Panama

Predominant features and advantages of Panama Corporation:

  • Panamanian International Business Corporations (IBC's) and Private Interest Foundations do not pay tax on any of their income.
  • Panama does not impose any reporting requirements for non-resident Panamanian corporations.
  • No minimum capital requirements. A corporation may operate without any issued share capital (The standard capitalization for a Panama Corporation is US$10,000.00).
  • Par and Non-par Value Shares, voting and non-voting shares, as well as various other categories and classes of shares are allowed.
  • Reduction or elimination of income taxes.
  • No inheritance, succession or gift taxes.
  • No annual tax return requirements.
  • Panama has no currency exchange controls or currency restrictions on monetary remittances abroad, including dividends, interests and royalties.
  • No taxes on capital (stocks, bonds and other investments) held by Panamanian corporations.
  • No accounts or annual summaries have to be filed with the Government, with the exception of the annual franchise tax filed by the registered agent.
  • No limitations on the amount of import/export.
  • All Panamanian companies must appoint a registered agent, but there is no requirement for a local registered office. This function usually is performed by a local attorney.
  • Information about owners of the company remains confidential and is not kept on public record.
  • There must be at least three directors, no requirements as to the number of shareholders, and no nationality restrictions. The names and addresses of these directors is part of the public record and therefore nominee directors are usually appointed at incorporation.
  • A Stock Register must be kept by law. The register contains the names, place of domicile and date of acquisition of shareholders, other than the holders of Bearer Shares. This register may be held anywhere in the world.
  • The name of the corporation can be expressed in any language and shall include a word, phrase or abbreviation to indicate that it is a corporation as distinguished from a natural person or partnership. The most common endings include S.A, Corp., Incorporated, Inc.
  • The laws of the Republic of Panama only permit the submissions of accounting records, files, correspondence or other documents to foreign authorities with the express permission of the Courts of Panama. Information sharing treaties are limited to drug-related offences. All other revelations are prohibited and may result in criminal prosecution.
  • Double Taxation Treaties with Barbados, Ireland, Luxemburg, Netherlands.
  • It is not necessary for the interested parties to be present in Panama for the purpose of establishing a corporation.
  • Corporations conducting business outside of Panama do not require a commercial license for offshore business activities.
  • Local Government concessions, subsidies and support.

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