Panama Corporations are known globally as an investment tool or a vehicle used for tax planning. Panama Corporations have lots of benefits. Panamanian Corporations are governed by legislation passes in 1927. Thousands of corporations have been incorporated since the legislation was passed. A very well known offshore jurisdiction the Republic of Panama has decades of experience incorporating corporations. The Corporation laws of Panama served as an archetype for many offshore jurisdictions. The Republic of Panama is recognized as the international business center of Central America.
Unlike companies registered in many offshore jurisdictions a Panama corporation has no restrictions as to here its business activities can be conducted. A Panama corporation can conduct business both locally (onshore) and offshore. A Panamanian corporation is recognized worldwide and therefore can conduct it operation in other countries. Panama corporations are very good means of asset protection. A corporation can own stock, bearer shares, art and any other type of asset which is considered valuable. Frequently used as a vehicle to reduce tax liabilities Panama corporations pay no local taxes (corporate taxes, estate taxes, capital gains taxes or income tax) on capital gained outside of the jurisdiction. Panama Corporations only pay an annual fee to the Government of the Republic of Panama.
According to law 32 of February, 1927 at least three directors are needed when registering a corporation. These persons will serve as officers of the company, the treasurer, the president and the secretary. These persons can be of any nationality and their names and addresses must be listed in the articles of the incorporation of the corporation. Panama registered agent provides nominee director services since the names of directors are kept in the public registry. Two subscribers must sign the articles of incorporation. The services of subscribers are also provided by the registered agent. Incorporation of a company in Panama can only be done through a registered agent in the Republic of Panama and is mainly provided by lawyers and law offices.
Panama Corporations have the advantage of holding shareholders meetings anywhere in the world and at any time convenient to the shareholders. Although the corporations are not obligated by any law to keep them, the time and place of meetings can be cited in the by-laws of the corporation. Meetings can also be held using any modern form of communication. Corporations have no obligations to present its financial records to anyone outside of the company. Financial records can be kept anywhere in the world.
Panamanian Corporations issue bearer shares in different classes. These shares can have different rights and restrictions assigned to them. Voting rights and other privileges are designated to shares and are laid down in the articles of incorporation, more specifically in the by-laws of the company. There is no minimum corporate capital needed to incorporate a Panamanian Corporation. Another advantage of Panamanian Corporations worth mentioning is that in Panama privacy and confidentiality is given to the rightful owners of a corporation. The names of the owners of corporations are not public record.
Panama Corporations are very affordable to incorporate. The incorporation process is fairly quick and can take between 1- 7 days. There is no need to travel to Panama to incorporate a corporation as there are many reliable and professional registered agents to employ.