The Republic of Panama is one of the world’s largest and most established offshore corporate havens. It is second only to Hong Kong, with over 400,000 registered corporations. For years, corporations in Panama have been recognized around the world as an offshore vehicle for International Business and Asset Protection.
Panama’s financial sector provides excellent facilities with most of the world’s leading banks being represented. All business in Panama is conducted in U.S. dollars and English is widely spoken.
The most compelling reasons for forming a Corporation in Panama are:
1. Corporations in Panama offer Asset Protection
A Panama Corporation can protect assets by offering true anonymity of its shareholders. Corporations in Panama are not required by law to file any changes to ownership once their registration is complete.
Panama Companies may issue Registered or Bearer shares, preferred shares and non-voting shares. Regardless, the name of the shareholder is not required to be registered in Panama’s Public Registry. This ensures total anonymity.
Panama bank secrecy laws are some of the strongest in the world. Panama law protects both residents of Panama and foreigners with full confidentiality and privacy. Further, Panama law states both civil and criminal penalties for disclosure. In Panama, even minor infractions of bank laws that pertain to secrecy are met with severe retribution.
2. No Restriction on the Owners of the Corporation in Panama
The Owners, Directors and Officers of a Panama Corporation don’t have to be Panamanian. In fact, the shareholders, directors and officers of a Panama Company may be of any nationality and residents of any country.
3. No Income Tax on Foreign Sourced Income with a Panama Company
A Panama Corp is not subject to income tax in Panama for all income earned outside of Panama. This means full exemption from taxes on any business activity or transaction performed outside of Panama. The law in Panama regards an export as the sale of goods outside the national territory or a sale within the domestic market of certain goods manufactured locally, if they are sold to companies that export 90% or more of their production to foreign markets.
4. No Tax Returns Required for Corporations in Panama
Panama tax returns are not required within Panama for all corporate income earned in other countries by the Panama Corporation. There is no need to file any financial report or Panama tax return in Panama as long as the Panama Company does not operate within Panama. In addition, by Panama Law, corporate funds and offshore profits can be invested anywhere in the world without being taxed.
5. Low Annual Corporate Tax
Panamanian Corporations must pay an annual corporate tax (referred to as Tasa Unica) of $300. Corporations in Panama have both reasonable formation and maintenance fees.
6. Business License is not required to Operate a Panama Corporation Internationally
To conduct business internationally, a non-resident Corporation in Panama does not require a commercial business license.
7. No International Trade Tariffs Imposed on any Panama Company
Traders in Panama are free to import from and export to all friendly countries, regardless of their social-political systems. Trade policy in Panama includes free ports for export/ re-export, Export Processing Zones, and low duties on certain staples that are not produced locally, including specific products for the tourist trade.
8. A Corporation in Panama does not need to hold annual meetings of Directors or Shareholders
Directors and Shareholders of a Panama Corp may attend the meetings personally, by proxy, by phone or by any other electronic means. Shareholders and/or directors of a Panama Company may hold their meetings in any country.
9. No Capital Requirements necessary for a Panama Company
Panama Corporations do not require paid-in capital. In other words, funds do not need to be deposited and held in reserves until the corporation is dissolved.
10. Physical Security in Panama
Panama is not subject to earthquakes & hurricanes as are many Caribbean offshore jurisdictions. Since constant access to your money is critical this is an immense benefit.
BONUS: Corporations in Panama do not get taxed (in Panama) for Inheritance, Succession or Gift Taxes.
How2Panama saves you time and money with helpful e-Book Guides on Panama. How2Panama provides information on "How to" Safely Invest and Live in Panama. For more information please visit us at http://www.How2Panama.com. How2Panama. Your Questions on Panama. Answered.
