Panama - Corporation/Other jurisdictions

The Republic of Panama since 1903 is a completely independent state located in a strategically important region - on the Isthmus of Panama in Central America.
The location at the junction of the northern and southern parts of the Americas allows the country to exercise its exclusive right - to charge for the use Panama Canal for the passage of foreign ships, which brings significant income to the state budget.
In addition, the Panamanian Colon Free Zone is the second largest in the world (immediately after Hong Kong) free economic Kaya zone - has established itself as one of the largest centers of international trade
Panama adheres to the territorial division of taxation and does not charge any taxes on income earned outside the country.. Thus, Panamanian companies that do not receive their income in Panama are completely tax-free.
  • Basic information about jurisdiction

    Area - 75.515 sq. km

    Population - 3,300,000
    Political status - republic
    Capital - Panama Сity
    Official language - Spanish, widely used English.
    Official currency - US dollar (USD), Bilboa (RAV)
    Time zone – GMT–5
  • Company type

  • Directors of the company

    Number: at least 3

    Status: natural or legal persons
    Residents: residents of any country
    Information about directors: only in the Register of Enterprises of Panama
    Nominee directors: allowed
  • Shareholders of the company

    Number: not regulated
    Status: not regulated
    Residents: not regulated
    Information about shareholders: only   in   registers of the company itself
    Nominee shareholders: allowed

  • Secretary Company

    Quantity: at least one
    Status: natural or legal persons
    Residents: residents of any country
    Information about secretary: only in the Register of Enterprises of Panama
    Nominee Secretary: allowed

  • Authorized capital of the company

    Standard declared capital - 10.000 USD.
    There are no requirements for payment of this capital or part of it.
  • Company name

    Must end with the words '' Sociedad Anonima '', '' Incorporated '', '' Corporation '' or the abbreviations '' Inc. '', '' Corp. '', '' S.A ''. Registration of names containing the words '' Bank '', '' Insurance '', '' Trust '', '' Assurance '', '' Imperial '', etc., is allowed only with the presence of an appropriate license.
  • Information about the real owner of the company

    Information about the real owner is submitted only to the registered agent and is confidential.

  • Annual Return

    Requirements for the submission of the annual report is not put forward.
  • Financial Statement

    Requirements for the submission of   financial report   non-advanced.

  • Taxation

    Taxation of income received outside of Panama - 0%.

  • Double tax treaties

    Panama does not have double tax treaties.

  • The term of registration of a new company

    6-7 business days; The term of receipt of the full package of documents is 5-6 weeks.
  • Acceptance of third-party companies for service FIVECONSULT

    Perhaps, but only by agreement with the previous service agent in Panama.

  • A set of constituent documents of the company

    1) registration certificate - notarial act on the establishment of a company with a mark of the Register of Enterprises, certified by a notary and apostil in Spanish (Escritura Publica);

    2) translation of the document mentioned in paragraph 1 into English, certified by a notary and apostil ;

    3) an additional extract from the database of the Register of Enterprises (Certificada) in Spanish;

    4) translation of the document referred to in paragraph 3 into English certified by a notary and apostille; < / p>

    5) the form of transfer of shares from the initial founders (Subscription transfer);  

    6) the general trust ness (General Power of Attorney), signed by the nominee director;

    7) minutes of the first meeting of directors (Written resolution of Directors) on the distribution of shares;  

    8) share certificate (ShareCertificate ), signed by nominee directors;

    9) Resignation letters of nominee directors, signed, but without a date;

    10) company stamp.

  • "Ready-made" companies

    Buying "ready-made" companies is possible. Shelf companies are always available.

  • FIVECONSULT comment:
    Panama is a classic offshore jurisdiction that is very popular among businessmen all over the world, providing high quality corporate services. The authorities of Panama, which actively provide offshore services, at the same time could avoid including jurisdiction in the black lists of OECD organizations, FATF. Therefore, if it is necessary to use a classic offshore company, Panama is ideal.
    Features of offshore registration in Panama
    All offshore companies in Panama are registered in accordance with the General Corporation Law governing business activities in the international market. According to this law, it is allowed to establish offshore companies of various legal forms in the country, but a foreign investor is most interested in such types of offshore companies in Panama as a joint-stock corporation established by one or more legal entities / individuals (Sociedad Anonima), and a limited liability company, established by two or more partners (Sociedad de Responsibilidad Limitada). 
    Requirements for Offshore in Panama 
    When registering an offshore company in this state, you need to consider ultiple founding moments.
    First, a company must have a registered address in the offshore jurisdiction and the local office for the management of the organization's activities. Despite the fact that the meeting of shareholders and directors of offshore is allowed to be held anywhere in the world, and financial documents are stored in any territory, Panamanian law prohibits holding meetings by phone, and minutes of meetings cannot be signed without obligatory signature.  
    Secondly, a registered offshore company can not engage in insurance, reinsurance, stock, banking and trust activities without the permission of the Ministry of Trade and Industry of Panama. 
    Third, any offshore in Pan I am obliged to pay annual state fees for renewal of registration. In the event of non-compliance with this obligation, an offshore company is excluded from the register of offshore companies in Panama. Recovery in the register is made only after the payment of the relevant duties and fines.