Panama company formation, Company Formation, offshore company formation, offshore company, limited company

Panama company formation: Forms of Company

Company formation Panama: Services provided by our Law Firm – or our Partner Network

  • Formation of the company, Apostille, upon request certified translation of the formation documents
  • Certificate of Incorporation: The certificate of incorporation is an official document that confirms the name of a registered company, as well as the registration number.
  • Certificate of Good Standing
  • Ranging from Registered Office to maintaining a business office
  • Upon request: Nominee Director (attorney acts as a trustee and acts as the Director of the company during the formation phase) and / or Nominee Shareholder (natural person or legal entity – Law firm acts as a trustee in the form of the shareholder of the company)
  • Upon request:  Permanent Nominee Director (Attorney acts as trustee in the capacity of Director of the company during the entire term of the agreement)

Clarification:

A production site, a site for the exploitation of mineral resources or construction works whose duration is greater than 12 months always constitutes the establishment of a place of business in the country of the company’s seat (for example: Belize, BVI, Cayman Islands, Nevis etc….), independent „of the place of managerial supervision” (analogous to Article 5 OECD_Model Convention). Otherwise the taxable permanent establishment is defined via the „place of managerial supervision”.  As a rule this implies, that a person who maintains his ordinary residence in the country of the company’s seat must act as the Director of the company. Either the client or an agent relocates his ordinary residence to the country of the company’s seat and he, himself, acts as the Director of the company or our Law Firm in the country of the company’s seat provides a Nominee Director. Alternative: For example: The Danish client / founder acts as the Director of the company and establishes credibility that he is present in the country of the company’s seat within the course of carrying out the required managerial supervision. Due to the fact that as a rule tax havens (Belize, BVI Cayman Islands, Nevis etc…) do not maintain a public commercial register, the installation of a “Nominee Director in the formation phase” is possible and not necessarily a “permanently present Nominee Director”.

  • Upon request: Bearer shares
  • Upon request: Liechtenstein Institute as the shareholder of the company

Clarification:

The shareholder or the shareholders are the „Owner” of the company. It can be individuals or companies.  Bearer shares, nominee shareholder or for example a Liechtenstein Institute as a shareholder serve to conceal the true ownership relationships.  Which constellation is best suited, is dependent upon different prerequisites. We would welcome the opportunity to discuss this with you in a personal setting.

  • Opening of an account in the name of the company, incl. Online banking and VisaCard (in the case of bearer shares the opening of an account is often only possible, if the client / founder is not present at the opening of the account)
  • Upon request: Investment account in Switzerland (Minimum deposit 10,000 CHF)
  • To the extent it is a requirement of domestic law: Provision of proof of the exempt status to the authorities (most tax havens differentiate between offshore and onshore companies. Onshore companies are taxed normally, offshore companies – i.e. companies which transact business outside of the country are not taxed. The Cayman Islands is the exception: Real zero-tax haven)

Complete packages (full service)

The following services are included in our complete packages:

Forming of the company, entry in the commercial register of the country, apostille, notarially certified translations of certificates into English, unless official language

  • Nominee director: An attorney in the formation country will act as nominee director of the company (to the outside) and transfers all rights and obligations internally to the actual beneficiary (notarial deed of trust). The director does not have any account authority.
  • Nominee shareholder: a tax office in the formation country will act as nominee shareholder (to the outside) of the company and transfers all rights and obligations internally to the actual beneficiary (notarial deed of trust).
  • Domicile of the company in the formation country: deliverable postal address, availability by telephone, telephone and fax, mail forwarding service
  • Account opening: bank account for the company at a renowned major bank in the formation country, internet banking, VisaCard and cheques. Only the founder of the company is authorized to have access to the account.
  • General power of attorney to the founder: Only the founder receives a notarially certified general power of attorney for the company.
  • Recommendation of a renowned tax office in the formation country, for book-keeping and accounting
  • Internet-homepage of the company hosted on a server in the formation country: 5 pages for presentation of services/products, feedback form, imprint, e-mail address. May be extended at any time.
Panama City

Shares/Stock, Capital

  • Panama Corporations do no require paid-in capital.
  • There is no time limit in which Authorized Capital must be fully paid.
  • The standard capitalization for a Panamanian Corporation is US$10,000.00.
  • Par and Non-par Value Shares, voting and non-voting shares, as well as various other categories and classes of shares are allowed.

Currency

  • The legal tender of Panama is the US dollar.
  • There are no exchange controls or restrictions on the free movement of currency.

Reporting Requirements

There are no reporting requirements for non-resident Panamanian companies.

Taxation

  • Non-resident Panama corporations are 100% tax-free on its activities outside of Panama.
  • An annual corporate franchise fee of US$250.00 is charged to maintain the company in good standing.
  • You should have a local Registered Agent in Panama for your Panama IBC. This service is included in our start-up package and Annual Service Fee, starting from the second and each subsequent year of Panama Incorporation.