If you have thought about forming a Panama offshore company, then it will behoove you to know some basic information about the laws that regulate offshore companies in Panama. You will find that the laws usually benefit offshore corporations much more than the regulations in the United States. Knowing the basic rules will help you stay in compliance so that you can continue to reap the benefits of forming a Panama offshore company.
A Panama Offshore Company’s Directors
When forming a Panama offshore company, you will need to name at least three directors. This does not necessarily mean that you need to be one of the directors, although many people choose this option. If you would like to be named a director of your Panama offshore company but do not have other individuals for the remaining positions, then some law firms will name directors for you. Note, however, that anyone named as a director will have access to your corporation’s business information.
A Panama Offshore Company’s Officers
Forming your Panama offshore company will also require at least three officers named to the positions of president, secretary, and treasurer. You can also create other titles and there is no limit to the number of officers that your Panama offshore company can have. Note that it is perfectly legal for the corporation directors to hold officer positions too. Officers can even hold more than one position at a time. The secretary, president, and treasurer, however, must be three different people, companies, or other legally recognized entities.
Holding Meets for a Panama Offshore Company
As an offshore company, your corporation can hold meetings anywhere in the world. They need not be conducted in Panama. You can even choose to hold meetings over the phone. This makes it significantly easier for directors and officers living outside of Panama to conduct business with each other.
Panama requires that offshore corporations keep minutes of their meetings. Like the meetings themselves, though, the minutes can be kept anywhere in the world. The directors often choose to keep the meetings in their home countries.
Stock Registers for Panama Offshore Companies
Panama offshore companies are required by law to keep stock registers. The stock registers should contain the names, locations, and acquisition dates of shareholders in the corporation. A Panama offshore company’s stock register, however, does not require the corporation to list the names of people who hold bearer shares. Like the meetings and minutes, a company’s stock register can be kept in Panama or any other location in the world.
Limitations for Panama Offshore Companies
A Panama offshore company is free to conduct business anywhere in the world as long as it does not sell goods or services within Panama. Panama offshore companies are, however, restricted to conducting legal business activities. If the government suspects that the company is being used as a front for illegal activities such as money laundering or selling drugs, then it can seek permission to investigate the company to make sure it is complying with the law.