Corporations in Panama
If you are interested in registering an offshore corporation or a local business in Panama, please write to firstname.lastname@example.org. You can include the type of business you wish to open and we will send the form of registration.
Corporations are registered in 3 to 5 days. According to the local business you want to establish, you may require additional permits and documentation.
The Republic of Panama was one of the first countries in the world that enacted modern legislation pertaining the creation of offshore companies for tax planning purposes and to conduct legitimate business activities in the international arena. Corporations in Panama are governed by Law 32, and offers a flexible corporate structure and privacy for investors within a protected legal framework.
General Outline of Uses
There are quite a lot of things that you can actually do with a Panama Corporation:
• Set up corporate bank accounts all over the world; manage funds.
• Buy or sell tax free securities, precious metals, commodities, real estate companies, mutual funds and other kind of investments, between others.
• To own and register license, patents and trademarks in Panama and in other countries.
• To register ships under the Panamanian flag, thereby sheltering their operations in this tax-free business.
• Facilitate international trade activities.
• To own the stocks of the foreign subsidiaries and receive their dividends.
• Procure business loans, negotiate financing or joint ventures agreements, mergers and acquisitions.
• To warehouse, process, manufacture, distribute and redistribute any kind of goods from Panama’s Colon Free Zone.
• To act as sales agent for all overseas sales of a foreign corporation of any country in the world, among others.
• Use it as offshore corporation for business out of Panama, which profits are exonerated of declaration and payment of taxes.
Advantages of a Panamanian Corporation
We can point out some of the numerous advantages:
• Deposit or invest, in any form and any country, funds representing its accumulated operating profits, without subjecting such profits to any taxes.
• Easiest, expedite and cheapest way of setting up a tax-exempt offshore corporation.
• No citizenship or residency requirements or restrictions with respect to owners, directors and officers as with most other tax heavens.
• Freedom to appoint nominee directors and officers being natural or juridical persons of any nationality and country of residence (which can also be provided by our law office).
• The legal protection afforded by the confidentiality of business and banking transactions and secrecy laws of Panama.
• Absolute confidentiality of banking transactions under numbered accounts belonging to corporations with nominee directors and bearer shares in hands of the owner.
• Funds and accumulated offshore profits can be deposited or invested in any country of the world without becoming subject to taxation in Panama.
• The tax exemption status provided to offshore companies.
• Complete anonymity and protection of identity afforded to owners of Panama Corporations due to the use of bearer shares of stocks, as well as asset protection.
• Capital does not have to be paid in.
• Stockholder`s and director’s meetings may be held anywhere in the world. Such meetings may be held by telephone or by any other electronic means available and convenient.
• There is no requirement to disclose details of the Beneficial Owner to any Government Authority.
• There is no exchange control in Panama and corporations may transfer funds with complete freedom.
• Low maintenance costs after incorporation, among others.
Incorporation in Panama of a corporation (offshore or local) may take from three to five working days. Panamanian corporations have one of the world’s lowest annual fees and maintenance costs after its incorporation.
The basic requirements to incorporate and register a non-resident corporation in the Republic of Panama may be summarized as follows:
• The name of the Corporation, expressed in any language, but including a word or abbreviation such as “Corporation”, “Incorporated”, “Sociedad Anónima”, “Corp.”, “Inc.”, “S.A.”, “A.G.”
• The main object of the corporation.
• The amount of the authorized capital, indicating the number of shares which such capital is to be divided.
• Whether or not the shares would have no par value, in which event it is not necessary to state the amount of capital, but it would be required to indicate the number of shares which would be issued.
• Whether or not the shares are going to be nominative or bearer shares, or both. It is important for you to know that currently bearer shares have a special legislation.
• The names and addresses of at least three directors.
• The names and addresses of the first officers of the Corporation, which would be a President, a Secretary, and a Treasurer. The Law allows that more than one office be held by the same person.
You can open a corporation in Panama to use it for commercial activities even from other countries without having to be physically in Panama, for tax advantages, asset protection, to incorporate properties, and more.
If you have any additional doubt or would like further information on Corporations, Private Interest Foundations, Residency in Panama or more, our experienced lawyers will be happy to assist you.