PANAMA OFFSHORE INFORMATION
Well established finance center with US$ denominated currency. Provides many flexible offshore vehicles together with the Panama Foundation. Efficient and cost effective.
ADVANTAGES |
A very well established jurisdiction that has developed a good reputation over a number of years. The legal infrastructure is well developed and the professionals within Panama have marketed the jurisdiction aggressively and actively over an extended period. Well known flag of convenience for shipping purposes |
DISADVANTAGES |
The recent troubles in Panama have led to a decline in business in this traditional offshore centre. The professionals who once worked solely from Panama now have interests in other jurisdictions such as the BVI and Bahamas and tend to concentrate less on Panama. One of the few non-English language offshore centres |
CORPORATE LEGISLATION SOURCE |
Civil Law; Law Number 32 of 1927 on Corporations and others |
COMPANY STATUS |
Non resident Corporation |
USUAL MINIMUM CAPITAL |
No minimum |
COMPANY NAME |
The name of the corporation may be in any language and must end with an appropriate suffix such as 'Incorporated', 'Societe Anonyme', 'Limited' etc |
TIME TAKEN TO INCORPORATE |
3 - 5 working days |
ARE SHELF COMPANIES AVAILABLE |
Yes |
CAPITAL DUTY |
Registration fee of US$150 for capital of US$10,000. Sliding scale operates above this level |
MINIMUM NUMBER OF SHAREHOLDERS |
Two subscribers required, but only one ongoing shareholder after incorporation |
ARE BEARER SHARES / SHARES OF NO PAR VALUE POSSIBLE? |
Yes, provided they are held by a custodian such as Fiduciary Trust Limited / Yes |
DIRECTORS: MINIMUM NUMBER / CORPORATE DIRECTORS ALLOWED / LOCATION |
Three / Yes / No restriction |
SECRETARY: MANDATORY / CORPORATE SECRETARY ALLOWED / LOCATION |
Yes / Yes / No restriction |
IS THERE A REQUIREMENT FOR A REGISTERED OFFICE / REGISTERED AGENT |
No / Yes |
IS THERE A REQUIREMENT BY THE AUTHORITIES PRIOR TO INCORPORATION OR PRIOR TO TAX STATUS BEING GRANTED |
None |
INFORMATION AVAILABLE ON PUBLIC FILE |
Deed of Incorporation, names and addresses of Directors, Registered Agent |
DOCUMENTS TO BE KEPT AT REGISTERED OFFICE |
None |
CORPORATE BOOKS AND SEAL |
Company must maintain a minute book and stock register, both of which may be maintained in any part of the world |
ACCOUNTS REQUIRED / FILED |
No / No |
ANNUAL RETURN REQUIRED |
No |
WHERE ARE MEETINGS TO BE HELD |
No restrictions |
ANNUAL FEES PAYABLE TO THE GOVERNMENT: TAX / ANNUAL RETURN FILING FEE |
US$300 / Nil |
ARE THERE ANY EXCHANGE CONTROLS |
No |
DOUBLE TAX TREATIES |
None |
GOVERNMENT DUTIES PAYABLE |
Government duty of US$300 is due on the anniversary of incorporation with a late payment penalty of US$50 |
PANAMANIAN FOUNDATIONS
A Cost Effective Alternative to a Full Trust
Private Interest Foundations provide a fiduciary structure for the orderly transfer and disposition of assets to beneficiaries upon the death of the Founder, keeping control of assets during a lifetime.
They may be established to have effect from the date of their constitution or after the death of the Founder.
Inheritance laws that apply in the domicile of the Founder or the Beneficiaries, shall not be effective against the Foundation's assets, nor may these laws affect the validity or performance of the Foundation's objectives.
It is established, under Article 14 of Law No 25 of 1995, that Panamanian Law and Courts must respect the Foundation's objectives and that "forced heirship" rules of other countries will not be enforced against a Panamanian Private Interest Foundation.
However, It is recommended that the assets of the Foundation do not remain in a country with forced heirship provisions as presumably, these may be enforced as a matter of public order in the corresponding country.
Requirements to form a Private Interest Foundation
1. Name desired for the Foundation. This may be in any language with characters of the Latin Alphabet and must contain the word "foundation" within it.
2. Initial patrimony if other than the standard of $10,000
3. Names of the members of the foundation council, which may not be less than three natural persons or one juridical person.
4. Domicile of the foundation if other than Panama.
5. Purposes, if not standard.
6. Duration, if other than unlimited.
7. Name of the protector
Additional terms and specifics for the management of the Foundation are established in the Foundation's Regulations which are adopted by the Founder or the Protector.
The Foundation's Regulations are for internal purposes of the Foundation and are not a matter of public record. Therefore, if desired, information regarding names of beneficiaries and of the protector and method for distribution of assets can safely be contained within the Regulations.
Registration of a Private Interest Foundation takes approximately 3 to 5 working days after all necessary data and documents are received.
