Panama offers the most favorable and most flexible incorporation laws available in the world. Individuals from all over the globe who are interested in asset protection, tax minimization, privacy, investment diversification, affordability and convenience use Panama corporations.
Panama corporations can be used for international trade, to settle trust or foundations, to establish and own bank or brokerage accounts, or hold ownership of real estate or any other type of asset. In some cases, Panama corporations are formed for very private and confidential business transactions such as the movement of funds to another jurisdiction for the protection of the assets.
Panama offers the strictest corporate book and banking secrecy laws available in the world, therefore providing legal protection to your assets and your identity through the confidentiality of corporate business and banking transactions. Most other offshore jurisdictions, such as the British influenced countries, have vowed down to recent legislation that has begun the removal of bank secrecy in those British colonies around the globe. Panama is a totally sovereign nation, not governed or controlled by any other country in the world.
B. Panama Corporation Facts:
Second Most Popular Jurisdiction in the World: Panama is the registered domicile for over 400,000 corporations and foundations, making it the second most popular jurisdiction to incorporate in the world, next to Hong Kong.
No Reporting Requirements or Taxes: Panama does not impose any reporting requirement or taxes for non-resident Panamanian corporations.
No Piercing the Corporate Veil: Panama does not allow, “piercing the corporate veil”, so your corporate books are maintained 100% private and confidential by law.
Anonymous Ownership: Panama corporations share certificates can be issued in Nominative or Bearer form (Bearer Share are an anonymous form of ownership), with or without par value. Neither the directors nor the officers of Panama corporations need to be shareholders.
No Capital Requirements: Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital must be fully paid.
Directors: Every Panama corporation requires 3 directors/officers (President, Secretary and Treasurer). The directors/officers can be either individuals or entities. Panama Corporation’s directors, officers and shareholders may be of any nationality and resident of any country. The director’s names and identifications must be presented in the public registry when the corporation is formed.
Nominee Directors: We offer our clients the optional service of using our “Nominee Directors” for their corporation(s). For purposes of confidentiality, most of the clients prefer that I provide nominee directors/officers for their corporations. When I appoint nominee directors for the entities that I establish for my clients, I always provide my clients with pre-signed, undated letters of resignation from the directors so that my client can replace those directors at any time.
Directors or Shareholders Meeting: Annual general meeting of either shareholders or directors of the corporation are not mandated or required. However, if meeting are held, they can take place anywhere in the world by proxy – via telephone, email or other electronic means. Any resolutions passed are valid regardless of whether they are signed on different dates or in different jurisdictions.
Corporate Books: The Registered Agent is not required to keep any records for the corporation, however, every corporation should maintain a minute book and stock register, which can be held anywhere in the world.
Subscribers: Panama corporations must have two subscribers present at the public registry in order to be incorporated. The subscribers are the individuals from our law firm that appear at the Public Registry with the articles of incorporation to incorporate the corporation. By law, the subscribers have a right to own one (1) share of the corporation. As soon as the corporation is established, the subscribers sign a document where by they resign their rights to one (1) share of the corporation. This document is provided to our client along with the corporate documentation.
Annual Corporate Franchise Tax: Panama corporations and foundations should pay a low annual corporate franchise tax of USD$250.00 to remain in good standing. The deadline for the tax payment depends on when the entity was formed. If the entity was formed 1 January to 30 June, then the tax is due on the 30 th of June. If the entity was formed from 1 July to 31 December, then the tax is due on the 31 st of December. If the tax is not paid on or before the due date, the entity be charged a late penalty of USD$50.00. If the tax is not paid after the following “deadline” period, the entity will be charged a second late penalty of USD$250.00.
Convenience: It is not necessary for the interested parties to be present in Panama for the purpose of establishing a corporation. We can handle everything for you without you having to come to Panama.
No Business License Requirement: Non-resident Panama Corporations do not require a commercial business license to operate business internationally.
Re-Domiciliation: Corporations from other jurisdictions may be re-domiciled to Panama , and vice-versa. Many people, who have corporations in jurisdictions such as the Bahamas and other British territories, are currently re-domiciling their corporations to more private and secure jurisdictions such as Panama.
Corporate Seal: A corporate seal is optional. I also offer corporate seals if you want one.
Legal Address: When registering a new Panama corporation, it must have a legal physical address that is included in the articles of incorporation. I provide a legal physical address as Registered Agent.
Uses of Panama Corporations.
Holder of banks accounts, trust, fixed deposits, investment plans and any other financial or commercial title.
To act as intermediaries in transactions involving local companies.
To act as owner of apartments, houses, buildings, and any other movable or immovable property or goods.
To act as holder or owner of the shares of other companies, corporations or legal entities, or as owners of any kind of legal entities.
To open current and time deposit accounts.
As a vehicle for investing in time deposits, shares, bonds, mutual funds, or other type or financial or commercial titles.
To create international Trust, acting as Settlor, Beneficiary or even as Trustee.
As a vehicle for the collection of royalties and other income.