Panama companies are also known as Panama Corporations incorporated under the General Corporation Law, number 32 of the 26th February 1927. This law has been the model for many other countries' legislation and offers a flexible corporate structure and ensures that investors have complete anonymity, whilst respecting the legal framework of international business.

Here are some of the assumptions that you need to be aware of when you are interested in a Panama based company:

Founders, directors and managers:
A minimum of 3 directors are required. Names and addresses of the directors are available to the public. Thus a Deputy Director is therefore often used to ensure anonymity. If our customers want to be a manager, we can allocate one of the two nominated directors. If the client does not want to declare himself in the public records, a proxy / proxies can be declared instead of the client. This service is provided at a minimal cost.

Panama offshore companies require 3 people in line. A chairman, a treasurer and a secretary and these may be individuals, companies or other legal persons. However only one of the above mentioned is obliged to perform admistrative duties. The President and the Secretary may not be the same person.

Meetings, shareholders and directors:
AGM and director meetings may be held if necessary, and these can be held either by telephone or other electronic media, whatever the most convenient.

The directors and shareholders will decide where the meetings will be held, and they do not need to submit an annual report. There is no legal requirement that the General Assembly  meets at least once a year.

Shares and funds:
A Panama Company does not require paid-up capital when formed. The default is 10.000 U.S. $ in capital
Currencies
The standard currency in Panama is the U. S. dollars.
There are no restrictions on the free movement of currency.

Reporting obligations:
There is no requirement for reporting of accounts or similar business in Panama.

Taxation:
Panama companies are 100% tax free on all activities and transactions that are made outside of Panama.It costs U.S. $ 300 annually in state tax, the so-called Good Standing.
You need an address that is registered in Panama. We deliver the address when we form the company for our clients.

Alerts and reporting:
Documents in a Panamanian Company will be registered with the Mercantile Registry.
Name and address of directors are available to the public.
No accounting or management protocol is required in a Panamanian company. If there are accounts, etc... They can be stored somewhere else.
A register of shareholders is required by law. This register must be well structured, alphabetically by name, address and date of purchase must be recorded. However, it is possible to hold the shares as bearer certificates / bearer. These documents need not be stored on your business address, and can be located  elsewere.
The Board's records must be kept, but they need not be stored on your business address, but can be stored anywhere.

Foundation:
Formation of a Panamanian company takes between 6 to 12 days. The data is usually handled by local lawyers, trust companies or professional corporate service providers.
Establishment Prices:

Advantages of the Panama Company:

- Limited liability

- You pay no tax on international income

- No tax on dividends

- No public inspection in the share register

- Low annual cost of a local address and Secretary

- No withholding tax