Panama Companies & Panama Corporations

Panama is known throughout the world for two reasons: the Panama Canal and the fact that the Republic of Panama is a well trusted and respected offshore jurisdiction. The Republic of Panama is located in Central America and has its own civil law code rooted in the Spanish Civil Code. Panama has a very vibrant services sector which is the backbone of the country’s economy. Services offered include incorporations of Panama Companies and Foundations, International Banking (onshore and offshore banking), insurance, and registration of flagship among others.

Our professional team helps with processing second citizenship applications and giving advice on application requirements. Application documents must be certified and notarized and in many cases need an Apostille. Documentation for second citizenship applications is therefore strict. To ensure that all documentation is being prepared correctly, clients are advised to keep in contact with their registered agents and to ask all the questions necessary.

Panama Companies are well sought after. As an offshore jurisdiction and tax haven the Republic of Panama offers many incentives to its clientele. Companies incorporated in Panama but conduct business outside of the country and generates its income outside of the republic pay no taxes. Having a company incorporated in the Republic of Panama means that no payment of income tax, capital gains tax, inheritance tax or corporate taxes will be made. This therefore means that companies incorporated in Panama will then be able to maximize capital. Companies registered in Panama only have to pay each year to the Government of the Republic of Panama it annual renewal fee as stated by the law to ensure that it remains in good standing.

Panama has signed no tax treaty with other countries. This ensures that the financial status of owners and companies remains private and any assets in a Panamanian Company cannot be taxed or seized by a foreign government or authority. Panama further ensures the privacy of clients by making sure that the name of the rightful owners of the company is not filed with the Mercantile Registry. Generally information filed with the Registry is public information. Nominee officers of the business company are easily and quickly put in place in the jurisdiction of Panama to ensure that clients get maximum confidentiality.

The legislation of Panama does not obligate Panamanian Companies to keep financial records for supervision by persons outside of the company. Company records are kept for the benefit of the shareholder of the company. These records can be kept anywhere in the world. Likewise a Panama company can have its shareholders meeting at any time anywhere in the world as long as it is convenient for all the shareholders. Meetings can be kept via the telephone, teleconference or any modern technology available.

It is a requisite that Panamanian Companies are incorporated by enlisting the services of a registered agent. The agent will ensure that all necessary documents are correct. Agents act as a liaison between the clients and the Government of Panama. All companies registered with the Mercantile Registry by following an extremely straightforward procedure. All that is needed to incorporate a company is a complete Articles of Incorporation. This document contains the information such as name of the company, name and address of the subscribers to the article, name and address of the agent, number of directors, number and classes of shares, types of shares and the laws of the company.

The legislation regulating the incorporation of companies does not allow for less than three company directors. The Articles of Incorporation can be written in any recognized language. Articles which are not written in Spanish (official language of the Panama) should ne accompanies by a translated reproduction of the document done by a recognized language translator of the Republic of Panama. The Articles of Incorporation must be certified by a recognized Notary.

A Company registered in Panama must have one of the following word or abbreviation included in its name; Corporation (Corp), Incorporated (INC), Societe Anonyme or Sociedad Anonima (S.A) or Aktiengellshcaft (A.G). Companies name cannot wend with the following; Limited, Financial, Trust, Bank, Foundation. The names of the companies should not suggest any connections to the Government of the Republic of Panama or any local authority. Also, names of companies should not imply that the company is engaged in banking or banking services.

Panama Companies are used for different purposes including; assets protection, tax and estate planning, international trade, to purchase assets such as real estate, art and jewelry among other purposes. Panama companies offer flexibility, confidentiality and above all zero tax. All this is offered on a country with a stable political and economic environment which is well known as an offshore jurisdiction.

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