Panama has always been a popular destination for business and banking, and even the Panama Papers have not tarnished its reputation. Panama alone has more offshore businesses than the whole Caribbean region! It was the first tax haven ever as it started to register offshore businesses back in 1929. The country is on the list of the top 20 countries that attract the largest number of foreign investors according to the World Bank.
If you need a respectable offshore jurisdiction to establish a corporation for international business, Panama is the answer. We would like to invite you to our portal to read a guide to forming a company in Panama and discover much more about international business, banking, and investments. We also have a team of professionals who will give you practical advice and help you with practically every aspect of business in any corner of the world.
You can get in touch with our specialists to get answers to any questions and make an informed decision. We provide some free services: for example, if you are not sure which jurisdiction to choose to form a company or establish a bank account, we will help you at no fee. And if you want to set up your business in a foreign country without studying its laws or exploring the nuances, you can buy a package of turnkey services: we will do all administrative tricks for you if you collect the documents according to our recommendations. Focus on your business and let us complete the formalities!
Benefits of Setting Up a Corporation in Panama
- You can have one shareholder in your Panama corporation that will own 100% of the shares without any limitations as to nationality or residency, and it can be an individual or a legal entity.
- Panama provides a high level of confidentiality: the company shareholders and beneficial owners will not be disclosed, and you can officially use an additional layer of protection: professional nominees.
- The company’s paid-up share capital is not limited in any way. However, the standard amount is 10,000 US dollars.
- The corporate capital is not controlled by the state.
- Each non-resident company must have a registered agent on-site.
- The company founder’s presence is not mandatory to complete all the formalities related to company establishment. All the required steps can be taken remotely on the basis of a power of attorney or by using a nominee, and it will take no more than 7 days. However, if you also want to create a Panamanian bank account or obtain licenses to conduct business locally, we will need more time (from 6 to 7 weeks on average).
Step-by-Step Procedure of Corporation Formation
- First of all, you will need to decide who your registered agent will be. If you decide to use our services, we will provide an agent for you. Otherwise, you will need to look for a private lawyer in Panama who will deal with public authorities in Panama on your behalf.
- The shareholders of your corporation will be required to submit a full package of documents for Know Your Customer and due diligence checks.
- You will also need to execute all the documents that will contain the rules of corporation management, such as the Articles of Association.
- All the documents required for legal entity incorporation will be registered in the Business Registry of Panama.
- The next step is to register the Certificate of Registration with the local authorities.
- If the Panamanian market is one of your targets, you will need to obtain a license to carry out business activities in the country. However, if your business is conducted outside Panama, you will not need any licenses.
- Panamanian banking is very good, so you may want to open a business account here. However, this is optional, and there are other excellent jurisdictions we can recommend.
- Deposit the amount required to start operations in your account – and get down to business!
Board of Directors: Basics
The Directors are appointed to the Board by the vote of shareholders and are responsible for the company’s control and management. The minimum number of persons on the Board is three, individuals or legal entities residing in any country.
If there is at least one Director on the Board who is a resident of Panama, it will considerably simplify company incorporation, obtaining licenses, and establishment of a bank account.
The Board of Directors shall have the right to issue bylaws for more efficient company management and include them in the Articles of Association.
The responsibility of the Directors is as follows:
- Economic efficiency to increase the assets of the company’s shareholders.
- Keeping adequate accounting reports.
- Keeping records that reflect the dividends distributed by the company.
- Acting in compliance with Panama laws and the company’s Articles of Association.
- Implementing the decisions made at General Meetings.
The General Meeting of Shareholders can be held in any country with all members present physically or via videoconferencing. If at least one participant cannot be present remotely, the meeting cannot be held.
Choosing a Name for Your Corporation
Company name registration can sometimes be tricky in Panama as its register has been kept since 1929 and many good names are no longer available. However, the mission is possible! We recommend our customers to come up with at least 3 names in case the main one is unavailable.
The name of your corporation can contain foreign words. Make sure to include an abbreviation that denotes the company’s legal form: SA, Corp., or Inc. You can also provide translations of the name into several languages to have a unique name for each country where you are going to operate.
There are words that are restricted: Trust, Insurance, Foundation, Bank, Finance, and others. This is connected with the fact that consumers may think that your company is a governmental agency rather than a commercial organization. Thus, make sure to avoid these words in the name of your company.
Conclusion
Follow the above link to read more details about the Panamanian corporation, its registration, and its functioning. Reach our experts to ask them questions and order the services that will help you avoid administrative hassle and concentrate on business plans instead. We are here to help you, so don’t miss a chance to get a fully functional business easily!