Republic of Panama Corporation

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Advantages of registering of company in Panama (Republic of)

 

One of the major advantages of Panama Non-resident corporations is that companies registered in Panama are not considered to be offshore companies. Yet, as a non-resident corporation you still benefit from 100% tax free regime. more ...

 

If you decide to set up your business in Panama City, there are a number of steps you will need to follow:  incorporate the company; tax registration; register with the Ministry of Commerce; register with the Social Security Board; register with the Ministry of Labour; and register with the local City Council.

 

For a non-resident company only the first three stages will apply. When you apply for a company registration in Panama we will proceed with all necessary stages for you and on your behalf and formation of your Panama company will only take 3 to 5 working days. At the end of the registration process that we perform for you (as described further below) you will receive full set of company documents for your new Panama Company and will be able to start you activities. Should you decide to set up a bank account, please, also visit our banking section.


Complete package for Panama Corporation


 

What we need from you to register a company in Panama?


  • details of at least Three Directors (natural persons)
  • details of at least One Shareholder (natural person or company)


Our registration fee includes both Registered Office and Registered Agent in Panama as well as all company documents.

 

*** For additional charge you may appoint our Nominee Directors or/and Shareholder. Please, specify in your order if you need nominees.

£650


What you get for the above price

 

This complete package includes everything to meet registration requirements and to have your company registered with your own Director(s) and Shareholder(s). After registration you'll receive the following:

 

  1. Registered address and agent for 1 year
  2. Public Deeds
  3. Minutes of the first meeting of Directors
  4. Share Certificates
  5. Combined Register of members

 

Additional services and documents may be ordered too (including Nominee Directors and Nominee Shareholder).


Registration Process that we will perform on your behalf:


First, incorporation of the company. The most common type of corporation in Panama is the Sociedad AnonimaMost people think that there is a difference between onshore and offshore companies in Panama - this is a misconception.  The reality is the tax system used in Panama is territorial - therefore income earned outside of Panama is not taxed. It is possible for a company to earn both onshore (Panamanian-source) and offshore income in the same company.

 

Second, registration with the Ministry of Economy & Finance (MEF - this is commonly known as the IRD or IRS in other countries).  We automatically register all corporations formed in Panama with MEF upon incorporation and payment of the Government Franchise Tax. This registration is simply so that you get a Tax Registration Number - this number is actually made up of the registration details from the Companies Registry Office, but they add on 2 digits at the end, called the verification digits.

 

Third, registration with the Ministry of Commerce & Industry (MICI).  Foreigners that own companies in Panama can only obtain Type A Licenses.  This is because there is a restriction on some types of business activities, which are reserved for Panamanian citizens.  Obviously, after you obtain citizenship, you will also be eligible to obtain Type B Commercial Licenses.


Annual Renewal

 

Every year you have to renew your company to continue trading and to keep your company in Good Standing.

 

The cost of Annual Renewal is 550 GBP and includes:

 

  1. Registered address for the next 1 year
  2. Registered agent for the next 1 year
  3. Government Fee

 

Additional Charges

 

If you ordered Nominee services, these have to be also paid for according to your original order.


Advantages of Panama Corporations

 

One of the major advantages of Panama Non-resident corporations is that companies registered in Panama are not considered as offshore companies in many jurisdictions in the world. Yet, as a non-resident corporation you still benefit from 100% tax free regime.

 

Over the last few years many governments have created so called "offshore list" of companies. Any local company having affairs with one of the companies in a list would attract more attention from local tax authorities to prevent tax avoidance and maximize corporation tax paid locally by businessman rather than allowing entrepreneurs to implement different tax optimization schemes.

 

There are also cases with some governments when the actual foreign transfers are being restricted to companies that are being listed as "offshore".

 

One of the ways to overcome the above restrictions is to register a company in either low tax jurisdiction (like Republic of Ireland or Cyprus) or in the jurisdiction that allows non-resident tax free regime where any income earned by the company outside of the country of registration would not attract any corporation tax. Republic of Panama is one of such jurisdictions. When you register a company in Panama as a non-resident corporation you can benefit from 100% tax free regime while retaining on-shore status as from the point of view of some governments.





 


Due Diligence (click here to read)

ABOUT PANAMA


Panama - Panama's economy is based primarily on a well-developed services sector that accounts for nearly 70% of GDP. Services include the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, tourism, and medical and healthcare.


In October 2006, Panamanians voted overwhelmingly in favor of a $5.25 billion Canal expansion project to construct a third set of locks, which is expected to be completed in 2014. The Government of Panama expects the project to be a transforming event for Panama that will provide 7,000-9,000 direct new jobs during the peak construction period of 2009-2011 and increase economic opportunities for years to come. The expansion is financed through a combination of loans from multilateral institutions and current revenues. In July 2009, the Panama Canal Authority (ACP) awarded the contract to build the locks to an international consortium led by Spain’s Sacyr Vallehermoso. The locks will be 60% wider and 40% longer than the existing locks so the Canal can handle all but eight of the world’s container vessels, along with supersize tankers and bulk carriers of ores and grains.

 

GDP growth in 2009 was 2.4%, reflecting a slowing of the robust growth of 11.0% seen in 2008. Although growth slowed in 2009, due to the global economic downturn, it has improved in 2010 and is still one of the most positive growth rates in the region. Growth has been fueled by the construction, transportation, maritime, and tourism sectors and Panama Canal-related activities. As a result of this growth, government deficit as a percentage of GDP dropped to 43% in 2009, and government-issued debt is classified as the lowest rung of investment grade. A recent United Nations report highlighted progress in poverty reduction from 2001 to 2007--overall poverty fell from 37% to 29%, and extreme poverty fell from 19% to 12%.


Panama has bilateral free trade agreements (FTAs) in force with Chile, El Salvador, Taiwan, Singapore, Guatemala, Honduras, Nicaragua, and Costa Rica. Panama signed an FTA with Canada in May 2010, but it has not yet entered into force. Panama is exploring free trade negotiations with Mexico, Colombia, the Mercosur countries, the Andean Community, the European Union, and CARICOM. The U.S. and Panama signed a Trade Promotion Agreement (TPA) in June 2007. The agreement was overwhelmingly approved in July 2007 by the Panamanian National Assembly, but has yet to be ratified by the United States Congress. Once implemented, the agreement will promote economic opportunity by eliminating tariffs and other barriers to trade of goods and services and will provide a framework for any trade disputes.