Panama Company Incorporation

Panama company incorporation refers to the process by which Panama Non-resident Corporations are created. Panama corporations are regulated under the General Corporation Law which was passed in 1927.

To incorporate Panama companies, it is usually recommended that nominee directors be used due to the fact that the particulars of the members of Panama companies are recorded in public archives. To facilitate the Panama company incorporation process, two local residents are designated as the subscribers and organizers. Unlike other jurisdictions where company incorporation can be done with only one person or corporation, Panama company incorporation requires at least three directors. The positions of Treasurer, Secretary and President must be taken up by either one of the directors, but careful note must be taken that a same individual is unable to be both President and Secretary. When incorporating Panama company, the possibility exists to appoint three nominees for each director in the event that the beneficial owners intend to maintain their privacy. A Panama company is able to have any number of officers.

In order to successfully go through the process of Panama company formation, a corporation must have a share capital of no less than US$10,000 which is standard but does not have to be fully paid-in at the time of incorporation. The authorized capital can be set at 10,000 or any amount above that since there is no restriction on the maximum amount of capital that a Panama corporation can have.

Upon Panama company incorporation, Panama companies are given the status of tax exempt entities and are as a result not liable for any direct or indirect taxation from Panama. All trading activities must be limited to outside Panama and a resident agent must be obtained in order to undertake the Panama company registration process. Resident agents are legal professionals, must be licensed and conduct all legal formalities that form part of Panama company incorporation.