree. Otonomos works with local partners to ensure your migration is well organized for a smooth transition.

PACK THE MINIMUM TO SURVIVE

Starter Kit

The essentials to start your journey

$ 3,575

Due Diligence

Annually

Incorporation

One-time

Franchise Tax

Annually

Corporate Secretary

Annually

Registered Agent and Local Address

Annually

CHOOSE A PRE-ASSEMBLED RIG

HANDPICKS EXTRA GEAR

Entity Management

Crypto Exchange/OTC Account

Fiat Bank Account

Paid Guides

Frequently Asked Questions

A Panama IBC is a civil law entity used for international business, asset holding, and crypto activities. It is popular with teams and companies who prefer a Panama-based civil law jurisdiction for tax neutrality and privacy.

Panama IBCs are commonly used for:

Holding company: Holding crypto assets, real estate, stakes in other companies, or IP
Proprietary trading: Trading your own crypto or other assets (not suitable as an investment fund)
Token issuance: Issuing tokens without requiring a VASP license in Panama
Asset management and international investments

Panama imposes no taxes on foreign-source income. Income generated outside Panama is tax-exempt, while business conducted within Panama may be subject to local taxation.

Directors are publicly filed
Beneficiaries and shareholders remain private
Nominee directors can enhance privacy

Setting up a Panama IBC requires KYC (Know Your Customer) and AML (Anti-Money Laundering) verification for all participants. Required documents include:

For Individuals (KYC):

Certified copy of primary and secondary photo ID
Proof of address
Resume or CV
Professional reference
Source of wealth declaration

For Corporate Participants (KYB):

Certificate of formation
Register of directors and members
Share certificates
Memorandum & Articles of Association (M&A)
Consent to act as Director

After ordering, participants receive a link to the Otonomos Dashboard to complete the entity application form, including company name options, purpose, source of funds, financial year-end, participants, share capital, and org chart.

At least 1 Shareholder
3 Directors (required at all times)
Treasurer, President, Secretary (roles combined with directors)
Ultimate Beneficial Owner (UBO)

Nominee directors are recommended for enhanced privacy and compliance. Otonomos can provide nominee directors if needed.

All participants complete online KYC verification via SumSub. This includes submitting identification documents and other required information. The process is streamlined to reduce delays during entity formation.

Renewal periods:

Entities registered Jan–Jun renew by July 15
Entities registered Jul–Dec renew by January 15

Annual financial statements are required but do not need to be audited. Timely renewals ensure the IBC stays in good standing.

Civil law jurisdiction, suitable for teams preferring this legal framework
Tax exemption on foreign income
Supports holding, trading, and token issuance
Beneficiary privacy is maintained
Nominee director support available