Panama Offshore Company
Panama’s economy is based on heavily on its banking and commerce. The very successful offshore sector in Panama continues to drives the economy. The country regarded as a thriving and growing international financial center, and most major international banks have branches or offices in Panama. Interestingly, this Spanish country’s main currency is the US dollar, and there are no exchange controls on movement of currency. Banking is one of the main “offshore” activities in Panama.
Panama has what is coined, territorial taxation, whereby only income earned locally is taxed, and all other income is 100% tax-free. Moreover, while Panama has no offshore legislation per se, the country’s tax regimes combined with flexible Panama company formation, the country continues to attract investors to incorporate Panama companies, more formally known as Panama corporations that are used on an international level for all types of businesses. The banking sector in Panama is of particular interest to many business investors and private individual, due to is history of solid banking law, practices and successes, further, the fact that many well known international banks and corporations, well over 50, choose to have Panama as a main locations, is evidence enough of the country’s stable and viable economy. This Panama Corporation also known as the Panama non-resident corporation or the non-resident company. While there are many types of Panama companies that can be formed for local and international uses, the Panama corporation (Sociedad Anonima) is in fact the number one choice in Panama companies used for internationals business, offshore banking, trade and offshore purposes. This type of Panama company, the Panama Corporation is the ideal “offshore” company In addition to its international popularity, the flexible corporate structure of the Panama corporations is a feature that makes the Panama Corporation so attractive. Though two subscribers are required for incorporation, thereafter, only one shareholder is needed. The minimum incorporating requirements allow for registered or bearer shares, with or without par value. If bearer shares are issued, the local registered agent must hold the bearer share certificate in safekeeping. There no set minimum capital values. Panama corporation incorporations require a minimum of three directors. All Panamanian corporations must assign a registered Panamanian agent, whose name will be listed in the Articles. Other than that, there are no other major requirements of auditing, record keeping or filing needed, unless the Panama Corporation merges with another company or is solvent.
Generally, two locally appointed person act as the subscribers for the Panama corporations, and while three directors are needed, Panama corporation legislation allows for the use of nominee directors, so three nominee directors can be appointed in such a case that the beneficial owner does wishes to remain anonymous.
The president, the treasurer and secretary are the three corporate officers of Panama corporations that must be assigned, and individuals or corporate entities can hold these positions for Panamanian corporations
Panama corporations are formed under the Law No. 32 of 1927, with two subscribers. The offshore companies formed in many other jurisdiction are models on this very law, in which its highly functional, yet flexible structures offers its investors privacy and the ability to conduct legitimate international activities of business and trade. The incorporation process for Panama corporations (SA) takes between 4-6 days.