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About Panama
The southernmost of the Central American
nations, Panama is south of Costa
Rica and north of Colombia. The Panama Canal bisects the isthmus at
its narrowest and lowest point, allowing passage from the Caribbean
Sea to the Pacific Ocean. It is marked by a chain of mountains in the
west, moderate hills in the interior, and a low range on the east coast.
There are extensive forests in the fertile Caribbean area. The land
area is 29,340 sq mi (75,991 sq km) and the latest Population estimate
in 2007 indicates the population to be 3,242,173. Whilst the official
language is Spanish 14% of the population speak English as a first language
and many Panamanians are bilingual. Panama's economy is based primarily
on a well-developed services sector that accounts for three-fourths
of GDP. Services include the Panama Canal, banking, the Colon Free Zone,
insurance, container ports, flagship registry, and tourism. |
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Panamanian Corporations and
Foundations
In Panama ORCA form both corporations and foundations. For
banking purposes, there is very little difference. All entities come
with everything you need to open both bank and brokerage accounts.
Generally, corporations are used for profit ventures involving business
activities such as security trading, banking, international business,
ownership of assets etc. We find that over 75% of our clients establish
corporations although foundations have distinct benefits in some
situations. As a rough guide foundations are generally used for non-profit
activities such as charities, receiving or giving donations, grants,
etc, but can also be used for holding purposes such as holding ownership
of corporations or any other type of asset such as a house, boat
or car. Some of our clients use a combination of a corporation and
a foundation. In this situation the foundation holds the shares in
the corporation for additional confidentiality. Although Panama does
not form trusts it is worth briefly looking at their uses because
clients considering forming a foundation might be ideal candidates
for a trust. Trusts are generally used for holding purposes such
as owning corporations, or holding assets such as real estate. However,
these are simply general guidelines for what each type of entity
was initially created for and these guidelines do not have to strictly
adhered to as there is no authority in Panama that enforces the uses
of each type of entity. One crucial difference between a foundation
and a trust is that a foundation is formed in the same way as a corporation
although the structuring is different. A Trust can be 100% anonymous
and only the lawyer forming the trust, you and ourselves will know
the true details of who the parties are. A trust like a foundation
is designed for maximum flexibility and can basically do anything
from owning assets to controlling companies or signing contracts.
In brief, if a person can sign something, own something or carry
out a business transaction, so can the Trust. The complication with
a Trust arises because an offshore trust is not a judicial person;
it is merely a written agreement as to how assets are managed. In
simple terms, a trust is a relationship in which a person, called
a trustor or settlor, transfers something of value, called an asset,
to another person, called a trustee. The trustee then manages and
controls this asset for the benefit of a third person, called a beneficiary. A
Panama Private Interest Foundation is different from any other legal
entity in Anglo-Saxon law because it is not the legal personification
of a person or group of persons (as with a corporation), rather it’s
a legal entity that does not have owners (share-holders, participants,
or partners), it traditionally has a specific purpose for the benefit
of a general group of individuals. Complex I know! But the characteristics
of these three entities when built into the right structure are the
key to maintaining privacy, securing your anonymity and the successful
avoidance of tax.
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Panamanian Corporations
Many of our clients who operate internationally find Panama
an ideal location in which to form and IBC for worldwide operations
and transactions. Panama taxes according to the territoriality principle
(this means it does not tax foreign-source income), only the income
generated locally is taxable and more importantly the nationality of
the individuals running the business has no bearing on any taxation
issues. Another plus is that dividends are not classified as
income subject to tax.
Due to its sophistication and high standard of living as well as its geographical
position, political stability and the characteristics of its economy, Panama
has become one of the most important tax havens in the Western Hemisphere. It
has excellent international transportation and communication systems; the United
States Dollar has been a currency of legal tender for more than ninety years.
Panama has taken several steps to modernize its economy and promote foreign investment.
Most Panamanian and foreign investors choose to form corporations. There are
no exchange controls, currency restrictions or reporting requirements and there
no limits on monetary transfers either to or from the country.
Benefits:
- No reporting requirements.
- It is possible to keep a business under direct control while maintaining
complete confidentiality. Names of
beneficial owners are not publicly available.
- It is not required to file any changes to ownership schedule, after
the registration is complete.
- It is not required to maintain a legal address.
- Stockholders' and directors' meetings may be held anywhere in the
world.
- Capital shares may be issued in a nominative form, or to "bearer" -
the ideal protection of the corporation
owner's identity and total privacy.
- Funds and accumulated offshore profits can be deposited or invested
in any country in the world without
becoming subject to taxation in Panama.
- One person might hold all
three positions of a President, Corporate
Secretary and Treasurer.
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Other common advantages of Panama
corporations are:
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Ultimate financial privacy
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Asset Protection
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Income Tax Reduction
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No inheritance, succession or gift taxes
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Protection from inflation
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Reduction in legal liabilities
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Reduction in operating expenses
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Freedom from currency exchange control
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Local Government concessions, subsidies and support
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Data on owners and directors are not publicly available and remain
confidential
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Easy access to North American and European capital markets
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No international trade tariffs.
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No annual tax return requirements.
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No import/export quantity limitations.
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No costly bureaucracy.
Upon registration of your Panama Corporation you will receive the following Certified
Documents.
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Statutory documents in Spanish with a copy in English with Apostille
Certificate of Incorporation with Notarial Seal and Apostille.
A General Power of Attorney with
the signature of two of the Nominee
Directors, Notarial Seal and Apostille.
Two (2) Share Certificates to the bearer signed by two of the Directors
of the society.
The resignation of the subscribers of the Constituent Act.
3 Nominee Directors
The first year for the service of Resident Agent is included on the sale
price.
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Fees
| Incorporation
Fee Including Nominees |
£995 |
$1995 |
€1250 |
| Annual
Fees |
£695 |
$1395 |
€975 |
due
on anniversary of company |
| If
you require an internet domain registration to accompany
the formation click
here |
Orca Panama Rating
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