PANAMA CORPORATIONS ADVANTAGES

• Panama does not have tax information exchange agreements with other countries.

• Panama is planning to negotiate Double Tax Treaties to prevent double taxation.

• Panama Corporation Law has not been changed since it became effective in 1927.

• Law number 32 of February 26, 1927 (“Corporation Law”) expresses that two or more persons, of any nationality, even though not domiciled in the Republic of Panama, may form a corporation for any lawful purpose.

• In the practice, two nominee members incorporate the corporation.

• The articles of association is notarized and duly registered in the Public Registry of Panama.

• The Board of Directors must be composed of at least three different (3) members.

• Corporate entities from any jurisdiction, can act as directors.

• The corporation should have at least the following officers: President, Treasurer and Secretary.

• Corporate entities from any jurisdiction, can act as officers (President, Secretary and Treasurer).

• Nominee directors and officers can be appointed.

• Change of directors and officers needs to be filed in the Public Registry of Panama.

• No paid-in capital is required.

• No minimum or maximum capital requirements.

• Corporation can issue shares without nominal value.

• A connection between the paid-in capital and the value of the corporation assets is not required; The par value of the shares does not essentially correspond to the book value of the corporation.

• The shares of the corporation may be issued in nominative form or to the bearer.

• Flexible transfer of shares. Bear shares are transferred by delivery of the certificate. No filling is required in the Public Registry of Panama.

• The name of the shareholders of the corporation is confidential. The name of the shareholder is not public information. • No requirements to disclose ownership. The structure is confidential.

• Ownership may reside in a single individual or corporations and no part of the capital needs to be held by a Panamanian.

• A single person may be the owner of all the shares of the corporation.

• Shareholders, Directors and Officers are not required to be nationals or residents of the Republic of Panama.

• Corporate entities can act as shareholders and directors.

• Neither the Directors nor the officers are required to be shareholders.

• No requirement to hold annual meetings.

• Meetings may be held outside the Republic of Panama.

• Shareholders and Directors may attend meetings personally, by proxy, by phone or any electronic means.

• The corporation may execute in favor of one or more individuals a broad Power-of-Attorney to operate the company.

• The shareholder registry and minutes of the company can be kept in any part of the word.

• There is not restriction of the objects of the Panamanian corporation.

• Panamanian Corporations may conduct legal businesses all around the world.

• Income generated by Panamanian Corporations outside the Panamanian Territory is tax exempted.

• Corporation will only pay taxes on income from profitable activities within the territory of Panama.

• No need to file financial reports or tax returns in Panama if the company does not operate in Panama.

• Panama Corporations have to pay an annual tax of US$300.00.

• Panama corporations can be transferred to any jurisdiction.

• No restrictions on Mergers & Acquisitions.

• Every corporation ought to have a resident agent in the Republic of Panama.

• The resident agent is a Panamanian lawyer or law firm.

• KYC (Know your client) rules needs to be followed by lawyers before incorporating.