Panamanian Corporation
The Republic of Panama is a popular jurisdiction in the world for all types of business activities and is recognized as the best country for the formation of a corporate business structure. The Corporation – Sociedad Anónima (SA) is one of the most common types of companies in Panama. This form of the company offers many advantages, in terms of limited liability (limited to the level of contribution) and regulated access to capital.
The SA is often the legal form of company chosen by large businesses, but it can also be used, as the shares in this type of company can be bearer shares and are therefore more easily transferable.
Registration conditions
The founder must agree with a law firm in Panama or with a private (licensed) attorney. The attorney will be the official legal entity of the company authorized to represent the company in the government of Panama. Shareholders of the company must obtain an individual taxpayer number. Founder must create company management rules – company charter and signing of this main corporate document. It is necessary to obtain the appropriate license for the company (according to the business profile) for the possibility of conducting commercial activities. Each company must Open a corporate bank account in a Panama bank (the company account can be either Panamanian or foreign).
Get started
Register a corporation in Panama with our professional assistance. We are experts in company registration and formation, bank account opening, and doing business in Panama.
Timeline
The presence of the founder is not required when registering a Panamanian company. The registration procedure can be carried out based on a power of attorney provided by the founder of a local law firm. The company can be registered within 5-7 business days. Taking into account opening a corporate bank account in Panama and obtaining the necessary licenses to allow the company to operate locally, the term of the registration process can take 6-7 weeks.
Fees
Registration of an offshore company in Panama is possible in the form of a corporation or limited liability company and is accompanied only by the payment of a one-time state fee of $ 250. The fee is paid in the same amount for the second and subsequent years of the company’s existence.
Compulsory regulation
- A foreigner can own 100% of the shares of a Panamanian corporation. There are no restrictions on the founder’s citizenship and residency requirements;
- High confidentiality of the name of the beneficiary and shareholders of the company. Nominee directors can be used by the company officially;
- The minimum number of shareholders in the company is 1 (one) person (natural or legal);
- There are no requirements for the size of the company’s authorized capital;
- Lack of government control over corporate capital;
- The company must have a legal address in the country;
- Appointment of a registered company agent (official legal representative) is required;
- Foreign words may be used in the title, but the following words or their abbreviations must be used: Sociedad Anónima (SA), Corporation (Corp.), or Incorporation (Inc.).
Documents
You should provide the list of the following documents:
- Passport
- Proof of address
- Legal address approval
- Name reservation application
- Articles of Organization
Consultation about company registration
Our specialists are the best on the market – they have vast experience in this field of activity. We also provide a consultation service for the opening of JS company in Panama. We will talk about the possible risks and benefits of opening a JSC. We will also make sure about taxes, fees, and opening a bank account. We will provide up-to-date information on any of your questions.
Accountancy
Companies in Panama are required to maintain accounting records and prepare annual financial statements that include balance, report about incomes and material losses, explanation of reporting.
Taxes
The country of Panama does not belong to the classic "offshore" jurisdictions, since taxes are levied on a territorial basis, that is, only income received from a source in Panama is taxed.
Bank account
To open a main corporate account for your company, you will need to visit a bank branch in Panama. At the same time, the country's legislation does not require the company to have a Panamanian bank account, since an account for a corporation can be opened in any selected country. A corporate bank account needs for the main business of the company, for internal expenses, payment for services, and providing net income for private entrepreneurs.
Other types of companies
If you feel like Corporation does not fit your needs, click the button below and you will see other legal forms like Limited Liability Company, Holding Company, Branch office and more.
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