How to Open a Business Account for Panama Companies
Starting your offshore business venture involves several crucial steps, and one of the initial ones is applying for a business bank account. This ensures that your business finances remain separate from personal accounts, providing better liability protection and credibility for your business.
When it comes to Panama companies, there are two main options for opening your business account
- Applying at a Local Bank in Panama or
- Opting for Offshore Bank Accounts or Fintech Solutions
1. Applying at a Local Bank in Panama
Location and Regulatory Environment:
Panama, positioned between Costa Rica and Colombia, boasts coastlines on both the Pacific and Atlantic Oceans. It has a renowned history as a reputable offshore financial center. The Superintendency of Banks of Panama oversees the country’s banking system, ensuring its soundness and efficiency. Panama uses the Balboa as its official currency, which is on par with the US dollar.
Panama has 2 state-owned commercial banks, 47 general license banks, and 26 offshore banks. Notably, there are no controls or restrictions on funds transferred to and from Panama.
Bank Privacy Laws:
Panama places a strong emphasis on bank privacy laws, prohibiting banks from sharing any account information unless authorized by Panamanian authorities. However, it’s worth noting that Panama has only signed a Tax Information Exchange Agreement with the USA, leading to international scrutiny on tax transparency matters.
Banking Sector Overview:
Panama’s banking laws classify its banking sector into three categories:
- General license banks, authorized for conducting all banking activities within and outside of Panama.
- International license banks, permitted solely for offshore banking activities.
- Bank representative offices.
2. Opting for Offshore Bank Accounts or Fintech Solutions
Flexibility for Panama Companies:
A significant advantage for Panama companies is that they aren’t obligated to open a business account within the jurisdiction. They have the freedom to open accounts in other offshore jurisdictions, providing flexibility and strategic advantages.
