Panama Company Formation
A country situated at the American Continent centre with Costa Rica at its north and Colombia to its south is globally known as Republic of Panama. Panama has the growing banking and insurance market. There is neither restriction on the investment by foreign nor on the exchange control in Panama. Panama has the commercial secrecy law and a well-established professional infrastructure, and on account of this Panama is one of world’s oldest offshore centres. Panama has the ships and world’s principal yacht registration because of having the tax friendly environment of investment and established centres of offshore financial service.
Panama is the preferred vehicle for foreign investment because provisions of Panama’s corporate law enabled it to enjoy this honour. Panama’s law imposes minimum reporting requirements for the companies and thus the incorporation procedures are quite simple and time efficient. Corporate financing and operation in Panama are quite feasible and cost-effective because of having lower government fees and no currency control linked with it. If bearer shares are to be issued then it should be make sure that they must be fully paid.
Requirements for Incorporation
There are certain requirements to incorporate a company in Panama, details of which is given below:
There is a minimum requirement of three directors and none of the appointed directors need to be the resident of Panama. Corporate directors are allowed to be appointed. There is no requirement to hold director’s meeting but public director’s register are required to be maintain. Even if meetings are needed to be held then there is no restriction on the location of the meetings. After incorporation, there is a requirement of only one shareholder.
There is minimum requirement of one secretary and none of the appointed secretaries need to be the resident of Panama. Corporate secretaries are allowed to be appointed. There is no requirement for the secretary to hold any professional qualification.
There is a minimum requirement of two shareholder in order to incorporate a company in Panama. Corporate shareholders are allowed to be appointed. There is neither the requirement to maintain and keep public shares register nor par value of shares are permitted. Authorised share capital is usually 10,000 shares with value of USD 100 each. It is allowed to have bearer shares.
Please refer to fee schedule section for proper guidance on incorporation fee. Generally, incorporation fee includes:
Once you get incorporated, this is what you’ll get:
It generally takes 1-2 weeks to incorporate a company in Panama.
Offshore Bank Account
For the offshore bank account please see our fee schedule section.
A registered agent for the company incorporation is required. There is no need to declare beneficial ownership of the shares to authorities, where all or some shareholders are nominees. In addition to this, annual return of the company is also required.