General Overview. Panama is known worldwide for being one of the largest shipping registries. In addition, it is also an important offshore financial centre, where many offshore companies are registered for different business and asset protection purposes. Offshore banking sector is well regulated in Panama and provides a wide range of services.

Banking Sector. Favourable business environment, rapidly growing international trade and investments in addition to the lack of exchange controls favored a rapid development of the banking sector in the last 20 years of the XX century. It is possible to obtain a General License, International or Restricted License and a Representation License n Panama. Each license category gives authorization to provide certain banking services. There are different minimum capital requirements, as well as government registration and annual fees for each of them.

Insurance Sector. A company which wishes to conduct insurance and reinsurance as well as a captive insurance business must obtain a government license for this purpose. Such a company must submit a number of requested documents and pay-up a minimum capital. Offshore insurance business is well regulated, and at the same time it is flexible for different needs of insurance companies.

Trusts and Foundations. Even though Panama is a Civil law country, it is possible to create an offshore trust there. In addition, offshore foundations are often chosen as an effective asset protection tool. Offshore foundations, which do not have members or shareholders, are often created by Civil law countries’ representatives, as the concept of a foundation is more understandable than a trust to the majority.

Sipping Registry. Being launched in 1925 the Panamanian shipping registry is the largest in the world in terms of the number of vessels registered there and the total tonnage. Panama has introduced no restrictions of a type of vessel which may be registered there, as well as any owner (no nationality and other types of restrictions) may register its ship in Panama. Having a long experience in vessels registration, Panama has implemented and offers precise and efficient registration procedures for convenient costs.