Panama

The Republic of Panama is an attractive jurisdiction for investors from all around the world, primarily due to its zero tax rate. The US dollar is the official currency of the country and there are no requirements to file corporate reports of any kind. Furthermore, the income earned from sources outside of the country is exempt from taxes.

Basic characteristics of a Panama corporation: 

• No restrictions on nationality
• No requirements to disclose ownership
• No restrictions concerning ownership of shares
• No residence requirements for directors/officers
• No paid up capital requirements
• No income tax, if income is produced outside Panama
• Total tax exemption on all and any business activities or transactions carried out outside the jurisdiction
• No exchange controls
• No requirements to file annual financial statements
• No requirement to hold Annual General Meetings of shareholders or directors
• Total secrecy and anonymity
• Reasonable annual registration tax and resident agent fees
• Articles of Incorporation may be drawn up in any language

Incorporation requirements

We will need the following information to incorporate a company and execute the Articles of Incorporation in accordance with Panama legislation: 

• The company objects
• Its share capital/number of shares
• The corporation may issue its share certificates to bearer or in certificate form
• The names and addresses of the directors
• Panama Corporations must have a President, Treasurer and a Secretary and an individual may hold more than one of these positions

Documents required

In order for us to incorporate an offshore company in Panama for you, we will need you to send us the following:

• The name of the company
• Name and address of the directors
• Name and address of the shareholders 

Incorporation process

After we have received the name of your company, approval of the company name can be obtained within a few hours. We will then submit the Memorandum and Articles of Association of the company to the Registrar, a certificate of incorporation will be issued and your new company will then have been incorporated. It usually takes two days for a company to be fully incorporated. 

Company name

The names of all corporations in Panama must end in Corporation, Incorporated, Sociedad Anónima or the abbreviations Corp, Inc or SA. They cannot use the suffix Limited or Ltd. The name may be expressed in any language. We can reserve your company name for up to 10 days. 

Company law requirements

Under Panama's Corporation Law, it is possible for a company to only be owned by one person. However, the Law requires a minimum of three officers (a president, a treasurer, and a secretary) and three directors. However, one person may hold two or more offices. It is not necessary for the directors or officers to be Panamanian nominees or shareholders.

Directors

Both corporations and individuals may act as directors and the minimum number of directors is three. They may be of any nationality and do not need to be residents of Panama. Panamanian companies are also required to appoint a minimum of three officers - president, secretary and treasurer who may also be the directors. 

Shareholders

The company must have a minimum of one shareholder and he/she can be of any nationality and may reside anywhere. The name of the shareholder does not need to be registered in the Panamanian Public Registry, thus ensuring complete confidentiality. A Panamanian corporation can either have registered shares or bearer shares. 

Language of Legislation and Corporate Documents

Spanish together with a certified English translation 

Registered Office

A registered office must be maintained in Panama at the address of the Registered Agent. 

Company Secretary

A company secretary must be appointed, who may be an individual or a company. The company secretary can be of any nationality and does not need to be a resident of Panama. 

Panama companies take just 2 days to register once we have all of the necessary information from you.