Panama is known as an offshore services center, mainly as per its fiscal system based on the territory principle. The incorporated companies in Panama, known as the offshore companies or corporations, are the fiscal instruments by excellence and provide, to the investor, a series of advantages linked to the fiscal benefits of Panama.
These are versatile, safe and reliable, and there is a better management by the one who establishes it.
Advantages and Benefits
- The Public Deed may be prepared in another language, additional to Spanish.
- Confidentiality on the recipients, entrepreneurs or owners of the corporation or company, due to the fact that their names are only registered in the share book of the company and not in public records.
- Tax exemptions on the goods, utilities, benefits and profits obtained by a Panamanian offshore company or corporation, when these are obtained or executed out of the territory of the Republic of Panama.
- If activities are executed out of Panama, submission of financial, commercial or tributary declaration is not mandatory.
- The organization is nimble, simple and fast, since individuals of any nationality, local or foreigners, even without residence in Panama, may organize a Panamanian offshore company or corporation, in a period oscillating between 48 and 72 hours.
- The meetings of the Board of Shareholders or Board of Directors are allowed to take place out of Panama, and even virtually.
- The capital of the offshore company or company is not required to be deposited in banks, or the goods to be located in Panama.
- The shares of the offshore companies or corporations in Panama may be issued as Shares to the Bearer or as Nominative Shares.
- One or more persons (natural or legal), national or foreigner, may be owner of the Panamanian offshore company.
- The Board of Directors shall be composed by at least three (3) Directors, being one of these able to occupy more than one position.
- For total confidentiality, having the company nominative directors, the activities of the company or company may be directed through a General Power of Attorney which does not have to be registered or inscribed in the Public Registry of Panama.
- The flexibility of the Panamanian offshore companies or companies allows them to appear as the owner or authorized entity of all kind of goods or assets, including bank accounts, located at any place of the world, within the need to be declared in Panama. The Fiscal Code allows that, under the territoriality principle, the offshore companies or corporations constituted in Panama are able to execute invoicing and re-invoicing of goods or merchandise, from an office located in Panama, always that such products or merchandise do not enter the fiscal territory, being considered this activities as a extraterritorial operation exempt of tax over the profits.
The Corporations, as they are also known, shall be organized according to the constitution document named Public Deed, which shall be duly notarized and registered in the Mercantile Section of the Public Registry of Panama. applied the Incorporated Companies Law in subsidiary manner , this document is the one of greater importance in governing the Company´s life. The Public Deed of the Incorporated Companies of Corporations shall include, among other things:
- Name of the company
- Name and residence of the subscribers
- Objectives in which the company may be engaged
- Share capital, amount, shares distribution, types of shares
- Life of the company
- Name and address of the directors and dignitaries
- Name of the resident agent
Additional to the Public Deed of the Incorporated Companies or Corporations, it is necessary to have a Shares Register and Minutes Register Book, which openings shall be duly authenticated by a Notary.
The Incorporated Companies or Corporations which purpose is not to do commerce within Panama do not require obtaining commercial license to operate outside the territory of the Republic of Panama, as Offshore Incorporated Companies or Corporations. The incorporated companies shall pay an annual feeof US$300.00 for registration or validity tax, named unique rate (tasa única).
Offshore Banking Accounts
Panama allows the opening of a Overseas or local Bank Account, nimble and safely, being this a essential tool for financial operations of an offshore structure for fiscal planning or asset protection, together with the offshore companies or corporations, private interest foundations and trusteeship.
We can collaborate in the process for offshore bank accounts opening in recognized banking entities, providing the service for preparing all the required documentation, as it is the bank accounts opening forms, writing or obtaining of the required legal documents, legalization of the offshore Corporations´ or companies´ Minutes of that we provide, guiding you during the process.
The formalities may be executed from overseas, however, the signatory should travel to Panama for the interview at the bank.
The Banks will require information and references on the commercial and banking history of the interested party. Once the application is accepted by the Bank, funds deposits and withdraws may be executed, as well as transfers or investments orders, receive checks books, credit cards, etc. With this, our task will be completed, not having any relation with the account movements or with the transactions executed with it, as per discretion or confidentiality reasons.
The following requirements are regularly requested by the bank entities:
- One (1) bank and/or commercial reference letter.
- Copy of two (2) identifications (passport and an additional one) of the directors, shareholders, legal representatives or proxies of the Company and the persons entitled to sign in the account.
- Information on the origin and usage of the funds.
- Signature of additional forms required by the Bank (banking contracts, authorizations, etc.)
- Signature of the authorization for the bank to revise the credit history.
For more information about Bank Account openings click here.