Panama Company Establishment

Panama Company Advantages

Panama, regional taxation system, strong privacy protections and low maintenance costs is a prominent location for international investors who want to establish offshore companies. SA and SRL with two popular types of companies, available for fast-established accession, international income in Panama tax exemption. Advanced financial infrastructure, strict privacy laws and flexible corporate governance thanks to its rules, it is an ideal place for trading, e-commerce, asset management and global operations.

• Only incommendividual incomes are taxed. Out-of- Panaman income is tax-free.
• Many such as income tax, capital gain tax, dividend tax, withholding and stamp tax tax exemption.
• Only companies that earn non-Bag revenue are exempt from most reporting obligations.
• The shareholders are invisible to the public record. It is possible to use the surrogate director.
• The company’s establishment process usually takes 3-5 working days, and physically does not need to go to Panama.
• Annual government fees and representative fees are low.
• There is no minimum capital requirement.
• Annual general assembly meetings are not mandatory. Meetings can be held at any place or can be arranged by proxy.
• Electronic signature can be used in official transactions.

Panama Company Types

Limited Liability Company (Sociedad de Responsabilidad Limitada, S.R.L.) ‍ A commonly preferred for small and medium-sized companies in Panama structure. 2 to 5 founders are sufficient for establishment. Members are solely as responsible as the capital they put in. It offers flexibility in management structure and profit distribution. Members personal due to the company's debts their existence is not at risk. The capital can be determined in the desired currency. Sociedad Anonymous, S.A.) Can be installed with at least 3, 50 at most and allows the stock to issue. Investors are only as responsible as the capital they put in, personal assets are protected. International Business Companies (IBC) These buildings are offshore It is not taxed in Panama. Generally international trade, asset management and financial privacy is preferred for the purpose of providing. Shareholders can be from any country in the world, managers can be a real or legal person. It is not obligatory to disclose financial information to the public.

Panama Company Establishment Process

Investors can set up companies under different structures in Panama. Mostly for offshore activities preferred models Corporation and Limited Liability Company. Attention during company registration The main requirements to be found are: The chosen name must be unique and contain an abbreviation stating the type of legal organization (e.g. Corp., Inc. or S.A.). At least three managers must be appointed. These people may be real or legal. All shares of the company may be owned by foreigners. The founder's nationality or Panama residence is not obligatory. The builder does not need to go to Panama, and transactions can be completed remotely. At least one shareholder is enough. The shareholder may be real or legal. There is no minimum capital requirement. Standard authorized capital is usually set at $10.000 and this the amount does not necessarily need to be deposited. During the establishment phase, a one-time state tuition is paid. Also the company regularly every year annual mortar is obliged to pay.

Panama Company Structure

The responsibility of shareholders in companies established in Panama, with their share shares only limited. Companies can be established with at least one shareholder and this person is real or legal, domestic or foreign maybe. The shareholder's information is not public. The minimum capital is $10.000 and this amount does not need to be paid; written and nominal value to the owner shares are also allowed, but such shares must be fully paid when issued. For the management of the company, at least three executives must be appointed: the president, the secretary and the financial affairs officer. These individuals may be real or legal persons and are registered in the public record. Assigning a representative manager is possible. In addition, it is imperative to appoint a company secretary, and this task is also by an administrator can be undertaken. All companies must have a registered address and a local representative in Panama. Annually General board meetings are not mandatory, but if done, anywhere in the world and can be arranged by proxy.

Panama Tax System

If a company is established under Panama law or managed by government and control in Panama He is considered a full taxpayer in Panama. But both built-in and non-resident companies only Panama taxed on the incomes of origin. All companies are obliged to pay a fixed $300 franchise tax per year. Companies that generate offshore income and do not receive Operations Notice, often many reporting exempt from liability. If a Panama company operates outside Panama, income tax, capital gain tax, all local, including dividend tax and stamp tax on company shares and other asset transfers tax exemption.