Panama

 We will always provide you a COMPLETE set of documents
With us, there are NO HIDDEN FEES !

Services Available in Panama: Panama Corporations Private Interests Foundations (read why we use them instead of trusts) Trusts Bank accounts in Panama Why Panama ? Read here more details about Panama

 

Check here our special offer for Complete offshore packages

 

Panama Offshore Corporations.
Total Fees to establish a Panama Offshore Company: $850
 SPECIAL OFFER: $499:

We always deliver complete packages with full set of documents:

• Notarial and registration fees

• Letter of resignation of the subscribers of the social charter

• Nominee directors
  (If this service is required, there will be no charge for the first year)

• Notarized Power Of Attorney

• Certified translation to English of the Articles of Incorporation and the letters of resignation

• Up to two (2) blank share certificates
  Further details on Panama Companies here.

• Notarial and registration fees

• Certified translation to English of the Foundational Charter

• Notarized Power of Attorney

• Three (3) nominee foundation council members (If this service is required, there will no charge for the first year). If you provide directors, we'll need three different natural persons to act as directors.
  Further details on Foundations

Optional services for companies or foundations:

Certificate of Incorporation with Apostille US$150
Courier  delivery: $100
Certificate of good standing (after first year of existence)  US$150.
Nominee services US$300 p.a.
Mail Forwarding:  US$300 p.a. + $50 deposit  
Bank account: US$500.
Bank Nominee Signatory for full privacy protection. We charge only US$1,000 /year.

Annual maintenance fees after first year:
  Registered Office/Agent: $300 p.a. 
  Government Licence: $350 p.a. (increased from $250 in March 2005).
(plus fees for nominee directors and shareholders if supplied by us)

Incorporation will take between 6 to 10 working days after receipt of payment, depending on the work load at the Panama registry. We also keep ready-made companies in Panama, for immediate delivery.
 

With a foundation you can open a bank account, transfer all the assets to the foundation, etc.
The only limitation is that you cannot use a foundation as a business.

Sample of incorporation documents available here
(you'll need adobe acrobat reader to view the file.)

Other Fees:
Additional Share Certificates: $10 each

Please check here complete details about foundations:
(you'll need adobe acrobat reader to view the file.)

For your convenience, we have included a Cost Calculator in the Panama order form:

Standard authorized capital is just in paper and there is no timeframe specified in the law for the payment of the capital of the company, it is basically left to he shareholders to decide this.

Assets that are transferred to the company on behalf of a shareholder in order to pay for his shares are evaluated or should be evaluated by a professional that will give the asset a value.

If you want to incorporate a company with an authorized capital of $500.000 the incorporation costs increases with $400 and with $800 for a capital of $1 Million,

Please be advised that Panama has enacted Law No. 2 of 2011, which contains new regulations for the Registered Agent as it relates to "Know Your Client Policies". This Law has entered into effect on February 2, 2011.

This new Law requires that all Registered Agents operating in the Republic of Panama, keep and maintain updated information pertaining to its clients in order to properly identify them. The new Law further requires that the Registered Agent keeps information pertaining to the identity, address, phone numbers (if any), e-mail (if any) and in general any information pertaining to the identity and location of the holders of Bearer Shares in Panamanian Companies.

We must collect the following information:

1. Complete name
2. Residential address
3. Mailing address if different from the residential address
4. Phone number
5. Mobile number, if any
6. Fax, if any
7. E-mail address, if any
8. Profession
9. Current employment
10. Passport copy
11. A signed statement explaining the use that will be given to the company. This information will be required for each entity the End Client incorporates.
12. Reference letter from a Bank, Lawyer, Accountant or other professional
13. Business reference letter, if possible to obtain.
 

---

We are pleased to provide a summary of the salient features of companies incorporated in Panama.

I. Panama Corporations

Basically, the formation and operation of corporations ("Sociedades Anónimas") are matters governed by Law Number 32 of 1927.

Among the interesting features of Panamanian Corporations, we can find the following:

1. Panamanian Companies can be incorporated without regards to the nationality of its directors and shareholders.
2. Income generated by a Panamanian Corporation outside of the Panamanian Territory is tax exempted.
3. There is no need to file any financial reports or tax returns to the Panamanian authorities, if the company does not operate in Panama.
4. Companies may act as directors, officers and corporate liquidators.
5. There is no need to hold annual meetings of Directors or Shareholders in Panama.
6. Directors and Shareholders may attend to the meetings personally, by proxy, by phone or by any other electronic means.
7. Shares may be issued to the bearer or registered. In any event, the name of the shareholder is not disclosed to the Public Registry.
8. A low Annual Franchise Tax of US$.150.00 has to be paid annually and within the first three months after incorporation. If this requirement is not met then the Government charges the corporation a surcharge of US$.30.00
9. There are no restrictions for the objects of a Panamanian Corporation, as long as they are not considered illegal by the authorities.
10. The time of incorporation is around two to three working days.
    

The following is needed in order to start the incorporation process:

1. Name desired for the Corporation to check on its availability. Please provide us with three names in order of priority. Please note that you can use any name you want as long as you include one of the following words: Inc, S.A. or Corp. The use of words suggesting that the company is engaged in banking, insurance or trust activities is prohibited.
2. Initial patrimony if other than the standard of U.S.$10,000.00. If other than the standard capital please include US$.20.00 extra in payment; (this amount does NOT need to be ever deposited . You don't need to have such an amount to open a company or start a foundation)
    
3. Names and addresses of the members of the Board of Directors, which will be no less than three (3) members. If you want us to provide Nominee Directors please inform us clearly in your order.
4. Domicile of the Corporation, if other than Panama;
5. Duration, if other than perpetual;
6. Payment.

Annual fees, penalties, fines and restrictions:
Law Number 6 of February 2 of 2005 published on the Official Gazette of the National Government of the Republic of Panama, modifies Article 318-A of the Fiscal Code of the Republic of Panama. The Article establishes the following:
* Companies and foundations that do not pay the Government Fees within their corresponding period (January-June or July-December) will incur in a penalty of $50
* Companies and foundations that do not pay the Government Fee within in two consecutive or alternate periods will not only incur in a penalty of $50, but also a fine of $300.
* All companies and foundations that have pending Government Fees, penalties and/or fines will not be able to register resolutions, acts or contracts and will not be able to obtain certificates of incorporation or certificates of existence.
* Any company and foundation that has not paid the Government Fee, penalties and/or fines in 10 consecutive periods will be deleted from the Public Registry and considered as a Dissolved entity for all the legal effects.
 

Taxation:
A person or entity with foreign sourced income will immediately escape the obligation of submitting a tax return every year and thus the obligation of paying income tax in Panama.  

According to Paragraph 2 of Article 694 of Panama Fiscal Code, The income derived from the following activities is not considered from Panamanian source:

 

• Invoice, from an office established in Panama the sale of merchandises or products for a higher amount of that for which such merchandises or products have been invoiced against the office established in Panama, always that such merchandises or products only move outside.
• Manage, from an office established in Panama, transactions that perfect, consume or have effects abroad.
• Distribute dividends or participations of juridical persons, when such dividends or participations derive from incomes that are not produced within the territory of the Republic of Panama, including those incomes derived from the activities mentioned in literals a and b of this paragraph.

up

II. Private Interests Foundations

In an effort to provide additional opportunities to the Offshore Community Law 25 of 1995 was created. Said Law contains the procedures and requirements for the creation of Private Interest Foundations.

Private Interest Foundations may be used as tax and estate planning device with the following advantages:

1. They provide a fiduciary structure for the orderly transfer and disposition of assets to beneficiaries upon the death of the Founder, keeping control of the assets during lifetime;

2. They may be established to have effects from the date of their constitution or after the death of the Founder;

3. According to Law 25 of 1995, inheritance laws that apply in the domicile of the Founder or the Beneficiaries, shall not be effective against the Foundations assets nor may these laws affect the validity or performance of the Foundations objectives;

4. Foundations are established to carry the specifics goals set out in the Foundation Charter and may additionally undertake sporadic commercial activities, exercise rights pertaining to their holdings, own property, contract obligations and take part in administrative or judicial proceedings.

5. A Private Interest Foundation should be established with a patrimony destined to fulfil its objectives, which shall be no less than US$10,000.00. Said patrimony may be increased by additional contributions of the Founder or third parties; (this amount does NOT need to be ever deposited . You don't need to have such an amount to open a company or start a foundation)

6. The assets of the Foundation become legally independent and do not form a part of the private estate of the Founder. Such assets are not seizable and may not be subject to any confiscatory action or measure, unless such action or measure pertains to obligations incurred or damages arising from the fulfilment of the Foundations objectives;
   Notwithstanding the creditors of the Founder or of a third party shall have the right to contest the contribution or transfer of assets to a foundation when such transfer constitutes an act in fraud of the creditors. The rights and actions of such creditors shall lapse at the expiration of three (3) years, counted from the date of the contribution or transfer of the assets to the foundation.

7. According to article 27 of Law 25 of 1995, Private Interest Foundations are except from payment of any taxes, contributions, duties, liens or assessments of any kind arising from the acts of constitution, amendment or extinction of the same, as well as acts of transfer or encumbrance of the Foundations assets and the income arising thereof, when related to:

   1. Assets localized abroad;

   2. Money deposited by natural or juridical persons whose income does not derive from a Panamanian source is not taxable in Panama for any reason;

   3. Shares or securities of any kind issued by corporations which income is not derived from a Panama source, or which are not taxable for any reason, even when such shares or securities are deposited in the Republic of Panama;

The Foundation Charter shall be executed by the Founder by means of a private document, in which case it should be authenticated by a Notary Public, or by means of a public document directly before a Notary Public.

The transfer of unmovable property, titles, certificates of deposits, assets, funds, securities or shares carried out by reason of the fulfilment of the objectives of the foundation or the termination of the same, in favour of relatives within the first degree of consanguinity or the spouse of the Founder shall also be exempted from all taxes.

In order for us to provide services in the constitution and management of Private Interest Foundations, the following information will be necessary:

1. Name desired for the Foundation to check on its availability. The word Foundation must be included in the name, for example: The Clear Water Foundation, John Doe Foundation for the Children, etc;
2. Initial patrimony if other by the standard of U.S.$10,000.00; (this amount does NOT need to be ever deposited . You don't need to have such an amount to open a company or start a foundation)
3. Names and addresses of the members of the Foundation Council, which will be no
   less than three (3) members (natural persons), unless a juridical person is appointed, in which case a minimum of one member is required. We may provide nominees for these positions;
4. Domicile of the Foundation, if other than Panama;
5. Duration, if other than limited;
6. Name of the protector if required.

If required, we can provide standard Regulations with blank spaces to name beneficiaries for an additional fee of US$100

up

III. Mail Forwarding
We can provide all our clients, along with a Corporation or Foundation a P.O. Box and a registered office in Panama where they can receive bank account statements, mail correspondence from clients and courier packages.

The corporation or foundation mail will be forwarded to you per your instructions, or it may remain at our offices in safe-custody.

Courier and post mail expenses will be billed to the client.

Our fee for mail forwarding service is US$300 per year.

up

Panama Corporations Private Interests Foundations Trusts Why Panama ? Read here more details about Panama

---

For your convenience, we have included a Cost Calculator in the Panama order form:

---

FIND/BUY RELATED BOOKS!

Please go to our Uses of offshore Companies Page where you will find interesting information on the benefits of using offshore companies and trusts for business and personal use, links to information on other locations and details of our products and services.