Panama Corporations

Panama an independent country in Central America has one of the best Services Sector available. The country known worldwide for the Panama Canal is a well respected banking centre and jurisdiction for the registration of Companies. The Republic of Panama has earned the title of a well respected popular offshore jurisdiction for the fact that the service being offered is reliable and professional and above all the tax benefits to customers are enormous. Panama Corporations also referred to as Panama Companies were first registered when the necessary laws were put in place in 1927. The Panama Corporation Law took its foundation in the Delaware Corporation Law which existed around the same time.

Panama offers numerous business and investment opportunities, particularly due to its free trade zones, offshore financial centers and great company formation services for offshore ventures. Our team has been dedicated to presenting clients to various channels for asserting financial freedom. People with dual nationality in particular enjoy greater visa free travel and access to new markets including, education, health and job opportunities. In St. Kitts and Nevis dual nationality programs aim to attract foreign direct investments. Applicants are required to submit applications according to standards and to keep in contact with their registered agents. T become eligible to apply applicants must under due diligence and submit all application documents such as passport copies of all persons named in application forms. Other professional services besides economic citizenship include company registration services for IBCs and LLCs as well as trusts and foundations. These incorporation tools are ideal for reducing tax liability and maximizing profits as much as possible.

A Panama Corporation can be incorporated by at least two persons regardless of their nationality. Panama Corporations must be registered by engaging the services of a registered agent or offshore services provider in Panama. Persons who act as agents in the Republic of Panama are professionals such as lawyers. All the necessary documents must be submitted through an agent. For a Panama Corporation to be incorporated the laws of the Republic clearly stipulates that a complete Articles of Incorporation must be signed by the proposed company owners or beneficiaries and submitted to the Registrar of companies at the Mercantile Registry. The Articles of Incorporation must comprise of the following very essential information:

  • The names and addresses of the owners of the proposed company
  • The name of the company which cannot be that of a company already registered in the Republic of Panama
  • The objectives of the company
  • The Corporate Capital, the par value of the shares and the number of shares to be issued. The intentions of the company concerning the issues of shares without par value
  • The address of the company
  • The name and address of the agent
  • The proposed life endurance of the corporation
  • The by-laws of the corporation

The Articles of Incorporation has to be certified by a Notary and can be expressed in any language. The document can be executed from anywhere in the world. Articles written in any language other than Spanish should be accompanied by a translated copy authorized by a language translator in the Republic of Panama. Once the document has been revised at the Mercantile Registry and there are no complications the corporation will be incorporated and under the laws of Panama it becomes a legal entity.

Corporations registered in Panama can issue shares of more than one class. Shares can be issued with or without Par Value but the by- laws of the company must state the amount to be issued. Shares issued in a Panama Corporation each have privileges, voting rights, restrictions as dictated by the laws of the corporation.

A Panama Corporation can be used for many purposes. A Panama company can be used for asset protection which helps clients to reduce their losses in case of civil litigations or business deal gone wrong, by placing assets in a Panama corporation they are no longer in the name of the owner. Panama companies can also be used for tax planning. Panama is a tax haven and companies pay no taxes (capital gains tax, corporate tax, estate tax etc) whatsoever on capitals gained outside of the Republic of Panama. An annual renewal fee has to be paid to the government of the Republic of Panama. If the Company was registered in the first half of the year fees have to be paid by January each year and by July for companies incorporated in the second half of the year. Fees are paid so that companies maintain good standing.

The laws governing the Panama Corporation affords the company flexibility. Companies incorporated in Panama are not obligated to keep annual shareholders meetings. Shareholders meetings can be kept at the convenience of shareholders at any time and place in the world. Company’s auditing reports are not supervised by any Government Official. If these are kept is for the benefit of the shareholder and that too can be kept anywhere in the world.

A feature of a Panama Corporation which is advantageous to the client is the fact that Panama Corporation Law states that nominee directors and shareholders can be appointed. By appointing nominee officers for the company the names of the true owners of the companies is not made available at the Registry. Nominee services are provided by agents.

The Republic of Panama is politically and economically stable. The conditions in the country give way to the growth and protection of clients business. Known as the hub of International Business in Central America, Panama has decades of experience which will enable the country’s services sector to become more popular thus making Panama as a top offshore jurisdiction.

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