According to Panama's Corporation Law 32 of 1927, any two persons of any nationality may create corporations. Panama is the second most popular jurisdiction to incorporate in the World.

The normal procedure in the formation of a Panama corporation is as follows: the Panamanian lawyers acting for the client form the corporation and sign any documents relating to its formation. We will provide you with the necessary information. We can handle everything for you without you having to come to Panama.

PANAMANIAN CORPORATIONS OFFER THE FOLLOWING BENEFITS

Non-resident Panamanian Corporations do not pay Panamanian tax on income

No reporting requirements to the Panamanian Government (Panama does not impose reporting requirements or taxes for non-resident Panamanian Corporation).

Annual government fee for non-resident Panamanian Corporations is only $250.00 to remain in good standing.

No minimum capital requirement for establishing the corporation (Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital must be fully paid).

No restrictions to foreigners in forming or controlling Panamanian Corporations

Corporate shares may be issued in "bearer" form (for privacy - he who holds the shares owns them) with or without par value.

Meetings of directors & shareholders may be held anywhere (meetings can take place anywhere in the world by proxy - via telephone, email or other electronic means).

The accounting books of the corporation may be organized and kept anywhere.

The registered agent is not required to keep any records for the corporation ( every corporation should maintain a minute book and stock register, which can be held anywhere in the world).

This cost includes expenses such as:

• Notaries fees
• Capital Registration Tax on the basis of authorized capital of US$10,000.00.
• Resident Agent fee.
• Authentications
• Legal fees.
• Power of attorney included in the Articles of Incorporation ( if you desire so )
• Translation into English of the Articles of Incorporation.
• Two Shares Certificates issued to the bearer or nominative. (The shares can be issued to the bearer or nominative)
• Certificate of good standing of the corporation translated into English.
• Courier expense

* Our fees do not include the Annual Franchise Tax of US$250.00 for the first year.

According to the Law 6 of 2005, February 2, the annual franchise Tax is US$250.00 first year and $300.00 the following years. According to the Law, the corporate franchise tax payment deadlines are as follows:

Incorporation Date ..................Tax Payment Deadline

• 1 January - 30 June ................ 15 July
• 1 July - 31 December.............. 15 January

LATE PAYMENT PENALTY

• According to the Law 6 of 2005, February 2, the flat penalty tax is $300.00.

NOMINEE DIRECTORS SERVICES

Our firm can appoint the three nominee directors/Officers required by Law. If you want to preserve anonymity there is an additional charge of US$450.00 since every corporation requires 3 directors (President, Secretary, Treasurer; US$150.00 for each one). The nominee directors can be individuals or entities.

There is an additional charge of US$100.00 if you require the general power of attorney in a separate document, duly sealed by a Notary Public and authenticated. Power of attorney will grant you power to open bank accounts, sign contracts or make any other business activities in behalf of the corporation

Corporation Law

PRIVATE FOUNDATIONS

Panama also offers the Panama Private Interest Foundation, which is one of the most useful asset protection and estate planning vehicles available today. The Panama Foundation is generally used by people who wish to control and maintain ownership of foreign corporations. Instead of holding the corporation's shares in their personal name or in bearer form, they establish a Private Interest Foundation in Panama that holds or owns the shares of their foreign corporation.

The Panama Private Foundation is both like a Trust Fund and a Corporation.  A foundation can hold bank accounts or any other financial investments such as stocks, bonds or Certificates of Deposit as long as they are for the benefit of the foundation. 

Private Interest Foundation Law

ADVANTAGES OF PANAMA PRIVATE FOUNDATIONS

1. Complete management privacy and confidentiality.
2. It offers total secrecy and anonymity; no requirement to disclose beneficiaries
3. Foundations can hold assets such as corporations, bank accounts, brokerage accounts, real estate, or any other type of asset, free of taxes or reporting requirements.
4. Foundations can have a nominee foundation council and the foundation council members can be from anywhere in the world or replaced at any time by the Protector.
5. Foundations Protectors (controllers) can be appointed through a Private Protectorate Document, allowing the Protector to control the foundation privately and anonymously.
6. Foundations Beneficiaries can be appointed by the Private Protector through a Private Letter of Wishes, allowing the beneficiaries to also remain private and anonymous.
7. The Foundation and the Foundations beneficiaries have no reporting requirements and pay zero taxes when assets are donated to or received from the foundation.
8. The Foundation can be used as a charitable entity, for receiving donations or donating to anyone that the Protector designates, free of taxes or reporting requirements.
9. A foundation may transact business in whatever currencies it chooses
10. Its founders, members of the foundation council and protectors may be of any nationality and may be residents of any country.

Uses of a Private Interest Foundation:

• To handle family bank accounts.
• To dispose of in expedite and effective manner certain assets or goods of the Founder upon the death of same, without being subject to the formalities and restrictions of the testamentary provisions.

Legal Fees

• To organize a Private Interest Foundation ......... US $850.00. 

Not included:

• Annual a resident agent....... $200.00.
• Annual Government Corporate Franchise Tax..... US$250.00
• Annual Government Late Fee for Corporate Franchise Tax... US$50.00
• Panama Nominee Council Member Service US $150.00
• Foundation Donation Forms............ US$50.00
• Foundation Letter of Wishes Drafting ....... US$250.00
• Foundation Policy Drafting (with notarization)..... US$250.00