Benefits and business advantages:
Panama is a 100% Tax Haven: Non-resident Panamanian International Business Corporations (IBC’s) and Private Interest Foundations do not pay tax on any of their income (as indicated below), nor do they have any reporting requirements to the Panamanian government.
- No tax reporting requirements.
- No income tax.
- No capital gains tax.
- No interest income tax
- No sales tax.
- No tax on issuance of corporate shares.
- No tax to shareholders.
- No stock sale or transfer tax.
- No capital stock tax.
- No property tax.
- No estate tax.
- No gift tax.
- No stamp tax.
- No succession tax.
- No inventory tax.
- No Capital Requirements: Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital must be fully paid.
- Directors: Every Panama corporation requires 3 directors/officers (President, Secretary and Treasurer). The directors/officers must be individuals. Panama corporations directors, officers and shareholders may be of any nationality and resident of any country. The directors names and identifications must be presented in the public registry when the corporation is formed.
- Nominee Directors: We offer our clients the optional service of using our “Nominee Directors” for their corporation(s). For purposes of confidentiality, most of our clients prefer that we provide nominee directors/officers for their corporations, since unlike IBC’s set up under Nevis corporate laws, three directors have to be in the public registry. When we appoint nominee directors for the entities that we establish for our clients, we can always provide our clients with pre-signed, undated letters of resignation from the directors so that our client can replace those directors at any time.
- Directors or Shareholders Meetings: Annual general meetings of either shareholders or directors of the corporation are not mandated or required. However, if meetings are held, they can take place anywhere in the world by proxy – via telephone, email or other electronic means. Any resolutions passed are valid regardless of whether they are signed on different dates or in different jurisdictions.
Panama offers the most favourable and most flexible incorporation laws available in the world. Private Interest Foundations are also available, and are one of the most widely used estate planning structures in the world today.
- Panama is the registered domicile for over 400,000 corporations & foundations, making it one of the most popular jurisdictions to incorporate in the world.
- Panama does not impose any reporting requirements for non-resident Panamanian corporations.
- Panama does not allow “piercing the corporate veil”.
- Panama corporations share certificates can be issued in Nominative or Bearer form (anonymous form of ownership), with or without par value.
- Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital must be fully paid.
- Panama corporations directors, officers and shareholders may be of any nationality and resident of any country.
- Neither the directors nor the officers of Panama corporations need to be shareholders.
- Meetings of directors, officers, and shareholders may be held in any country and accounting books may be kept in any country.
- It is not necessary for the interested parties to be present in Panama for the purpose of establishing a corporation.
- Corporations conducting business outside of Panama do not require a commercial license for offshore business activities.
Panama’s circulating currency is the US Dollar, and Panama has no currency exchange controls or currency restrictions so funds can flow in and out of the country freely.
- Panama uses the U.S. dollar as its legal tender (currency), instilling tremendous fiscal and monetary discipline while keeping inflation very low – under two percent for the last 40 years.
- A dollar economy insulates Panama from global economic shocks. During the Asian monetary crisis of 1998, Panama became one of the healthiest economies in Latin America.
- No currency exchange controls. Panama has no restrictions on monetary remittances abroad, including dividends, interests, branch profits and royalties.
- No restrictions on funds flowing in or out of the country.
Panama continues to maintain what we consider to be the most solid banking and corporate book secrecy laws in the world, which are engraved in its’ constitution. With Britain’s proposed regulation for removal of bank and corporate book secrecy in the UK offshore territories, plus considerable dilution of privacy laws in jurisdictions such as Bahamas, Antigua, St. Vincent etc. it is clear that Panama remains the most secure offshore financial center – where privacy and confidentiality is not only respected, but vigorously protected by constitutional law.
- Panama offers the best bank secrecy laws in the world.
- Panama offers the best corporate book secrecy laws in the world.
- There is no such thing as “piercing the corporate veil” in Panama.
- Revealing banking information to third parties is a crime, punishable by prison.
- Panama has no mutual legal assistance treaties (MLAT’s) for sharing of banking information with any other nation and does not recognize court rulings from other countries. (Under the new laws, they make exceptions in cases of drug money laundering or drug smuggling plus terrorist and arms smuggling related cases)
- Panama Corporations offer “Bearer Shares”, allowing shareholders to maintain 100% anonymity and privacy.
- Panama Private Interest Foundations allow for Private Protectorate Documents and Private Letters of Wishes, enabling controllers (Protectors) and beneficiaries of Private Interest Foundations to remain 100% anonymous and private.
Panama has what is considered by government analysts to be the most stable government in all of Central or South America.
- Democratic government since 1990. The Government of Panama is headed by the executive branch, which is composed of a president and two vice presidents, democratically elected for a five-year term by direct vote.
- Stable government with excellent government infrastructure.
- Pro-business government attitude and policy.
- Roman law system.
- Panama is a peaceful country with no military. Unlike many neighboring countries, personal security concerns are limited. Panama has the lowest crime rate in all of Central and South America.
Panama’s economy is one of the most stable, prosperous, and most advanced in all of Central and South America.
- Panama is home to the second largest international distribution and trade center (free trade zone) in the world next to Hong Kong. Panama’s Colon Free Zone has over 1500 international import/export businesses operating within it, receives more than 250,000 visitors yearly, and generates exports and re-exports valued at more than US$11 billion annually.
Panama City is home to the second largest international banking center in the world next to Switzerland. Panama has the most modern and successful international banking center in Latin America, with more than 150 banks from 35 different countries.
Panama is the ideal jurisdiction for international investors and businessmen to operate their offshore corporations, banking, investing, finances, and all other areas of international trade as well as a great place to live and work and invest in real estate.