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Panama Corporation

SYNOPSIS:

The Republic of Panama occupies an area of 77,082 square kilometres and is situated between Costa Rica in Central America and Columbia in South America with coastlines on both the Pacific and Atlantic Oceans. Its capital, Panama City, is on the Pacific coast at the entrance of the Panama Canal.

Population of Panama is approx. 2.6 million. The Constitution of Panama provides for a Republican form of Government.

Panamanian law is based on the Spanish Civil Code, although the company law has been taken from the corporation law of Delaware in the USA.

The official language is Spanish. Documents in a foreign language, which required to be filed at Companies Registry must be accompanied by a Spanish translation. Company documents in Spanish are accompanied by an English translation.

Corporations organized in accordance with Law no. 32 of 1997 can conduct business and exercise their powers in foreign countries.

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.

11. Renewal of Panama Corporation:

Renewal for Panama Corporations will fall depending on the date of incorporation as per below:

Company Anniversary date between: Due date:
January to June (1st half) Before July – 31st
July to December (2nd half) Before December – 31st

In case of late renewal, government and service charges shall be applicable for late payment of it’s annual license.

Latest valid passport copy and recent utility bill for address proof of shareholder/director are required to be submitted at every renewal as a part of enhanced due diligence. If shareholder is a corporate entity, then latest certificate of incumbency and above stated docs of directors would be required.

12. Documents Required in Setting Up a Panama Corporation:

KYC Documents for individual Director/Shareholder:

  1. Passport – original to be verified personally in our office, otherwise client can provide an original notarized copy of the passport
  2. Proof of address (in the form of utility bill, dated less than 3 months)
  3. Bank reference (dated less than 3 months with satisfactory record clearly mentioned and also the time period the client has been dealing with the bank: minimum of 2 yrs)
  4. Detailed CV
  5. Professional reference letter (can be issued by Lawyer or Certified Public Accountant)
  6. Dully filled FATCA Form
  7. Notarized US Declaration (if a US Person)

KYC for Corporate Director/Shareholder:

  1. Certificate of Incorporation
  2. Registered address and place of business
  3. Certificate of Current Standing if incorporated more than 1 year
  4. Register of Directors
  5. Register of Shareholders
  6. Memorandum & Articles of Association

All documents of the corporate entity must be certified by a Lawyer or Certified Public Accountant

Incorporation of a Panama Corporation begins from USD 1,890/-

Global Business Services DMCC has helped many individuals and corporate entities to set up a Panama Corporation. Our Company acts as a one stop solution for Panama Corporation incorporation services.

If you are looking for Panama Corporation set up, please get in touch with us for professional assistance.

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.

GBSOur Office
Organically grow the holistic world view of disruptive innovation via empowerment.
+971 4 4471803
OUR LOCATIONWhere to find us?
For company formation and company incorporation services please contact us at our mailing address:

Office No.12A-06,
13th floor HDS Tower,
Plot No. F2,
Jumeirah Lakes Towers,
Post Box 309074,
Dubai (U.A.E)

GET IN TOUCHGBS Social links
Taking seamless key performance indicators offline to maximise the long tail.
GBSOur Office
Organically grow the holistic world view of disruptive innovation via empowerment.
+971 4 4471803
OUR LOCATIONWhere to find us?
For company formation and company incorporation services please contact us at our mailing address:

Office No.12A-06,
13th floor HDS Tower,
Plot No. F2,
Jumeirah Lakes Towers,
Post Box 309074,
Dubai (U.A.E)

QUICK LINKSOur Services
GET IN TOUCHGBS Social links
Taking seamless key performance indicators offline to maximise the long tail.
AVANTAGEHeadquarters
Organically grow the holistic world view of disruptive innovation via empowerment.
OUR LOCATIONSWhere to find us?
GET IN TOUCHAvantage Social links
Taking seamless key performance indicators offline to maximise the long tail.
AVANTAGEHeadquarters
Organically grow the holistic world view of disruptive innovation via empowerment.
OUR LOCATIONSWhere to find us?
GET IN TOUCHAvantage Social links
Taking seamless key performance indicators offline to maximise the long tail.

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Copyright © 2020 Global Business Services.

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