- Company incorporation
- Private Foundations
Being a global financial center, the Republic of Panama is also one of the most attractive jurisdictions for the registration of companies, which is explained in the first place by the absence of taxation of income earned outside the country and a warranty of confidentiality of information received by the foreign investors. Joint stock companies registered in Panama receive special preferences.
- Absence of financial reports on profits earned outside the country;
- The absence of restrictions on the conduct of trade or investment activities outside of Panama;
- The simplest requirements of a registered company, including the absence of capital requirements of the company, the currency in which it is defined, and the possibility of not paying it at the time of registration;
- Lack of compliance requirements of the authorized capital of the company assets ( with a minimum authorized capital of 10 million U. S. dollars joint stock company may hold assets in excess of this amount at times);
- Any number of shareholders (including foreign nationals) and the possibility of issuing shares of any type without the need for registration;
- The right to assemble and the Board of Directors meeting of shareholders in any country in the world;
- The possibility of opening an unlimited number of offices abroad.
As it has been already noted, the key advantage of Panama as a tax-free jurisdiction is taxation on a territorial basis. Company, operating outside the Republic of Panama, are obliged to pay an annual flat tax only (U. S. $250 for the first year and $300 for each year thereafter). Companies registered in the first half of the year have to pay tax up to June 30th of the next year; companies registered in the second half have to pay until December 31st of the next year. If there is a delay in payments, a company may be fined ($ 50 per year, and for non-payment for 2 consecutive years the fine is $ 300) and later on eliminated.
Midland Counselors offers its assistance in registration and maintenance of the companies in the Republic of Panama, including nominee service, providing the highest level of confidentiality and privacy of personal data of beneficial owners of the companies. Initial information required for the registration of a company, can be given via phone or email.
To register a new company one must
- Come up with an original name (in any language, using Latin alphabet and reduction Corp. / Inc. / S. A. at the end);
- Set goals of its creation;
- Determine size of the share capital, number and type of issued shares (with a par value or without);
- Appoint three directors and specify their addresses (they may be nationals of any country or entity in any jurisdiction; appointment of nominal directors is also possible);
- Determine address of the company (in Panama or abroad);
- Establish the period of time for which it is created (can be perpetual).
This information should be included in the company’s charter. The charter should also have names and addresses of the persons signing this document.
For the establishment of a joint stock company it is sufficient to have coordinated decision of two individuals (citizens of Panama or foreigners) and in the presence of a notary to sign the memorandum and then pass it to the office of the Public Register of Panama.
It takes 2-3 days to register a company in Panama (excluding time required for apostillation and delivery of originals from Public Register). If necessary, we can offer you a ready company that by its structure fits your business most.
Companies registered in Panama must pay annual renewal. In addition to the single tax payment, this procedure stipulates payment for registered agent service, nominal service (directors and shareholders) in case if such is provided, as well as extension of the legal address, which is available for one year. Company is also required to keep records of the shares in the Register of Shareholders (it can be stored anywhere in the world). When a bearer share is issued, a company must register in the Register of shares information on date of issue, certificate number, their value and compensation paid. Company must appoint a president, a secretary and a treasurer.
In order to cease activities of a company, the majority of shareholders must adopt relevant decision and notarize it. If a company during its existence has never issued share certificates, the company’s founders who signed the memorandum of association must also approve this decision. The fact of dissolution of a joint stock company is registered in the commercial department of the Public Registry of Panama that issues a certificate of dissolution (with a further publication in the national press).
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