Key Features

A Panama Financial Services Company is a special type of Panama Corporation (IBC) that has been approved for a special license by the Panamanian Ministry of Commerce. Known as an “Aviso” (Operational Status), it grants these companies with the ability to transact certain financial operations that do not require a more stringent regulated license.

More importantly, it provides some sort of documentary evidence of the ability, under Panama law, to conduct the services defined in the document:

  • These licensed Panama corporations are most commonly used by offshore financial services companies and international banks that handle third-party funds. For example, cash management and investment services for an offshore bank licensed in another jurisdiction or for providing electronic payments services, credit and debit cards, or other similar payment processing activities.
  • If you will manage client money, you must have a of license. The lowest cost and most efficient licensed but unregulated entity is the The Panama Financial Services Company.
  • These financial services companies can work effectively with other foreign structures – for example, to outsource services for tax efficiency (because Panama won’t tax foreign sourced profits) and/or to set up a trading desk in a more reputable jurisdiction than your country of licensure.

The standard description for e-Money activities in Panama’s Ministry Aviso is the processing of payment activities (charging and paying), online payment processing, direct payments online even on behalf of third parties and other related activities.

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Panama Company

  • Local physical office required

Yes

Share capital or equivalent

  • Minimum paid up capital

USD 50,000

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

Yes

Shareholders

  • Minimum number

2

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company Secretary

No

 Tax Treatment

Non-resident income is tax exempt.

Duration to Set Up

3 weeks

Distinctive Benefits of Licence

  • Robust yet flexible regulatory environment
  • Professional infrastructure and quality of workplace
  • Tax neutrality and Tax Exchange Agreements

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers