Panama Incorporation Procedure
Panama key Points
- Time – 5 – 7 days to incorporate your company
- Directors – a minimum of three directors ,corporate or individuals
- Shareholders – only one shareholder of any nationality, is required
- Share Capital – the standard authorised share capital for your company is US$10,000 and may be expressed in any currency
- Share Capital – The capital of the corporation need not be paid at the time of the incorporation
- Support – using our 20 years experience we guide you throughout every step of the company formation process
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 Resident Directors
- Notarised Meeting of Board of Directors
- Original Share Certificate
- Notarised and Apostilled Power of Attorney
- It may be owned by a single person
- The capital of the corporation need not be paid at the time of the incorporation
- 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
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.
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.
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 need to file any tax returns in Panama for the company if all the income was offshore derived.
Financial Statement Requirements
No requirement if income is of non Panamanian sources
Under Panama’s Corporation Law it is possible to have a corporation owned by only one person. The Law requires a minimum of three directors (a president, a treasurer, and a secretary) . Nominee director services are included in our fees for compliance purposes if required.
Panama Corporation – Privacy
There is also no registry to record transfer of the corporation ownership.