Panama is one of the most popular and oldest tax havens, along with high security and privacy. Moreover, Panama is rated as one of the best human-developed countries (60th on the human development index). It has now evolved from an important trading hub into a top international banking and professional services centre. The country boasts a strong economy, which has been pegged to the US dollar since 1904.
This article by JNT is intended to provide general information about setting up a company in Panama.
1. Overview
2. Key requirements
3. Process and procedure
4. Our service package
1. Overview
1.1. Characteristics of foreign companies in Panama
- Exemption from all domestic taxes when income comes from outside Panama
- Clients are not required to go to Panama to register and operate their company
- The offshore company in Panama is also not required to file an annual tax return. However, there are some annual reports to be submitted to the government and JNT will assist the Client in this matter.
- Detailed information about shareholders is kept internally.
1.2. Key features of Corporation – the most common type of company in Panama
Doing business in Panama and deciding to form a Corporation is relatively straightforward, provided that certain requirements are obeyed. There are some key characteristics of forming this type of entity that must be noted. Most importantly, shareholders are only responsible for their own assets and for any of their own contributions. There is also no legislation detailing the minimum social capital of the company.
2. Key requirements
To form a Corporation, the main requirements include:
- Minimum 01 director (an individual or an organization). This director does not need to be residing in Panama;
- Minimum 01 shareholder (an individual or an organization). The director and shareholder can be the same person and there is no limit to the number of shareholders;
- 01 company secretary. Both directors or shareholders can act as the company secretary;
- Minimum capital of 01 USD. However, it is recommended to set up the company with a starting capital of 10,000 USD;
- Registered address at Panama;
- Certified copies of passports and proof of residential addresses of shareholders and directors.
* What do entities need to prepare?
The company needs to provide a copy of the certificate of incorporation and proof of registered address. For each legal representative of the entity, each person needs to provide a copy of their passport and proof of residential address, just like the Shareholder or Director.
*Proof of residential address can be a bank statement, utility bill or identity card/citizen identity card, as long as it is bilingual or English.
3. Process and procedure
Step 1: Check and reserve your company’s name
Please note that company names can be denied for a variety of reasons, the most common being the same name as previously registered companies or the company name containing sensitive or banned words in Panama,…
Step 2: Prepare necessary documents
JNT will help the Client prepare the necessary documents and papers for submission to the competent agency.
We are the leader in applying Pandadocs electronic signature system to help customers complete documents quickly and conveniently. This innovation speeds up the business establishment process by more than 25%, saving time and effort for hundreds of businesses.
Step 3: Submit the application for establishment
Clients will need to sign documents via Pandadocs which are sent directly to their email.
Step 4: Receive the certificate of incorporation in Panama
Clients will receive a soft copy of the enterprise registration certificate and other documents via email. If Clients need to get a hard copy, please contact JNT for further support.
The time to receive the enterprise registration certificate is about 02-03 weeks from the date of submitting the valid application.
4. Our service package
The annual company incorporation and maintenance service package include all that is needed to legally operate and manage a company in Panama:
- New company establishment (Corporation)
- Registered Address Service, 1 year
- Business Secretarial Service (Correspondence Person), 1 year
- Nominee Director Service, 1 year
- Procedures & resolutions as requested by the government – 1 time
The following original corporate documents are issued with a new Panama company and are all included in the price quoted. These are all documents you need to legally run, manage and operate your Panama company.
- Unlimited number of resolutions for non-routine services
- AGM Preparation
- Annual Filing
- Annual Filing government fee
- Corporate Secretary submits Annual Filing and AGM Preparation
JNT is proud to be a pioneer in providing comprehensive solutions for businesses. We will help the Client to prepare all the necessary requirements for the registration and maintenance of the company. We have supported hundreds of local and global entrepreneurs and companies in successfully launching projects worldwide. Contact us to start your “Go Global” strategy today!
Auth. Zed Nguyen
