|
The privileged geographical position of our country is an attraction to carry out all kind of businesses. Panama has banking infrastructure which makes the country the center of the international business par excellence.
However, this banking infrastructure would not be sufficient if we would not have a solid legal system providing security to its users. This system is based on Law 32 of 1927, the Corporations Law, one of the most clear expression and attraction.
Corporations are regulated by Law 32 of February 26, 1927, which stipulates that the agreement of two or more persons of legal age, of any nationality, even if they are not domiciled in the Republic of Panama, is necessary to incorporate a corporation. Corporations must have a licit purpose and engage in any kind of commercial activity.
Corporate shares may be nominative or to the bearer, and the shareholders may be individuals or a corporation, ether local or foreign, and one or more persons may be holders, but there is no requirement of residence in the Republic of Panama.
Tax benefits
Panamanian corporations only pay taxes for the performance of business within the territory of the Republic of Panama. For any activity carried out abroad, corporations should not pay tax other than the Annual Levy of US$300.00 per year.
Following are some benefits for offshore corporations registered in the Republic of Panama:
- The corporation may only be engaged in a great number of licit activities, and there is no requirement to include them in the bylaws.
- There is no requirement for activities carried out abroad by the Panamanian offshore corporation to file financial, commercial or income tax declarations.
- The Bylaws of the offshore corporation may be prepared in any language, in addition to Spanish.
- Regulations for Panamanian offshore corporations allow meetings of Shareholders or Board of Directors to be held abroad, and also virtually.
- Confidentiality pertaining the stockholders or owners of the offshore corporation, since their names are registered only in the shares registry book.
- It is not required that the offshore corporation capital be deposited in banks, or that the corporate assets be in Panama.
- Shares may be issued Nominative or to the Bearer.
- The flexibility of the Panamanian legislation regarding offshore corporations allows them to become the owners of all kinds of properties or assets, including banking accounts, located in any place in the world, without being declared in Panama.
- Local or foreign individuals may be the owners of a Panamanian offshore corporation.
|
