Panama Corporation laws have long been the archetype for other offshore jurisdictions around the globe. The Panama Company was established as early as 192 and today Panama Corporations are recognized and well reputed globally. The incorporation of Panama Corporations and Panama foundations have aided in making the Republic of Panama the second most popular offshore corporation jurisdiction in the world. Panama Corporations are easy to set up and registration takes a matter of hours.
A Panama Corporation has many uses. A corporation can be used for asset protection. A Panama Corporation can own stock, bank accounts, real estate, or other assets whilst the name of the rightful owner is protected. Offshore companies are often used for tax planning and Panama Corporations can be no different. Assets or capital in a Panama Corporation that are gained outside of Panama are not subjected to any income tax, capital gains tax, estate tax, corporate tax among others. The only tax paid by a Panamanian Corporation is an annual renewal fee. The renewal fee is minimal and is paid to keep the Panama Company in good standing order.
Panama Corporations are not required to present financial records to any auditors or persons outside of the corporation. A Panama company is not obligated to keep financial records. In fact any records kept are for the use and benefits of the corporation’s shareholder and these can be kept anywhere in the world. Similarly, the shareholder’s meeting of corporations can be held anywhere in the world. The shareholders determine the time and venue for the meeting. Meetings can be held over the telephone or using any modern means of communication available to them.
Panama Corporations can be registered by persons of any nationality. Two or more persons are needed to incorporate a corporation. The services of a registered agent in Panama must be solicited in order to incorporate a corporation in Panama. For the registration of a Panama corporation/Panama Company a complete articles of association is needed. The articles of association must include the following:
- The names of the subscribers for the Panama Corporation/Panama Company
- The name of the Panama corporation
- The objectives of the Panama corporation
- The corporate capital of the Panama corporation
- The number of shares
- The address of the Panama corporation
- The name and address of the agent in Panama
- The name and address of the corporation’s directors. Panama corporations can have no less than three (3) directors
- The duration of the Panama corporation
- The by-laws of the Panama corporation.
The articles of incorporation for a Panama Company must be notarized. The articles of Incorporation for the Panama Company can be written in any language. If the articles are not written in Spanish it has to be translated by a translator of the Republic of Panama. The articles of incorporation are filed with the Mercantile Registry and if approved the proposed Panama corporation then becomes a legal body in the Republic of Panama.
Panama has no tax treaty with other countries therefore this guarantees that information concerning the finances of the rightful owners of Panama Corporations/Panama companies will not be given out to other parties. The names of owners of Panama Corporations are not filed with the mercantile registry and therefore are not public information. To further protect the owners of the Panama Company, nominee corporation officers are provided by agents.
Panama Companies offers clients a way to protect assets and cut back on taxes in a country which is stable politically, socially and economically. Once incorporated in Panama the offshore Panama Company can do business anywhere in the world.