The Panama Corporation
Panama corporations can provide legal protection of assets and identity. Panama offers rigorous banking and financial secrecy laws—in fact, they are among the strictest privacy protection laws in the world. A Panama corp. is perfect for international investors and businessmen forming an offshore corporation.
Panama Incorporation Law
Panama IBC law is based on some of the most ironclad banking and corporate book secrecy laws in the world. These laws are written into the constitution of Panama. Now that Britain is proposing the removal of bank and corporate book secrecy in its offshore territories, Panama may be the best, most secure offshore financial center. Privacy and confidentiality are not only respected, they’re your constitutional right. Unlike the British territories, Panama is a sovereign nation—it is not controlled or governed by any other country in the world. Panama does not have Mutual Legal Assistance Treaties (MLATs) with any other country in the world. It is a genuine, legitimate international trade and banking center, well-known and respected throughout the world.
Benefits of a Panama Corporation
All financial activity from a Panama International Business Corporations (IBCs) but outside of Panama will be tax exempt. There are no reporting requirements to the government. The annual government fee for a non-resident Panama Corp is only $300. There is no minimum capital requirement for establishing a corporation. There are no restrictions on foreigners forming or controlling Panamanian corporations. Panama Corporations may issue shares in ‘bearer’ form (a measure taken for greater privacy—he who holds the shares, owns them, no names mentioned) with or without par value. Meetings of directors and shareholders may be held anywhere. The accounting books of the corporation may be organized and kept anywhere on Earth. The registered agent is not required to keep any records at all for the corporation.
Banking Transactions for a Panama Corporation
Banking done in Panama by non-resident Panama corporations is not considered actual trade within Panama. Income from these types of transactions or investments (profits on stock trading, or interest earned through the Panama IBC) is completely exempt from Panamanian taxes.
Documentation of Panama Incorporation
The only deed or articles of incorporation is the only documentation on public record in Panama. It provides just the names and addresses of the Panama Corporation’s officers and directors, as well as the registered agent at the time of incorporation. The beneficial owners—the one or ones holding the bearer shares—don’t need to be recorded in the Public Registry. Annual general meetings of either shareholders or directors are not mandated or required. If there are actual meetings, they can take place anywhere in the world, or by proxy (email, telephone, MSN, etc.) Any resolutions passed are valid regardless of if they’re signed, or if they’re in different jurisdictions. There is a prepaid tax of only US$250 required by the government upon Panama incorporation that must be paid, in addition to any setup fees.
Panama Corporations and Currency
There are absolutely no exchange controls or currency restrictions in Panama. Panama’s relaxed banking laws make it easy to move funds in and out of the country. |
