What are the advantages of an offshore company?
Income generated by an offshore company in Panama is exempt from taxes only if this occurs outside of the territory of the Republic of Panama. This is based on the territorial source principle. Therefore, corporations can manage operations from an office located in Panama, but income from those activities is not taxable under our law as long as it stays outside of national territory.
Privacy of the identity of shareholders since their names are not registered in any public office, only in the corporation's Stocks' Register Book.
In Panama, two types of corporation shares can be issued: bearer or nominative shares.
No paid-in capital is required, neither its registration in any bank. Assets don't need to be located in Panama.
The directors and shareholders may be of any nationality and resident of any country. It’s only required to have a minimum of three (3) directors for the corporation to operate.
Articles of Incorporation, the document to constitute a corporation, may be created in English and in any other language.
The Law allows holding meetings of directors and shareholders in any country, in person, over the phone or electronically.
To maintain confidentiality, if the corporation has nominee directors activities may be handled through a general power of attorney that must be registered at the Panama Public Registry.
The corporation does not need any type of commercial license to operate outside or within national territory.
Panama offshore corporations may own any type of goods or assets.
Offshore corporations constituted under other jurisdictions may change its domicile to Panama in order to take advantages offered here. Any Panamanian offshore corporation may also perform re-domiciliation to another jurisdiction.