PanamaPanama is a Republic located in Central America between Costa Rica and Columbia. It is one of the oldest offshore locations, with a long history with offshore ship operations. It received negative publicity regarding its stability during its problems some years ago. Panama is now looking to expand offshore operations again. Spanish is the national language but English is commonly used in international trade and commerce. It has a Spanish civil law foundation, and its company law is based on the US State of Delaware's system. Its currency is the US Dollar.
Offshore Companies:
All Panamanian Companies are incorporated under existing Company law. No special type for this purpose.
Setting up a Panamanian Company:
A Notary creates a Deed for registration at the company registry after review of the proposed company's signed Articles of Incorporation. The company can be incorporated within 1-2 days.
Buying a Panamanian Company:
NACS offers off the shelf companies upon request. Name changes can be accomplished rapidly.
Company name guidelines and restrictions:
The name must be in the Latin alphabet, any name can be chosen provided it is not already in use, it is not obscene, and it does not imply insurance, banking, or governmental related operations or sponsorship. It must end with an approved company designation or abbreviation (Incorporated, Corporation, Sociedad Anonima, etc.). Names implying or conveying an involvement in banking or insurance operations require consent.
Capital Requirements:
No minimum level required.
Local Registered Office Requirements:
A Panamanian Company must always maintain a registered office in Panama, and must appoint and retain a resident as the company's registered agent. NACS provides these services for a fee via its associates.
Annual Company License:
This is acquired at the beginning and must be maintained annually thereafter. The annual license fees vary with the share capital of the company. Annual license fees not paid on time incur penalties.
Director Requirements:
At least three directors must be appointed and maintained (who cannot be corporate directors). There is no residence or nationality requirement.
Shareholder Requirements:
There is a minimum of one shareholder.
Company Secretary Requirements:
A company secretary must be appointed for the IBC: who must be a person, no nationality or residence requirements. NACS normally will perform this function, for a fee.
Share Types Allowed:
Registered or bearer shares are permissible.
Taxation Requirements:
There is no taxation for an IBC's operations, assets, or profits. No tax treaties.
Exchange Controls:
There are no exchange controls.
Reporting Requirements:
No accounts or annual report are required to be filed.
Secrecy:
No explicit secrecy legislation for Panamanian Companies. No disclosure is required of the beneficial owners of an International Company to the authorities.
Annual Tax/Filing Fee:
There is a minimum annual license fee/tax of US$ 150.00