Panama Corporation

A Panamanian Corporation has the following characteristics::

1. Shareholders:
   Minimum of one shareholder is required to form a Panama Corporation and we issue shares in registered form only. No details of the shareholders appear on the public file but a register of shareholders must be kept at the registered office address of the company in Panama.
2. Directors:
   Panamian law requires a Panama Corporation to have a minimum of three directors they can be natural or corporate. The Business of every Panama Corporation shall be managed by a board of no less than three director, whom can be natural or corporate. Details of the Directors must be registered on the public file.
3. Officers/Secretary:
   The directors of a Panamanian Corporation must appoint a President, Secretary and Treasurer. Whilst these offices may be held by one person, who is neither a director or a shareholder, the directors may equally appoint themselves.
4. Restrictions on Name and Activity of a Panama Corporation:
   Name of a Panama Corporation must include a word, phrase, or abbreviation distinguishing it from a sole proprietorship or partnership and can be expressed in any language.
   The most common endings include: “S.A.”, “Corporation”, “Corp.”, “Incorporated”, and “Inc.”. Availability of a corporate name can be confirmed within a few hours.
5. Local Requirements:
   As a matter of local company law the Panama Corporation must appoint a Panama resident as registered agent who must be Panama Lawyer or a firm of Lawyers. We would generally provide these services as part of the domiciliary service fee.
6. Timescale in Setting Up a Panama Corporation:
   Incorporation of a Panama Corporation takes approximately 1 week to be completed. We do keep ready-made companies in stock available for immediate purchase.
7. Annual Reporting:
   The Panama Corporation is not required to file accounts.
8. Taxation of a Panama Corporation:
   Panama Corporations offer complete tax exemption on foreign source income and transactions carried out outside the Republic of Panama, even though same may be managed from Panama. Only annual franchise fee / tax of US$ 250/- is payable in first year and thereafter US$ 300/- annually for share capital of US$ 10,000/- or 500 shares of no par value.
   Panama Corporations are non-resident companies and hence not entitled to tax residency certificate and also can not avail benefits under any Double Tax Avoidance Agreements.
9. Books, Records, and Seal:
   Stock register and minutes book of a Panama Corporations may be kept by electronic means or any other method authorized by law, that allow to determine with certainty the operations of the corporations, as long as said records can be printed. These records may be kept anywhere in the world as declared in the Articles of Incorporation. Panamanian Corporations do not require a seal, though it may be adopted if approved by resolution or if stated in the Articles of Incorporation, or in the by-laws, if any.
10. Panama Corporation’s Confidentiality:
    Unless violations of Panamanian laws occur, a Panama corporation cannot be forced to divulge confidential information to Panamanian or foreign authorities. Also, share certificates may be issued to the bearer. As, per Law Decree No. 9 of 26 February, 1998 which creates the Superintendence of Banks, the identity of bank account holders can not be divulged unless the deposits are guarantees of assets and the accounts are under investigation or supervision by the Superintendent.