Due its many advantages and features Panama is one of the most frequently chosen locations for the establishment of corporations, also known as offshore corporations or IBCs (international business corporations).  Panamanian corporations are recognized by the global financial community as a valuable tool due to their structure which has proven to be ideal for carrying out business operations of many kinds. 

Panamanian corporations are the perfect instrument to protect your assets, obtain private financing, and participate in any kind of legal business transaction in Panama, or any other area in which you many wish to do business.  This includes transactions with consulting firms, shipping firms, manufacturers, air transport, proprietary licences or sub-licenses companies, small businesses, family businesses, among many others.  Below we describe some of the most common kinds of corporations in Panama.

Boat and Ship Ownership
As one of its principle advantages Panama has one of the largest merchant marine fleets in the world.  With ownership of a vessel in the name of a Panamanian corporation all income and dividends generated by the vessel outside of Panamanian territory is completely exempt from taxation in Panama.

Real Estate
A Panamanian corporation may own property in any part of the world.  Maintaining part of your assets “offshore” not only provides financial security, but also protects your wealth from potential lawsuits or bankruptcy.

Leasing
A Panamanian corporation is able to lease real estate or movable property such as vehicles, equipments, or ships in any part of the world.

Merchant Firms
One of the greatest advantages gained through use of a Panamanian corporation is in the tax system.  According to Panamanian tax territoriality only the income and earnings generated in the the fiscal territory of Panama are subject to taxes.  Any earnings gained from activities outside of Panama such as the transfer or acquisition of goods, bank accounts, investments, transfer or acquisition of real estate, and dividends from companies located outside of the country are exonerated from taxes in Panama.