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Ready made Panama Companies are available and can be provided to you upon request.
Panama is one of the most popular offshore jurisdictions worldwide. Its main areas of local economy are offshore banking, commerce and tourism. Panama has incorporated more than 500,000 companies by the Panamanian Registrar. Panama is a common international trade way.
Panama Corporations are created under the General Corporation Law, Law 32 of February 26, 1927. They are a well-known choice due to the fact that they provide a flexible corporate structure, privacy features, ensure legal framework and are recognised by the international financial sector.
A great advantage Panama laws offer Panamanian Offshore Corporations (a.k.a. IBC’s) is the possibility of developing tax free offshore activities, since Panama has a territorial tax system.
Panamanian corporations thus serve businessmen, investors, or foreign companies for making savings on tax payments.
An offshore corporation may open bank accounts in or outside Panama and own property located outside Panama without having to pay taxes in Panama for this.
Panama Company Formation and Its Advantages
Panama Company Formation and Its Tax Advantages
Panama offers the best offshore fiscal platform for doing offshore business, because in Panama we have a territorial tax system, meaning that offshore income (income derived from activities outside of Panama) is not taxed by the Panamanian government.
Non-resident Panama Offshore Companies offer some of the following tax advantages:
No Income Tax: Panama corporations do not pay taxes on offshore income derived from sources outside of Panama;
No Capital Gains Tax: Panama corporations do not pay capital gains taxes on gains resulting from the purchase & sale of securities transacted outside of Panama (for example, the purchase and sale of publicly traded securities on non-Panamanian stock markets);
No Interest Income Tax: Panama corporations do not pay taxes on any bank interest income earned either inside or outside of Panama (for example, there is no tax on interest earned from savings accounts or certificates of deposit in Panama);
No sales tax: Panama corporations do not pay taxes on product or service sales that are conducted outside of Panama;
No Tax on Issuance of Corporate Shares: Panama corporations do not pay taxes on issuance of shares, whether bearer or nominative;
No dividend tax to shareholders: Shareholders of non-resident offshore Panama corporations do not pay taxes on dividends, for income generated from sources outside of Panama;
Licence Fee: The only tax paid by non-resident offshore Panama Corporations is the flat annual corporate franchise tax of US$400.
A company secretary must be appointed, who may be a natural or corporate person. The company secretary may be of any nationality and need not be a resident of Panama.
Three (3) officers are required when incorporated (President, Treasurer and Secretary). Directors can act as these officers. Officers may hold more than one position, with the exception that the President and Secretary cannot be the same person. Other positions may be combined.
The registered office must be in Panama.
Panama Companies cannot undertake without the previous approval by the Panamanian authorities, banking services, trustee services and trust administration, fund management, insurance, collective investment schemes and any other activities which are ancillary with the banking, finance, fiduciary or insurance services.
Cannot undertake the business of banking, trusteeship and trust administration, insurance, assurance, reinsurance, fund management, investment funds, collective investment schemes or any other activity that would suggest an association with the banking, finance, fiduciary or insurance businesses.
Spanish and certified English translations
Whilst there is no requirement to file audited accounts with the authorities, a company is required to keep financial records, which reflect the financial position of a company.
There is a high level of anonymity and privacy. No disclosure of beneficial ownership to authorities.