INTRODUCTION TO REGISTERING A COMPANY IN PANAMA
Panama Company Formation is a Central American country, perhaps best known for its famous canal, which dissects North and South America. There are more than 300,000 registered companies in Panama and a considerable proportion of these are engaged in trading or related offshore operations in banking or shipping. The appeal of the jurisdiction to foreign investors is multifaceted; the absence of exchange controls, there is complete freedom to transfer funds with no currency restrictions. There is low inflation and Income tax is levied only on income derived from business carried on within the country. There are no taxes on capital, stocks, bonds and other investments held by corporations.
What is the most common type of company in Panama?
Panama companies, also known as Panamanian Corporations are created under the General Corporation Law, Law 32 of February 26, 1927. Law 32 has been used as a model for many other jurisdictions and offers a flexible corporate structure, provides investor privacy and ensures the legal framework to conduct legitimate business activities in the international arena.
What is the situation regarding share capital?
- Panama Corporations do not require paid-in capital.
- There is no time limit in which Authorized Capital must be fully paid. However, registered shareholders that have not paid in the value of the shares they have subscribed, will be liable to third party or creditors of the company with their patrimony for the amount owe to company.
- 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.
- Non-resident Panama corporations are 100% tax-free on its activities outside of Panama.
- An annual corporate franchise fee of US$300.00 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.
How can I get more information about Panama Business?
Please contact us and EuroCompanyFormations.com will be pleased to discuss your Panama Company formation in greater detail.Contact US