The Panama corporate legislation was enacted in 1927 by virtue of Law 32 of 16th February 1927, being said legislation used as a model for many other jurisdictions, which offers a more flexible corporate structure and confidentiality to the investors, under a protected legal.
framework. It has been verified that the Republic of Panama is the registered residence of almost half a million of corporations / foundations of private interest, becoming the second most popular jurisdiction in the world, equalling that of Hong Kong or the Principality of Liechtenstein.
Two or more individuals of any domicile or nationality may incorporate a Panamanian company. The Panamanian Company Law offers great advantages and incentives at the international trade.
The Panamanian companies can be incorporated and be used as:
- Agents for lawful and all kinds of commercial activities, financial, maritime, etc.
- Banking accounts, trusts, fixed time limit, mutual funds and any other commercial or financial values.
- Shareholders of other companies.
- Owners of apartments, houses, buildings or other properties.
- Administrative and property development company of international commercial transactions, etc.
A Panamanian company can be incorporated by shareholders and directors of any nationality . Panamanian companies are exempt from taxes, provided they do not trade within Panama and do not earn Panama source income.
The taxes or fees payable by an offshore company are: The taxes or fees payable by an offshore company in the Republic of Panama is strict principle of territoriality, meaning that all income produced or earned outside Panama is tax free, except an annual franchise tax of US $250.00 paid upon incorporation of the company, and thereafter US$300.00 on each anniversary.
Failure to pay this tax on the due date will result in a series of surcharges payable to the treasury.
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Corporate and Commercial Law
