Offshore Panama Corporations
The laws of the Republic of Panama of 1927 made provisions for the incorporation of Panama Corporations. Today such companies have become very popular. The Republic of Panama has put legislation in place which makes it possible for persons to incorporate companies without having to make their identifications known to the public or government. Incorporation of Panamanian Corporations takes as little as five days. Owners of a Panamanian Corporation can conduct business outside of Panama without any hindrances.
To form a Panamanian Corporation at least two persons is needed. To incorporate the company the persons must sign a complete Articles of Incorporation which must include the following information:
ü The name and address of each person
ü The name of the corporation. This can be in any language
ü The objective of the company
ü The amount of Corporate Capital which includes the value of shares and number of shares
ü The number of shares per person
ü The name and address of the company’s agent
ü How long the company will last
ü The number of directors which is no less than three. The name and address of the persons must be included
ü The by-laws of the company
The shares in a Panama Corporation can be issued in Panamanian currency. The official currency of Panama is the Balboa and the United States Dollar is widely used. If the Corporation decides to issues different classes of shares, the privileges, restrictions and voting rights of shares must be stipulated. Shares can be issued with or without par value. The completed Articles of Incorporation must be files or registered at the Mercantile Registry.
Prospective Corporation owners can use nominee directors which is a service provided by most agent or offshore services provides. Each Company must have a President, Secretary and Treasurer but nominee services can be provided for each. By using nominee services the names of the rightful owner does not appear in the public records of Panama.
Shareholders meetings for a Panamanian Corporation can be held at any time the shareholders desires. A notice of the meeting stating the purpose of the meeting must be given out by any officer of the company. The time and venue must also be stated in the notice. The venue of such meetings is determined in the by-laws of the Corporation or any other place the shareholders decide on. The shareholders meetings of Panamanian companies can be held in or out of the Republic of Panama.
Corporations who do not operate in Panama are not obligated to keep accounting records in Panama. If the Corporation decides to keep accounting records this can be kept anywhere in the world. The Corporation is by law obligated to maintain a Stock Register and a Book of Minutes which can also be kept anywhere in the world. Such corporations whose capitals are gained outside of the Republic of Panama are tax free. These companies pay no taxes except for an incorporation fee and an annual renewal fee which is paid to keep the company in good standing.
The annual renewal fee is fixed regardless of the authorized share capital of the company.
A Panama Company is a very good vehicle to utilize when considering asset protection or tax planning. Corporations in Panama have a flexible structure and can be incorporated anonymously. Panama is one of the most popular offshore jurisdictions in the world and the country has signed no tax treaty with other countries so there s no reporting of the affairs of corporation owners to their country.