Setup and Maintenance Costs

Incorporation (Setup) Costs - US$1400
The fee is all inclusive, no hidden costs.

Our company kits are always delivered with the same documents but may vary slightly from jurisdiction to jurisdiction. All our companies come in a deluxe corporate "attache kit", which is all inclusive and ready for use document kit.
Our corporate kits are delivered with the following documents:-
- Articles of Incorporation in English (Notarized and legalized by Apostille)
- Appointment of First Directors / Nominee Directors (if applicable)
- Nominee shareholders (if applicable)
- Shareholder certificates
- Minute Books
- Share registry books
- 1 Power of Attorney (Notarized and legalized by Apostille)
- Certificate of Incorporation
- Trust agreement (when applicable)
- Minutes and / or board resolutions when requested
- Corporate seal

Annual Maintenance Costs

Annual Maintenance Costs - US$1000

The fee is payable after the first year and covers annual taxes, registered agent and nominees. No hidden costs.

Compliance

Authorised and Issued Share Capital.

The standard authorised share capital is US$10,000 divided in to 100 common voting shares of US$100 each or 500 common voting shares of no par value; the capital may be expressed in any convertible currency. The minimum issued capital is either one share of no par value or one share of par value.

Classes of Shares Permitted.

Non-voting shares, preferred shares, bearer shares and registered shares

Taxation

No corporation tax is levied on non-Panamanian sourced income.

Double Taxation Agreements

None

Licence Fees

Annual Franchise Tax of US$250 is payable.

Financial Statement Requirements

No requirement if income is of non-Panamanian sources.

Directors

Both corporations and natural persons may act as directors and the minimum number of directors is three. They may be of any nationality and need not be residents of Panama. Panamanian companies are also required to appoint a minimum of three officers (president, secretary and treasurer) who may also be the directors.

Company Secretary

A company secretary must be appointed, who may be a natural or corporate person. The company secretary may be of any nationality and need not be a resident of Panama.

Shareholders.

The minimum number of shareholders is one.

General Information

The Republic of Panama, with an area of approximately 76,900 sq km, is located between Costa Rica and Colombia, forms the narrowest and lowest portion of the isthmus that links North and South America.

Population

The population of Panama is approximately 2.4 million, about 52% of which are in urban areas.

Political Structure

Panama was a Spanish colony until 1821. In 1903, Panama broke an alliance with Colombia and became an independent republic. The executive branch of the Government is at present composed of a President and two vice-presidents, elected for a five-year term by direct election.

Infrastructure And Economy

The Colon Free Zone is located on the Caribbean side of the Isthmus of Panama near the Atlantic entrance to the Panama Canal. This Free Trade Zone is the second largest in the world after Hong Kong. Operations and transactions taking place in the Free Trade Zone are subject to a special tax treatment whereby imports from other parts of the world and re-exports to other countries are exempted from any import or export taxes imposed by Panama. Income earned from re-exports is taxed at specially reduced rates.

Language

Spanish is the official and spoken language. English is also spoken widely in urban areas and is used daily in commerce and international trade.

Currency

US$.

Exchange Control

None.

Type of Law

Common Law based on English system.

Principal Corporate Legislation

Corporation Law No. 32 of the 1927 Commercial Code, Decree Law 5 of 1997 and Executive Decree 296 of 1997.

Company Information

Type of Company for International Trade and Investment

Generally, corporations are incorporated under the Corporation Statute Law 32 of the 1927 Commercial Code. Limited Liability Companies and Limited Partnerships are used also.

Procedure to Incorporate

By presentation of the proposed corporation's signed Articles of Incorporation before a Notary Public who creates a Public Deed for registration at the Public Registry.

Restrictions on Trading

Cannot undertake the business of banking, trusteeship and trust administration, insurance, assurance, reinsurance, fund management, investment funds, collective investment schemes or any other activity that would suggest an association with the banking, finance, fiduciary or insurance businesses.

Language of Legislation and Corporate Documents

Spanish and certified English translations.

Registered Office Required.

Yes, must be maintained in Panama at the address of the Registered Agent.

Shelf Companies Available

Yes.

Time to Incorporate

One day, subject to name approval.

Name Restrictions

A name that is similar to or identical to an existing company. Names of well known companies incorporated elsewhere or a name that implies government patronage. Approval of name is required.

Language of Name

Names may be expressed in any language using the Latin alphabet. The Registrar may request a Spanish or English translation.

Suffixes to Denote Limited Liability

All Panamanian corporations must end with the suffix Corporation, Incorporated, Sociedad Anónima or the abbreviations Corp, Inc or SA. They may not utilise the suffix Limited or Ltd.

Disclosure of Beneficial Ownership to Authorities

No