• 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.
