The Benefits of the Panamanian Corporation

Offshore Financial Solutions (OFS) established relations with top Panamanian law firms, only after extensive research and on site, face to face meetings with the senior members of these firms.

Panamanian law firms do all the things that law firms anywhere do, but many of them specialize in the establishment of corporations and foundations for clients from around the world that are concerned with asset protection and personal and business privacy.

Panamanian corporations can be set up quickly and easily by the law firms with whom we do business enabling the owner to commence their business in an offshore, business-friendly jurisdiction that has no interest in invading owner privacy or taxing their profits.

Corporate shares can be issued in bearer form and there is no requirement to disclose the ownership of the corporation. This makes the corporate ownership completely confidential. There is no record of the ownership recorded anywhere, including the government of Panama.

Ownership of the corporation can be sold or conveyed to another simply by transferring the shares.

There are no requirements for capital to be paid in.

Authorized capital is often set at $10,000 and can be designated as goods, services, consulting, etc. The assets can be located anywhere in the world and shares can be issued with no par value.

The shareholders, directors, or officers can be individuals, entities, or other companies.

There are no requirements to file any financial records.

No Annual meetings need be held. But if meetings are held, they can be held anywhere in the world, in any language.

If there are resolutions, they can be signed in different places and in at different times and facsimiles or digital signatures are recognized.

There are no income taxes required of Panamanian corporations as long as income is not earned from a business in Panama. Interest from Panamanian banks or capital gains from the sale of stocks are also exempted. Tax-free.

There is a flat annual tax of $300 per year for non-resident corporations. That is all.

That said, US citizens are required to report income they receive from anywhere in the world. As such, they are urged to seek the advise of their tax professional and insure they are in full compliance with US tax laws with regard to reporting offshore income.

Panama has no tax treaties with other countries. Nor does it have any mutual agreements for the sharing of banking information.

Panama has no information exchange agreements with other countries. (There are exceptions if terrorism, drug dealing or money laundering are fully substantiated by a foreign government).

There are no exchange controls in Panama, which means there is a complete free flow of money in and out of the country.

No reports of any kind are required to be filed with the government. There are no requirements for annual meetings of the shareholders or the directors and no requirement for any books or records.

Panama does not recognize court orders from other countries, unless they deal with drug smuggling or money laundering.

The shareholders (whoever holds the shares) have the ultimate control. Their names remain anonymous.

They elect the Board of Directors. The officers - there must be a President, Treasurer and Secretary - are appointed by the Board. The Directors can also be the officers.

The corporation must have three directors. These names are a matter of public record. This requirement is generally handled by the law firm providing nominee directors who provide signed, undated letters of resignation to the shareholders.

There must also be a registered agent and this service is also generally provided by the law firm.

The Directors can provide a special power of attorney to the shareholder or any agent or representatives of the shareholders. The Power of attorney is not a matter of public record.

The corporation needs no business license to operate inside or outside of the country.

Corporations dominated in other jurisdictions may relocate to Panama and Panamanian corporations can relocate to other countries.