The Panama Corporation converts into an offshore company when owned and managed by a foreign national who resides outside Panama and generates all income outside Panama. As such, Panama Corporations are also called Non-resident companies. Panama has been pa popular offshore shelter by virtue of offshore-friendly laws and policies.
Panama Corporation (Panama IBC)
Established under a tax regime that exempts earnings and profits generated internationally, the Panama Corporation has served as the ideal tool for mitigating tax liability.
Such tax free treatment leads to an offshore entity that does not subject its users to any tax on income, profit, estate, inheritance, CGT and dividends.
Panama Corporations have been used since 1927 and are regulated by the Panama Corporation Law. Once incorporated, a series of business ventures can be undertaken, to include:
- Investments in market securities
- Tax, estate and succession planning
- Trade and commerce
- Setting up holding structures
Offshore bank accounts automatically become necessary for offshore operations, increasing capacity for international business and rendering a greater degree of privacy of Panama offshore companies.
Incorporation, Ownership and Administration
Panama offshore companies are owned by shareholders, while administration falls into the hands of the board of directors.
The President, Treasurer and Secretary form the board which consists of 2 to 3 persons.
In the absence of a separate person for the posts of President, Treasurer and Secretary, incorporation occurs with 2 persons where the Secretary is at the same time Treasurer and the President is also Treasurer.
Note : the Secretary and President must at all times be distinct persons.
Standard share capital : US $10,000 is the standard share capital to be issued.
Duration : 4 to 6 days are all that is needed to completely incorporate in Panama.
Meetings : Meetings may be held as frequently as the directors choose to, in or outside Panama.
Record Keeping and Maintenance
Stock Register : Containing names of shareholders in alphabetical order, place of domicile and date on which shares were bought;
Book of Minutes : For recording deliberations and resolutions taken at meetings;
Accounts : Proper records must be prepared and may be kept in any location;
Annual fees: continuing registration of is assured by payment of applicable fees annually.
We do our best to maximize the privacy of Panama Corporations by putting in place a various mechanisms which safeguard the identities of the persons who form the company.
Nominees: Are used instead of the actual members for identity protection, since director names and addresses are filed the Registry for incorporation purposes;
Registered Office : Names and personal data of actual owners are kept at the registered office.
For more details on how your privacy is protected, please contact us.