Panama Company Formations
It usually takes 2 days to incorporate your Panamanian company and there is no need to visit Panama during the registration process.
All Panamanian corporations must end with the following designations or their abbreviations: Corporation (Corp), Incorporated (Inc) or Sociedad Anónima (SA). This name may be expressed in any language and can be reserved for up to 10 ten days.
Panama Corporation Company Formation
- Reserving Company Name
- Articles of Incorporation
- Notarial registration fees
- Capital registration tax based on authorised capital of US$10,000
- Share Certificates
- Minutes of Board Resolution
- Certificate of Incorporation
- Government fees
- 3 Resident Directors can be supplied
- Nominee Company Secretary
- Nominee Shareholders
- First years franchise fee payable to the government of Panama
- Certified English translation of documents
- All documents and certificates supplied in a professional folder
- Delivery of documents by FedEx / DHL
After you have submitted the name of your Corporation to us, approval of the company name can be obtained within several hours. We then present the Memorandum and Articles of Association of the company to the Registrar, a certificate of incorporation will be issued and your new company is incorporated.
Guide to Incorporating in Panama
- All Panama corporations must end with the suffix Corporation, Incorporated, Sociedad Anónima or the abbreviations Corp, Inc or SA
- Your name may be expressed in any language
- A company name check can be carried out free of charge to see if a required name has already been registered
- We can reserve your company name for up to ten days
Share Capital - Authorised and Issued
Upon incorporation you must select the number of shares your new company will have, along with choosing if they have par or no par value. When doing this the following information must be considered:
- The standard authorised share capital for a Panamanian company is US$10,000
- The share capital gets divided into 100 common voting shares of US $100 or 500 common voting shares at no par value
- The capital may be expressed in any currency
- Share Capital does not have to be paid into a bank account before the incorporation
- The minimum issued capital is one share
- Shares may be of par or no par value
Both corporations and individuals may act as directors and we can supply nominees if required. They may be of any nationality and need not be residents of Panama. Panamanian companies are required to appoint a minimum of three directors/officers - president, secretary and treasurer.
The minimum number of shareholders is one, who may be of any nationality. The name of the shareholder is not required to be registered in the Panamanian Public Registry, providing you with complete confidentiality.
Under Panama's Corporation Law it is possible to have a corporation owned by only one person. The Law requires a minimum of three officers (president, treasurer and secretary) and three directors. However, one person may hold two or more offices. It is not necessary that the directors or officers be Panamanian nominees or shareholders.
A company secretary must be appointed, who may be an individual or a company. The company secretary may be of any nationality and need not be a resident in Panama.
A Panamanian registered office is required for your company. We provide this service.
Companies which do not carry out activities within Panama and do not obtain income from a Panamanian source are only subject to the payment of a fixed annual tax of around US$300. All income generated outside Panama is completely tax exempt.
Features of a Panama Company
- There is no need to hold annual meetings of directors or shareholders
- Members and/or Administrators may hold their meetings in any country and may attend such meetings by proxy
- Panamanian Companies can be incorporated without regards to the nationality of its directors and shareholders
- There is no income tax, if income is produced outside of Panama
- No requirement to file annual returns or financial statements
- No limitations on the maximum number of directors or shareholders
- The company may engage in any type of civil or commercial activities
- Members and administrators may be of any nationality, resident of any country and be either corporate entities or natural persons
- Incorporation documents may be drafted in any language together with a translation into Spanish
- It is not mandatory to present the changes of administrators at the Public Registry
Advantages of Panama Incorporation
Panama has a number of features that make this an asset protection jurisdiction for corporations. We will supply you with:
- Official translation into English of Articles of Incorporation
- Incorporating a corporation takes approximately 24 hours plus two days to be registered at the Panama Registry
- Corporation may be owned by a single person
- The capital of the corporation need not be paid at the time of the incorporation
- The Directors and officers can be any nationality
- The Board of Directors must be composed of at least 3 directors
- Meetings of the Board of a Panama corporation may be held in any country and the directors can attend personally or by proxy
- The meetings of shareholders of the corporation may be held in any country
- The corporation may engage in any lawful business, even if it is not similar to any of the objects of the corporation specified in the articles of incorporation
- Corporations only have to pay Panamanian income tax for income derived from sources within Panama
- The freedom to appoint directors and officers of any nationality and country of residence
- The legal protection afforded for the confidentiality of business and banking transactions
- The tax exemption status provided to offshore companies
The Articles of Incorporation contain the following information:
- Name and domicile of the subscribers of the articles of incorporation
- Name of the corporation
- Purpose or objective of the corporation
- Corporate Capital
- The legal domicile of the corporation is Panama
- Resident Agent
- Duration of the corporation
- Name of the officers
- Name and address of the directors
Company Accounting Records
According with the Law No. 52 of October, 2016, all types of Companies and Private Interest Foundations will be obliged to keep Accounting Records and Support Documentation of their transactions.
The Accounting Records should be kept at the Resident Agent's Office , otherwise, the client have to notify us the office where the accounting records will be kept and the responsible person.
Annual Government Tax
The only tax paid by non-resident offshore Panama Corporations is the flat annual government tax (Tasa Unica).