Panama - Incorporation Procedure

Company Type	Time to Incorporate	Cost
Corporation	5 - 7 days	£740

Timescale to incorporate a Panama Corporation

Normally takes 2 days to incorporate your company and you do not have to visit Panama

Authorised and Issued Share Capital

The standard authorised share capital is US $10,000 divided in to 100 common voting shares of US $100 each or 500 common voting shares of no par value; the capital may be expressed in any convertible currency. The minimum issued capital is either one share of no par value or one share of par value. Share Capital does not have to be paid into a bank account before the incorporation.

Taxation

No corporation tax is levied on non Panamanian sourced income. Companies which do not carry out activities within Panama and do not obtain income from a Panamanian source, are only subject to the payment of a fixed annual tax of around US$300 dollars. There are no double taxation agreements.

Offshore derived income is not taxed and does not need to be reported. You can have a Panama Corporation that banks in Panama and has an office in Panama and yet will not pay any Panama taxes if all the income is derived offshore.

Panama Corporation - Tax Benefits

There is no tax imposed by Panama on any offshore derived income and there is not even a need to file any tax returns for the corporation if all the income was offshore derived. If you maintain an office in Panama, have a phone in Panama, have a Panama Corporation, and even have a bank account for the corporation in a Panama Bank yet there is still no need to pay taxes or even file tax returns if all the income is offshore sourced.

Financial Statement Requirements

No requirement if income is of non Panamanian sources

Corporate Law

Under Panama's Corporation Law it is possible to have a corporation owned by only one person. The Law requires a minimum of three officers (a president, a treasurer, and a secretary) and three directors. However, one person may hold two or more offices. It is not necessary that the directors or officers be Panamanian nominees or shareholders.

Panama Corporation - Privacy

There is also no registry to record transfer of the corporation ownership.

Advantages of Panama Incorporation

Panama has a number of features that make this an asset protection jurisdiction for corporations and we will supply you with:

• Original Articles of Incorporation   
• Official translation into English of Articles of Incorporation   
• Notarised undated Letter of Resignation of Nominee Directors (if Nominee Directors)   
• Notarised Meeting of Board of Directors   
• Original Share Certificate   
• Notarised and Apostilled Power of Attorney
• Incorporating a corporation takes approximately 24 hours and four days to be registered at the Panama Registry
• It may be owned by a single person
• All the shares of the corporation may be issued to the bearer
• The capital of the corporation need not be paid at the time of the incorporation
• The Directors and officers can be any nationality
• The Board of Directors must be composed of at least 3 directors
• Meetings of the Board of a Panama corporation may be held in any country and the directors can attend personally or by proxy
• The meetings of shareholders of the corporation may be held in any country
• The corporation may engage in any lawful business, even if it is not similar to any of the objects of the corporation specified in the articles of incorporation
• Corporations only have to pay income tax in Panama for income derived from sources within Panama
• The freedom to appoint directors and officers of a any nationality and country of residence
• The legal protection afforded for the confidentiality of business and banking transactions
• The tax exemption status provided to offshore companies
• The freedom of capital movement in and out of Panama and the absence of regulatory supervision