Panama offshore company

How to create an offshore company from Panama

Societies or offshore corporations in Panama are known all over the world and offer the investor defferent advantages linked to the fiscal benefits in Panama.
A Panama offshore company that has no business interests within Panama is 100% free of all local taxes apart from an annual franchise tax of USD150 which makes Panama an interesting jurisdiction for many seeking a stable political and economic environment in which to incorporate.

In Panama it’s important to note that the business languages are both Spanish and English so all company documentation must be presented in both languages.
A Panama offshore company has to have a minimum of one shareholder, their name/s appear in public records, it must also have a minimum of one director whose name's appears in the public records as well. The director has to appoint a president, secretary and a treasurer although the director can also fill these roles. As stated it is possible to have both nominee directors and shareholders in Panama.

The Offshore companies are governed by the Law N °32 of February 26, 1927, which specifies that to constitute it will be necessary the agreement of two or more people older than 18 years old, of any nationality, yet without domicile in the Republic of Panama. The Joint-stock companies will be able to have any lawful object and dedicate itself to any commercial activity.
To exist, Panamanian Offshore companies do not need any Initial Capital, previous or posterior to its constitution. The shares can be to the Holder or Preference and the shareholders of the Society can be constituted by natural persons or by other national or foreign societies.
For any other operation that is perfected, consumed or bring profit in another country, In other words, for Offshore operations, the Joint-stock companies Corporations in Panama will not have to pay any tax, except for the Unique annual Rate, Even when the operation is coordinated from an office located in Panama.
Offshore Companies must be organized according to their constitution document denominated “Social Agreement” which will have to be notarized and registered in the Panama Public Registry in the Mercantile Section. This is the document that governs the Society, applying the Laws for Joint-stock companies in Panama.

The Social Agreement of the Joint-stock companies or Offshore Corporation must include:

1. Company Name
2. The name and domicile of affiliates.
3. The activities the company will be allow to perform
4. The share capital, amount, shares distribution, and types of shares.
5. Company Terms
6. Name and address of directors and officials
7. Name of the resident agent

Panama offshore companies may bring a number of benefits to individuals or companies:
- Taxation - business may be structured so that profits are realized in ways that minimize their overall tax liability.
- Simplicity - except for regulated businesses, such as banks or other financial institutions, some jurisdictions make it relatively simple to set up and maintain companies.
Asset protection - it is possible to organize assets and transactions in such a way that assets are shielded from future liabilities.
- Anonymity - by carrying out transactions in the name of a private company, the name of the underlying principal may be kept out of documentation. Having said that, current anti-money laundering regulations often require banks and other professionals to look through structures.
- Thin capitalisation - offshore jurisdictions tend not to impose "thin capitalisation" rules on companies (except for regulated entities such as banks and insurance companies), allowing them to be formed with a purely nominal equity investment.
- Financial assistance - offshore companies are usually not prohibited from providing "financial assistance" for the acquisition of their own shares, which avoids the needs for "whitewash" procedure in certain financial transactions.

Law & Legal Services in Panama

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