Panama Corporation Formation


Panama Company Formation

Republic of Panama is located in the Central America Continent having Costa Rica to its north and Colombia to its south. Banking and insurance sector is flourishing in Panama. Generally, there is neither any exchange control nor any prohibition on the foreign investment. Panama has not gained title of world’s oldest offshore centre out of nowhere, instead this is due to the reason that there exist well developed professional infrastructure and proper provisions of company secrecy law. Panama is a tax friendly country and has a well-established offshore financial service centre and this is the reason that, Panama has the world’s principal yacht and ships registration.

Panama’s corporate law made it a preferred place of investment for foreign investors. Provisions of Panama’s company law puts minimum reporting requirements on the companies. The incorporation procedures in the Panama are very simple and time efficient. Government fees are low and no currency control which makes company’s operations very favourable and easy in Panama. Bearer shares, if issued need to be paid fully.

Incorporation Requirements

Following are the requirements for company incorporation in Panama:

Directors

  • There is a requirement of minimum of three directors and it’s not necessary for the directors to be resident or nationals of Panama.
  • It is allowed to appoint corporate directors.
  • No need for director’s meeting.
  • There is the need to maintain public director’s register.
  • Meetings can take place at any location.
  • Only one shareholder needed after incorporation.

Secretaries

  • There is a requirement of minimum one secretary and it’s not necessary for the secretaries to be resident or nationals of Panama.
  • It is allowed to appoint corporate secretaries.
  • No professional qualification requirement for the secretary.

Shareholders

  • There is a requirement of minimum two shareholders.
  • It is allowed to appoint corporate shareholders.
  • No need for maintaining public shares register.
  • Par values of shares are not permitted.
  • Share capital is authorised to be of 10,000 shares with the value of each share of USD 100.
  • Shareholders are allowed to retain or possess bearer shares.

Incorporation Fee

Kindly have a look at the section of fee schedule for description of incorporation fee. However here is the summary of the fees structure:

  • Fees of government.
  • Fees of local secretary.
  • Fees of local agency.
  • Fees of registered office.
  • Fees of our service.

Once your company incorporates, you will get; certificate of incorporation along with M & A five copies, and original formation documents and minutes.

Incorporation Time

It takes 1 to 2 weeks for company incorporation in Panama.

Offshore Bank Account

For the updated details on the facility of offshore bank account, please refer to the section of fee schedule.

Miscellaneous

  • Company should have registered agent.
  • If all shareholders or some are nominee, then there is no need to declare shares ultimate beneficial ownership to authorities.
  • Annual returns of the company must be demonstrated.