Panama: Offshore Business Sectors
Insurance companies in Panama are supervised by the Superintendent of Insurance and Reinsurance at Panama's Ministry of Commerce and Industry. Licences to operate a captive are issued by the Superintendent, but only a handful of companies have taken them up.
A license application requires the following documents:
- A notarised Spanish translation of the Articles of Association;
- A Board minute authorising the Panamian registration;
- Copies of the most recent financial statements;
- A certificate from a Panamian Consul confirming that the company is organised according to the laws of its place of incorporation;
- Notification of the allocation of capital to the Panamian operation;
- Banking and personal references for shareholders and directors;
- A technical report on the business proposed to be undertaken;
- Registration fee of US$1,000
Ongoing annual license fees of US$2,000 per annum are payable, as well as the regular US$150 incorporation fee. General insurers need paid up capital of US$150,000; long-term insurers need minimum paid-up capital of of US$250,000.
Profits made from external insurance activity will not be subject to taxation; see Offshore Legal and Tax Regimes for further information.