PANAMA COMPANY FORMATION

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Our Promise

Ready made Panama Companies are available and can be provided to you upon request.

  • Deliver your Panama Company in Same Day
  • Open a bank account with e-banking and credit card
  • Secure your tax optimisation
  • Value for money services, no hidden costs
  • Full confidentiality
  • Prompt, professional and personal service at all times
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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.

 

KEY BENEFITS

Panama Company Formation and Its Advantages

  • Zero Tax on foreign Income (Panama operates a territorial tax system);
  • Interest earned on bank accounts maintained by a Panamanian Company in Panama is exempt from tax in Panama;
  • No citizenship or residence requirements for owners and directors;
  • Privacy – Names of beneficial owners not publicly available. The named of the shareholders are not filed with the Public Registry;
  • A Panamanian Company in good standing may redomicile in another jurisdiction and vice versa;
  • There are no exchange controls or restrictions on the free movement of currency;
  • Meetings of directors and stockholders can be held anywhere in the world;
  • No reporting requirements;
  • Panama Companies do not require any paid-in capital and there is no time limit on when the Authorized Capital must be fully paid.
 

PANAMA TAXES

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.

 

PANAMA COMPANY CORPORATE AND LEGAL FEATURES

 

COMPANY NAME

  • A proposed company name can be confirmed on same day;
  • All company must end with the suffix “Incorporated”, “Sociedad Anonima” “Corporation” or the abbreviation “Corp”, “Inc.” or “S.A.”. Companies can not use the suffix “Limited” or “Ltd”;
  • Names identical or similar with an already registered company, by a way which create confusion, will be rejected by the Registrar;
  • Name approval is required.

SHARE CAPITAL

  • The issued share capital of a Panama Company can be one (1) share either with par value or not;
  • Bearer shares can be issued;
  • Preference shares and non-voting shares as well as other categories and classes of shares are permitted;
  • The standard currency in Panama is the US dollar. However, the share capital may be converted in any other currency;
  • Minimum of one (1) shareholder is required;
  • Shareholder meetings may be held anywhere in the world.

DIRECTORS

  • Minimum of 3 directors required, the directors may be nominees;
  • Directors may be of any nationality;
  • Board of Director Meetings can be held anywhere in the world.

SECRETARY

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.

OFFICERS

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.

REGISTERED OFFICE

The registered office must be in Panama.

LIMITATION ON ACTIVITIES

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.

RESTRICTIONS ON TRADING

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.

LANGUAGE OF LEGISLATION AND CORPORATE DOCUMENTS

Spanish and certified English translations

FINANCIAL STATEMENTS

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.

CONFIDENTIALITY

There is a high level of anonymity and privacy. No disclosure of beneficial ownership to authorities.