The Republic of Panama is different from many of the smaller tax havens as it is a veritable hub of international trade, banking, shipping and air travel, most of it due to the influence of the famous Panama Canal and Panama’s lucky geographic location at the heart of the Americas.
Unlike in traditional tax havens, there is no difference in Panama law between domestic and international companies: there is simply a very beneficial territorial tax regime meaning that income generated outside the country is never taxed and no tax returns need be filed. This benefit applies whether or not the company chooses to maintain a physical presence in Panama.
Offshore Pro Group offers professional incorporation of both Panama corporations and Panama Private Interest Fundations.
Main Advantages of Panama
Independent jurisdiction, politically powerful due to the Canal
Exemption from all local taxes for income generated outside of Panama, even if received in Panamanian banks
Panama companies have no restriction on doing business in Panama
Highly developed financial services industry and professional infrastructure
Excellent airline connections to the Americas and Europe
Currency is US dollar, No Exchange Controls or Restrictions
Conventionally companies are named in English or Spanish, or one company may be registered with separate English and Spanish names. The abbreviations are S.A., Corp. or Inc.
The Registrar also has the option to allow company names in other languages by special permission.
Names implying a connection with the financial services sector or other restricted areas are restricted.
Registered Office Address and Registered Agent
The company must maintain a registered agent in Panama, who must be a practising Panamanian lawyer or a law firm.
A registered office address is also required.
Offshore Pro Group provides these services as part of its standard packages. The first year’s service is included in the incorporation cost.
A minimum of one shareholder is required. Residents of any country, individuals and legal entities may own shares. Shares may also be issued to bearer.
The standard capital for Panama companies is USD 10,000. However this may be varied and the capital may be expressed in any currency.
Should you need a nominee shareholder, Offshore Pro Group can provide this service.
Panama companies require a minimum of three officers, who are typically appointed as President, Secretary and Treasurer respectively. These persons may be individuals or legal persons/corporate entities from anywhere in the world. It is traditional, however, to use Panamanian nominees., since the Company’s Officers are listed on public record and accessible on the Registry’s website. These nominees then issue a Power of Attorney to the beneficial owner.
Annual Fees and Taxes
Each Panama Corporation must pay the annual renewal fee at the latest on the anniversary of incorporation. Penalties are applied automatically for late payments. Our annual fees are listed in the Fee Schedule.
The annual domiciliary fee includes a government fixed tax, plus the fee for the registered agent and registered office services.
Members of the public may inspect the following information on the Panamanian Registry’s website: Company name, name of registered agent, share capital, names of officers and other basic data. It is customary to use nominees to shield the ultimate beneficial owner’s identity.
Accounting and Audit Requirements
There is no audit requirement. Panamanian Corporatiions are required to keep accounts on behalf of their management and shareholders but there is no requirement to file this information anywhere, provided that they do not do local business in Panama.
Speed of Incorporation
Panama Corporations take approximately one week to form. However, please allow a couple of extra days for preparation of resolutions, appointments, share certificates, powers of attorney etc. Apostilles take an additional 1-2 business days.
Our Panama office always maintains a convenient supply of shelf corporations ready for immediate transfer.
BASIC CORPORATION PACKAGE USD 785
– notarized statutes (articles) in Spanish
– registration in public registry, with registration certified by stamps
– registration tax (tasa unica)
– preparation of first minutes
– provision of initial subscribers with resignation letter
– worldwide courier delivery
STANDARD CORPORATION PACKAGE USD 1085
everything from basic package, plus:
– Certificate of Public Register
– Nominee Directors for Panama Company (3 physical persons) – Per year inc simple copies of IDs and utility bills
– Power of attorney
– Certified English or Russian translations
– Preparation of share registers and certificate
APOSTILLE CORPORATION PACKAGE USD 1185
everything from standard package plus:
– Apostilles on statutes + Certificate + translations + POA (4 apostilles total)
Panama Annual Fees
Government Tax (obligatory) USD 300
Registered Agent and Registered Office fee (obligatory) USD 300
Nominee officer fee, total for 3 nominees (optional) USD 300
To request a detailed quote for other services please contact one of our consultants.