Information on Panamanian Company Formation

If you would like to incorporate an offshore company in an independent offshore jurisdiction, you should consider a Panama corporation, which is also known as Panama Offshore IBC.
 
Major advantages of Panama Company:
  • Exemption from all local taxes, when income received outside of Panama
  • Inexpensive annual support
  • No requirements of a minimum paid up capital
  • No foreign exchange control.
  • Information about shareholders and beneficial owners is not filed with the Public Registry Office and not available to the public
  • Any individual and legal entity may become a shareholder
 
Corporate Name
 
The name of Panama IBC may be in any language and must include one of the following legal endings: Incorporated, Corporation, Sociedad Anonima, Inc., Corp., S.A.
 
The name must be a different from already existing or reserved corporate names in Panama.
 
Office Address and Local Agent
 
Each Panamanian corporation must have Panamanian registered office address and Panamanian agent, who is an attorney or a law firm.
 
Principal office address (business address) of the corporation may be in any country.
 
Shareholders
 
Shares of Panama IBC may be issued to individuals or companies, who are residents of any country.
 
A minimum of one shareholder is required. A minimum of one share of US$100.00 must be issued to that shareholder.
 
Directors and Officers
 
Every Panamanian corporation shall be managed by the Board of Directors. A minimum of three directors is required. Corporate directors are not permitted. All directors must be individuals of full age (at least 18 years old). Residents of any country may be appointed as directors.
 
The Board of Directors appoints officers such as President, Secretary and Treasurer. Officers shall be individuals as well. Officers may be residents of any country. One person may hold more than one officer positions. No officer needs to be a director.
 
Authorized Capital
 
Standard authorized capital is US$ 10,000 divided into 100 registered shares of US$ 100 each. Such capital keeps the incorporation and annual cost of Panama IBV at a minimum level.
 
Authorized capital is the amount, which the company may receive from its shareholders in consideration for the issued shares. For example, if a company has the above authorized capital, it is allowed to issue up to 100 registered shares and receive from its shareholders not less that US$100 for each issued share.
 
Panama Corporation is not required to issue all its shares for the total amount of authorized capital in any mandatory time frames. The company could issue just one share to a single shareholder and remaining shares or any part of them issue any time in the future or not issue at all.
 
All issued shares must be paid up by shareholders. It means, if a company issued one share of US$100.00, the shareholder must pay into his company US$100.00.
 
Taxes
 
If a Panama Corporation conducts its business outside of Panama, it is exempt from all local taxes including income tax, capital gain tax, dividend tax, and stamp duty on transfer of corporate shares, and other property.
 
Annual Fees
 
Each Panama Corporation must pay the annual renewal fee starting from the second year.
 
Public Records
 
Information about shareholders and beneficial owners is not filed with the Public Registry Office and not available to the public.
 
Names and addresses of directors and officers are included in the Articles of Incorporation. Therefore, such information is available to the public.
 
Accounting and Audit Requirements
 
There are no statutory requirements of accounting and audit for Panama offshore companies. It's totally up to the corporate directors, what kind of records they would like to keep.
 
Annual General Meeting
 
Annual meetings are not required. Board of directors may decide to conduct an annual meeting of shareholders. Such meeting shall be held within Panama unless otherwise stated in the Articles of Incorporation or By-Laws.
 
Time Required for Incorporation
 
Panamanian corporations can be incorporated the same or next business day.
 
Additional 8-10 business days are required for preparation of resolutions, share certificates, registers and legalization of corporate documents with Apostille.
 
 
For more information on Panama offshore companies, please contact us at info@multilysis.com.
Office Address: 5 Amathountos street,
Pirilides Building, 4th-5th Floor,
3105 Limassol-Cyprus 51252, 3503