Incorporating in Panama IBC 2018-12-03T10:41:36+00:00

Panama
Company Formation Services

Incorporating in Panama IBC

Incorporation in Panama

International investors, financiers and businessmen find Panama an ideal foreign base country for world-wide operations and transactions. Panama taxes according to the territoriality principle (that is, it does not tax foreign-source income), only the income produced locally is taxable, disregarding the citizenship of the taxpayer. Dividends are not included as income subject to income tax.

Due to its structure, geographical position, political stability and characteristics of its economy, Panama has become one of the most important tax havens of the Western Hemisphere. It has excellent international transportation and communication systems; the United States Dollar has been a currency of legal tender for more than ninety years.

Panama has taken several steps to modernise its economy and promote foreign investment. Most Panamanian and foreign investors choose to form Corporations. There are no exchange controls, currency restrictions or reporting requirements, and Panama imposes no limits on monetary transfers to and from the country.

Benefits:
– No reporting requirements.
– It is possible to keep a business under direct control while maintaining complete confidentiality. Names of beneficial owners are not publicly available.
– It is not required to file any changes to ownership schedule, after the registration is complete.
– It is not required to maintain a legal address.
– No Citizenship or residency requirements or restrictions with respect to Owners, Directors and Officers as with most other tax havens.
– Stockholders’ and Directors’ meetings may be held anywhere in the world.
– Capital Shares may be issued in a nominative form, or to “Bearer” – the ideal protection of the Corporation owner’s identity and total privacy.
– Funds and accumulated offshore profits can be deposited or invested in any country in the world without becoming subject to taxation in Panama.
– One person might hold all three positions of a President, Corporate Secretary and Treasurer.

Other common Advantages of Panama IBC’s are:
– Ultimate financial privacy
– Asset Protection
– Income Tax Reduction, or elimination
– No inheritance, succession or gift taxes
– Protection from inflation
– Reduction in legal liabilities
– Reduction in operating expenses
– Freedom from currency exchange control
– Local Government concessions, subsidies and support
– Data on Owners and Directors is not publicly available and remain confidential
– Easy access to North American and European Capital Markets
– No International Trade Tariffs.
– No annual tax return requirements.
– No import/export quantity limitations.
– No costly bureaucracy

Company Formation
Type of Company for International Trade Investment

Generally, corporations are incorporated under the Corporation Statute Law 32 of the 1927 Commercial Code. Limited Liability Companies and Limited Partnerships are used also.

Procedure to Incorporate

By presentation of the proposed corporation’s signed Articles of Incorporation before a Notary Public who creates a Public Deed for registration at the Public Registry.

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.

Registered Office Required

Yes, must be maintained in Panama at the address of the Registered Agent.

Name Approval Required

Yes.

Time to Incorporate

One day, subject to name approval.

Name Restrictions

A name that is similar to or identical to an existing company. Names of well known companies incorporated elsewhere or a name that implies government patronage.

Language of Name

Names may be expressed in any language using the Latin alphabet. The Registrar may request a Spanish or English translation.

Names Requiring Consent or License

Bank, building society, savings, insurance, assurance, reinsurance, fund management, investment fund, trust or their foreign language equivalents.

Suffixes to Denote Limited Liability

All Panamanian corporations must end with the suffix Corporation, Incorporated, Sociedad Anonima or the abbreviations Corp, Inc or SA. They may not utilise the suffix Limited or Ltd.

Disclosure of Beneficial Owner to Authorities

No.

Compliance

Authorized and Issues 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.

Classes of Shares Permitted

Non-voting shares, preferred shares and registered shares. Bearer shares can be issued but no-par-value and bearer shares must be fully paid when issued. The registered agent must keep the bearer shares certificate in safe custody and must notify the Registrar that the shares have been issued.

Taxation

No corporation tax is levied on non-Panamanian sourced income.

Double Taxation

None.

License Fees

Annual Franchise Tax of US$350 is payable – Pls check remarks below

Financial Statement Requirements

No requirement if income is of non-Panamanian sources.

Directors

Both corporations and natural persons may act as directors and the minimum number of directors is three. They may be of any nationality and need not be residents of Panama. Panamanian companies are also required to appoint a minimum of three officers (president, secretary and treasurer) who may also be the directors.

Company 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.

Shareholders

The minimum number of shareholders is one.

Shareholders’ records are not publicly accessible; however, all relevant information and identification documents must be deposited at the local registered agent’s office.