Panama has the world's largest shipping registry and is a substantial centre for banking. Panama enacted legislation whereby only locally-sourced income is taxed and therefore the country has advantages similar to Offshore Centres. The language in Panama is Spanish and therefore Panamanian Companies are favoured by Spain and Latin American countries. Panama is perceived as a secretive, non-compliant jurisdiction now wishing to clean up a tardy image as a haven for money-laundering
Panama Company taxation
Taxes are only payable if business is carried out in Panama, levied at 30%. Foreign sourced income is Tax exempt. There is no Capital Gains Tax or need for VAT registration for foreign earnings. However, there is a requirement to pay a local annual tax of $250. Panama was placed on the OECD's 'grey list' of territories which have committed to, but not yet implemented, the tax transparency and information exchange. Panama now has a tax treaty with Mexico and other tax treaties are pending.
Panama regulatory Compliance
Panama has a Registrar of Companies where the articles of Panamanian companies are filed and the names of the directors are recorded. Directors and shareholders may be individuals or Corporations. There is a requirement to prepare accounts but no requirement to file accounts or an annual return. A Panama company can change its domicile to another jurisdiction.
Panama Company Formation
AMP & Partners Limited can carry out a name check and initiate the incorporation process for you. Incorporation takes around 7 to 10 days.
Panama Company Structure
A Panamanian Corporation is formed by two subscribers (or nominee shareholders) who sign the Articles of Incorporation (Statutes) before a public notary. The usual amount of subscribed capital is $10,000. All documentation is in Spanish. Several classes of shares are permissible including bearer shares which must be kept in custody and notified to the Company Registrar. Three directors need to be appointed to act as the President, Treasurer and Secretary and named in the articles of the company. AMP & Partners Limited can provide you with fully insured Nominee directors and shareholders so that your identity can be protected. We will issue you with a Power of Attorney, if required.
Panama Nominee directors, shareholders and Secretary
Unlike most other on-line Formation Agents, AMP & Partners Limited provides fully-insured Nominee Corporate Director, Shareholder and Secretary Services. We guarantee that your Panama Company will be properly formed and delivered to you and managed professionally, for the price quoted. There are no hidden fees. Furthermore, we guarantee not to increase the price of the annual fees for a five year period and thereafter any subsequent annual price increase will be related to the retail price index forecast estimated to be 3.3%.
Panama Company Names
It is not possible to use the ending "Limited" or "Ltd." For a Panama Company. It is usual to use Corp, Inc, S.A or A.G. There are restrictions on using words in the company name which convey that the business of the company is of a licensed nature, such as Betting, Insurance, Financing, Trust or Banking business.